Confused by “expert speak”? No reason to be.
***
A
- AFD
- Agreement For Deed
- AITD
- All-Inclusive Trust Deed
- AMR
- Anticipated Market Value
- APN#
- Assessor’s Parcel Number
- APR
- Annual Percentage Rate
- ARM
- Adjustable Rate Mortgage
- ARV
- After Repair Value
- ASP
- Anticipated Selling Price
B
- BOM
- Back On Market
- BOR
- Board of Realtors
- BPO
- Broker’s Price Opinion
C
- CAD
- County Appraisal District
- Cap
- Capitalization
- CAP
- Cap Rate (NOI/Price)
- CCIM
- Certified Commercial Investment Member
- CCR
- Conditions, Covenants, and Restrictions
- CDA
- Confidential Disclosure Agreement
- CFD
- Contract for Deed
- CLTV
- Combined Loan to Value (if you have a 1st and 2nd or HELOC on your home, it is the combined amount owed divided by the value of your home)
- CMA
- Comparative Market Analysis
- COCR
- Cash on Cash Return
- COE
- Close of Escrow
- COF
- Cost of Funds
- COO
- Certificate of Occupancy
- CPA
- Certified Public Accountant (www.aicpa.org)
- CPI
- Consumer Price Index
- CRB
- Certified Residential Broker
- CRE
- Creative Real Estate
- CRS
- Certified Residential Specialist
D
- DBA
- Doing Business As (also known as Ficticious Firm Name)
- DCR
- Debt Coverage Ratio
- DOM
- Days on Market
- DOS
- Due On Sale Clause
- DOT
- Deed of Trust
- DSCR
- Debt Service Coverage Ratio
E
- EM
- Earnest Money
F
- FAL
- Foreclosure Alert
- FCRA
- Fair Credit Reporting Act (full text)
- FFE
- Furniture, Fixture, and Equipment
- FHA
- Federal Housing Administration
- FHLMC
- Federal Home Loan Mortgage Corporation, also known as Freddie Mac
- FMR
- Fair Market Rent
- FMV
- Fair Market Value
- FNMA
- (pronounced “Fannie Mae”) Federal National Mortgage Association
- FRBO
- For Rent by Owner
- FSBO
- For Sale By Owner
G
- GMAC
- General Motors Acceptance Corporation
- GRM
- Gross Rent Multiplier, the price divided by the total rent. It leaves out expenses (as opposed to the Cap Rate)
- GSE
- Government-Sponsored Enterprise
H
- HELOC
- Home Equity Line of Credit
- HML
- Hard Money Lender
- HOA
- Homeowners’ Association (not to be confused with the American Homeowners Association, AHA)
- HUD
- U.S. Department of Housing and Urban Development
- HVAC
- Heating, Ventilation and Air Conditioning
I
- IEE
- Instant Equity Exchange
- IRA
- Individual Retirement Account
- IRC
- Internal Revenue Code
- IRR
- Internal Rate of Return
- IRS
- Internal Revenue Service
L
- L/O
- Lease Option
- L/P
- Lease Purchase
- L/S
- Landlord Seller
- LIBOR
- London Interbank Offering Rate
- LLC
- Limited Liability Company
- LO
- Lease Option
- LOA
- Letter of Authorization
- LOC
- Line of Credit
- LOI
- Letter of Intent
- LP
- Limited Partnership
- LPOA
- Limited Power of Attorney
- LTV
- Loan-to-Value Ratio
M
- MAI
- Member Appraisal Institute
- MAO
- Maxium Allowable Offer (typically 30% off the ARV less repairs)
- MERS (Mortgage Electronic Registration System)
- an electronic system created by the real estate finance industry to facilitate the tracking of mortgage ownership (see also: MIN), servicing rights and the way they are originated, sold and relinquished. MERS eliminates the need to prepare and record assignments when trading residential and commercial mortgage loans and by doing so reduces the transactional costs of trading of loans. In the vast majority of mortgage documents at local courts and offices across the country, MERS is listed as the holder of the loans, which allows the financial industry to trade mortgages without spending the time and money to refile the paperwork. Through MERS ServicerID, homeowners can search for their current mortgage servicer even if the loan has changed hands to initiate negotiations for revised mortgage terms and take actions that can avoid foreclosure. However, many homeowners in foreclosure alleged that mortgage transfers made through MERS bypass local recording laws and are therefore invalid. Some of the lawsuits contend that MERS, being a database and not the actual holder of the mortgage, does not have standing to foreclose.
- MIN (Mortgage Identification Number)
- a unique 18-digit number (originated by MERS) used to track a mortgage loan throughout its life, from origination to securitization to payoff or foreclosure
- MIP
- Mortgage Insurance Premium
- MLS
- Multiple Listing Service
- MSA
- Metropolitan Statistical Area
- MUD
- Municipal Utility District
N
- NAR
- National Association of Realtors
- NDA
- Non-disclosure Agreement (same thing as a confidentiality agreement)
- NIV
- No Income Verification
- NMD
- No Money Down
- NNN
- Tripple Net Lease
- NOD
- Notice of Default
- NOI
- Net Operating Income (Total Income less all expenses except debt service)
- NOO
- Non Owner Occupied
- NTS
- Notice of Trustee Sale
O
- O/F
- Owner Finance
- OBO
- Or Best Offer
- OO
- Owner Occupied
- OPM
- Other People’s Money
P
- P&S
- Purchase and Sale
- PITI
- Principal, Interest, Taxes, and Insurance
- PMI
- Private Mortgage Insurance
- PML
- Private Money Lender
- POA
- Power of Attorney
- PR
- Primary Residence
- PUD
- Planned Unit Development
R
- REI
- Real Estate Investing (or Real Estate Investor)
- REIA
- Real Estate Investors’ Association
- REIT
- Real Estate Investment Trust
- REO
- Real Estate Owned
- ROI
- Return On Investment
- RTO
- Rent to Own
S
- SBA
- Small Business Administration
- SBC
- Small Balance Commercial (under 5 million)
- SEC
- the Securities and Exchange Commission
- SFH
- Single Family House
- SFR
- Single-Family Residence
- Sub2
- Buying Property Subject to Existing Financing
T
- T/B
- Tenant Buyer
- TAA
- Texas Apartment Association
- TAR
- Texas Association of Realtors
- TAV
- Tax Assessed Value
- TIL
- Truth In Lending
- TREC
- Texas Real Estate Commission
U
- UBIT
- Unrelated Business Income Tax
- UCC
- Uniform Commercial Code
V
- VA
- U.S. Department of Veterans Affairs (also known as the Veterans Administration)
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Did we forget something important? Please comment.