INVESTOR RESOURCES
Real Estate Terms, Simplified
Our clear and concise guide to real estate finance removes the complexity of key terms, empowering you to make informed investment decisions, communicate with confidence, and seize opportunities with certainty.
Kubera Global Capital is a real estate private lender specializing in hard money loans.
Why Understanding Real Estate Terms Elevates Your Strategy:
Developing a strong understanding of real estate terminology empowers you to
- Turn Knowledge Into Wealth
By mastering real estate language, you gain the tools to assess opportunities effectively and make profitable decisions with confidence.
- Master Strategic Communication
Leverage expert-level terminology to elevate your communication with lenders, brokers, and industry leaders, ensuring clarity and credibility.
Optimize Financial Growth: Leverage your expertise in real estate finance to strategically navigate and capitalize on opportunities that drive substantial returns, ensuring long-term prosperity.
Real Estate Terminology:
The Foundation of Smart Investments
- As Is Value: The current market value of a property without any improvements.
- As Repaired Value: The estimated value of a property after renovations.
- Borrowing Entity: The legal structure through which the borrower secures the loan, such as an LLC or corporation.
- Bridge Loan: A short-term loan used until permanent financing is secured or a property is sold.
- Cash Reserves: The borrower’s available liquid funds for expenses and loan payments.
- Cost Spent to Date: The sum of all expenses paid up to the present.
- Cross-Collateralization: Using multiple properties as collateral for one loan to increase borrowing power.
- Current Maturity Date: The updated repayment deadline, considering any extensions.
- Extension Options: The borrower’s ability to extend the loan term under predefined conditions.
- First Payment Date: The due date of the borrower’s first loan payment.
- Funded Date: The date loan proceeds are disbursed to the borrower.
- Guaranty Type: The level of personal or business liability backing a loan.
- Interest Accrual Type: The method by which interest is calculated, such as daily or monthly.
- Interest Rate: The percentage charged by the lender for borrowing funds.
- Interest Reserve Amount: Funds set aside to cover loan interest payments during the term.
- LTAIV (Loan-to-As-Is Value): A ratio comparing the loan amount to the current property value.
- LTC (Loan-to-Cost): A ratio measuring the loan amount against the total project cost.
- Lien: Legal claim attached to a property that gives a lender the right to sell the property if the borrower defaults on the loan.
- LTAIV (Loan-to-As-Is Value): A ratio comparing the loan amount to the current property value.
- LTC (Loan-to-Cost): A ratio measuring the loan amount against the total project cost.
- Lien: Legal claim attached to a property that gives a lender the right to sell the property if the borrower defaults on the loan.
- LTARV (Loan-to-After-Repair Value): A ratio comparing the loan amount to the projected post-renovation value.
- Non-Recourse: A loan where the lender can only claim the collateral if the borrower defaults.
- Origination Date: The date the loan agreement is finalized.
- Original Maturity Date: The initial date when the loan is scheduled to be fully repaid.
- Post-Rehab Square Footage: The size of a property after renovations.
- Pre-Rehab Square Footage: The size of a property before renovations.
- Property Acquisition Date: The date the borrower purchased the property.
- Property Type: The classification of real estate, such as residential, commercial, or mixed-use.
- Purchase Price: The amount paid to acquire a property.
- Purchase w/ Holdback: A property purchase loan where a portion of funds is held back for future improvements or conditions.
- Realtor®: Licensed professional who facilitates property transactions, representing clients in buying, selling, or renting real estate.
- Recourse: A loan where the borrower is personally liable for repayment beyond the collateral.
- Remaining Budget: The portion of the budget yet to be spent.
- Total Budget: The complete estimated cost of a project, including all expenses.
- Total Cost: The actual amount spent on a project.
- Total Loan Amount: The full loan amount, including all disbursed and holdback funds.
- Total Origination Points: Fees charged by the lender at closing, expressed as a percentage of the loan amount.
- UPB (Unpaid Principal Balance): The remaining amount the borrower owes on a loan.
- Value Source: The method used to determine a property’s value, such as an appraisal or broker opinion.
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West Boca Executive Suites
West Boca Executive Suites
7777 Glades Rd. Suite 100
Boca Raton, FL 33434