Where cozy means tiny and charming means needs work.
A measure, substance, or action that stops something bad from happening before it does—the 'ounce of prevention' approach to life's problems. Think prophylactic maintenance: fix it now so you're not crying later.
A three-unit residential property where three separate families live their best lives under one roof (sort of). Each unit is independently owned or leased, making it the Goldilocks of multi-family real estate—not as simple as a duplex, not as complex as a four-unit.
A mezzanine financing structure where the lender receives a percentage of property profits in addition to interest payments, used in high-risk development projects. It's designed for situations where traditional debt won't cut it and investors need a seat at the casino.
The process of pooling capital from multiple investors to acquire or develop a property, with returns distributed according to investor agreements. It's how real estate projects get funded when one person doesn't have $50 million lying around.
Money held at closing to secure future obligations like repairs that weren't completed—basically a hostage fund to ensure contractors actually finish their work.
An organization collecting monthly fees to maintain common areas and judge your life choices with shocking authority.
Funds deposited by a buyer to show serious intent to purchase—essentially a financial hostage held for good behavior.
A licensed professional who represents buyers or sellers in property transactions and earns a commission (typically 5-6%) upon sale. They're part cheerleader, part negotiator, and 100% invested in closing the deal.
A property advertised for sale or rent, typically appearing on real estate websites and the Multiple Listing Service (MLS). The digital equivalent of a 'for sale' sign, but with better analytics.
A subordinated loan that sits between first mortgage debt and equity in the capital structure, typically carrying higher interest rates and equity-like features. It's the compromise between debt and equity when a developer needs more money but can't get traditional financing.
A transaction where the seller of a property immediately becomes the tenant, leasing it back from the new owner. Selling your property but refusing to really leave.
A charming relic of industrial-era slum housing, where dozens of families were packed into a structure with approximately the square footage of a shoebox and the ventilation of a tomb. Modern usage: any crumbling, multi-unit rental building where the landlord spends exactly $0 on maintenance and somehow still charges premium rent.
A contract between a property owner and a management company outlining services, fees, and responsibilities for operating and maintaining the property. It's the document that determines whether your landlord actually fixes your toilet in a timely manner.
A lease with predetermined rent increases at specific intervals rather than negotiated annually. Your landlord's way of automating inflation-based rent hikes.
A HELOC—a credit line backed by your home's equity that you can borrow from—basically, a second mortgage waiting to happen.
A loan structure where borrowers pay only interest for a specified period before principal repayment begins. It's great for cash flow in the short term until the balloon payment hits and reality sets in.
A mortgage with an interest rate that changes over time, basically a financial time bomb for those who can't do math.
A loan balance exceeding the property's current value—the mortgage industry's version of 'oops, we miscalculated.'
IRS taxation of previously claimed depreciation deductions when a property is sold—the tax agency's way of clawing back your deductions.
A provision allowing a borrower to terminate a mortgage by substituting government securities with the same cash flow as the remaining loan payments. It's essentially swapping your mortgage debt for Treasury bonds.
A fraudulent scheme where someone strips a property's equity through inflated refinances or loans, leaving the owner with debt and negative equity.
The time period a loan must be held before it can be sold or refinanced—basically the financial equivalent of letting wine age.
A legal document proving ownership of a property and detailing the owner's rights and responsibilities. Essentially a property's birth certificate, complete with all the drama of custody disputes.
The time required to fill vacant units in a newly constructed or recently acquired property with tenants. It's a landlord's test of patience measured in months and spreadsheets.