Think Realty
The branch of law dealing with asset protection ...
A three-digit number used as a primary indicator by many lenders of how likely a borrower is to pay off a debt. Scores can range from 300 to 850. The higher the score, the more financially trustworthy a person is considered to be ...
The compilation of eligible repayment information into a single report on a borrower’s past behavior regarding payment and nonpayment of debts. Credit reports may include information from banks, credit card agencies, collection agencies, government agencies, and other lenders. Not all information included in a credit report may be used to ...
The record of a borrower’s repayment of debts. The data included in this history includes every payment behavior, but not all of that data is legally available for inclusion in a credit report or usage by an entity evaluating a borrower’s credit risk ...
A solution for corporate employees who need monthly lodging, usually provided through businesses offering fully furnished private residences for stays of 30 or more days ...
Conventional mortgages are not insured or guaranteed by the federal government (neither a VA nor FHA loan). Conventional mortgages adhere to guidelines set by Fannie Mae and Freddie Mac and may have a fixed interest rate or an adjustable interest rate. While not included in the definition, a reference to ...
A traditional bank lender offering conventional mortgage financing using traditional methods to evaluate credit risk. Conventional lenders tend to offer qualified mortgages based on credit rating, loan-to-value (LTV), and down payment ...
Construction loans are intended to finance construction of a physical structure rather than to be long-term financing. Residential construction loans may be converted to permanent after a home is complete in some cases, while most commercial construction loans require refinancing in order to exit them. They tend to be a ...
An agreement between a buyer and seller that the transaction (in real estate, usually the purchase of a piece of property) if certain conditions are met ...
Comparative Market Analysis (CMA)
Evaluation of how properties in an area have sold conducted for the purpose of making predictions about how a specific property might sell in the future. CMAs use comparable properties (comps) in the local area to make predictions about price, time on market, and other strategic decisions when listing a ...
A mortgage secured by a lien on a piece of commercial real estate rather than a piece of residential real estate. Commercial loans tend to be made to business entities and are frequently five years in length or fewer, with balloon payments made at the end of the term of ...
Any property used exclusively for business purposes. Commercial real estate includes retail space, office space, hotels, dining space, banks, and independently standing stores and service providers. Some definitions include industrial real estate space in the commercial sector ...
A color palette is the color scheme that you use in the home. It can change from room to room or flow throughout the house. Most designers recommend color palettes that vary, but do not clash ...
Checkbook LLCs allow “checkbook control,” which means if an IRA owns a checkbook LLC, the owner of that IRA has complete signing authority over the retirement funds in the retirement account. This is important if you use investing strategies like flipping or buying at auction that require you to make ...
The process of tapping into a property’s equity during the refinancing process. Cash-out refinancing involves refinancing a loan for more than the amount originally owed so that their loan is larger than it was before the refinance. The difference goes to the borrower in cash. Also referred to as a ...
When a lender opts to pay a delinquent borrower a sum of money to help them relocate and, in return, the borrower vacates the property and signs over all interest in it to the lender ...
The annual return an investor makes on a purchase of real estate in relation to the down payment (cash) only ...
A property that is generating regular income at time of purchase ...
Use this calculator to quickly compare and screen multiple rental properties in a given market. The math: (Property Fair Market Value / Annual Gross Rental Income) = GROSS RENT MULTIPLIER Calculating the Gross Rent Multiplier (GRM) is a quick way to compare multiple rental properties' return by evaluating the number ...
Also known as holding costs. These are the costs associated with owning a piece of real estate during a rehab. These costs may include monthly mortgage payments, insurance, utilities, and security ...
A tax levied on the profit from the sale of a property or investments. These taxes may be nearly 30 percent or more of the total profits on the investment ...
Capitalization (cap) rate is the rate of return on a real estate investment based on the income the investor expects the property to generate. Cap rate estimates potential return. Calculate your cap rate with our REI-optimized Think Realty calculator! ...
When a bank accelerates all payments on a loan to make the entire balance immediately due. Usually banks include the right to do this in their loan agreements ...
Debt Service Coverage Ratio (DSCR)
Use this calculator to evaluate the viability of an rental property from a financing perspective. The math: (Net Operating Income / Debt Service) = DSCR Debt Service Coverage Ratio (DSCR) calculations are commonly used by lenders to determine your ability to make loan payments based on the performance of the ...
Use this calculator to check the cash yield on an investment property, commonly after its first year in your portfolio. The math: (Annual Pre-Tax Cash Flow / Total Cash Invested)*100 = CASH-ON-CASH RETURN Cash-On-Cash Return calculations measure your return on the actual cash invested over one year. This calculator is ...
