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Please help a newbie with all of the acronyms
What is a BURRR? Is there a legend somewhere for all the other acronyms? There are several in some of the posts I've read and I am quickly Today is my first time in this forum here and not knowing the lingo, I get lost pretty quickly! TIA!
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Quote from @Max Lambert:
What is a BURRR? Is there a legend somewhere for all the other acronyms? There are several in some of the posts I've read and I am quickly Today is my first time in this forum here and not knowing the lingo, I get lost pretty quickly! TIA!
- REI - Real Estate Investing: This acronym refers to the practice of investing in real estate to make a profit.
- ROI - Return on Investment: This acronym refers to the amount of money an investor can expect to earn in relation to their investment.
- CMA - Comparative Market Analysis: This acronym refers to a report that compares the prices of recently sold properties in a specific area to determine the value of a property.
- NOI - Net Operating Income: This acronym refers to the income a property generates after operating expenses are deducted.
- CAP - Capitalization Rate: This acronym refers to the ratio between the net operating income and the property's value.
- LTV - Loan-to-Value Ratio: This acronym refers to the amount of a loan compared to the value of a property.
- FHA - Federal Housing Administration: This acronym refers to a government agency that provides mortgage insurance to borrowers.
- PMI - Private Mortgage Insurance: This acronym refers to insurance that protects lenders in case a borrower defaults on a loan.
- P&L - Profit and Loss Statement: This acronym refers to a financial statement that shows the revenue and expenses of a property.
- DSCR - Debt Service Coverage Ratio: This acronym refers to the ratio between a property's net operating income and its debt service.
- COCR - Cash-on-Cash Return: This acronym refers to the annual return on investment, expressed as a percentage of the total amount of cash invested.
- BRRRR - Buy, Rehab, Rent, Refinance, Repeat: This acronym refers to a real estate investing strategy that involves buying a property, rehabbing it, renting it out, refinancing it to cash out, and repeating the process.
- HML - Hard Money Lender: This acronym refers to a private lender who provides short-term loans secured by real estate.
- MLS - Multiple Listing Service: This acronym refers to a database of properties listed for sale by real estate agents.
- ARV - After Repair Value: This acronym refers to the estimated value of a property after it has been repaired or renovated.
- PITI - Principal, Interest, Taxes, and Insurance: This acronym refers to the monthly payments a borrower makes on a mortgage.
- HELOC - Home Equity Line of Credit: This acronym refers to a line of credit that uses the equity in a borrower's home as collateral.
- RTO - Rent-to-Own: This acronym refers to an agreement in which a tenant rents a property with the option to buy it later.
- NNN - Triple Net Lease: This acronym refers to a lease in which the tenant is responsible for paying all operating expenses of a property.
- NDA - Non-Disclosure Agreement: This acronym refers to a legal contract that prohibits the sharing of confidential information between parties.
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