Real Estate Terms

Welcome back to my page. Today I want to share a few things as i learn more about real estate investment side. I've come to use on a daily basis when meeting with clients are: NOI = Net Operating Income GOI = Gross Operating Income DS = Debt Service DSCR = Debt Service Coverage Ration PP = Purchase Price ARV = After Repair Value REO = Real Estate Owned LTV = Loan To Value CR = Credit Exp = Expense Rehab = Rehabiliation BPO = Broker Price Opinion While the majority of discussion revolve around some of the terms above, I've also come to utilize the term below as well. As-Is-Value: This term is used to assess the actual current value of the property After Repair Value: This term is used when an off market property has been acquired and completely rehabilitated to current market condition and best price. Off Market: This term is used when a property is not listed or put up for sale on the Market. Normally investors flock for Off Market property, as they present a better return on investment provided the property is acquired between 35% to 60% of it's current value. Obviously depending on your strategy you are using, you will have your own parameters of what you are more comfortable investing with off market properties. I hope this provided you with some added benefits on your real estate journey. More to come!