A SHORT GLOSSARY TO HELP YOU UNDERSTAND THE US REAL ESTATE MARKET
A SHORT GLOSSARY TO HELP YOU UNDERSTAND THE US REAL ESTATE MARKET
As in all fields, real estate has its own jargon, phrases, and abbreviations. While the terms related to this field may be more or less familiar to you in French, they may be less so in English. Even when you're fluent in the language of Shakespeare, some words are difficult to grasp.
To avoid confusion and mistakes, Investir.US offers a short glossary to help you understand the US real estate market. This list is, of course, not exhaustive; it presents the most commonly used terms.
Bottom fisherman
Those who use this expression know that they are looking at an investor who is trying to buy below the asking price, looking to get a great deal.
Bumps
Periodic increase in rents
Ceiling / Floor
The French translation of "ceiling" is "ceiling." It is the maximum interest rate on a variable-rate loan.
In French, "floor" means "floor." It is the minimum interest rate on a variable-rate loan.
Condo reversion
A condominium that takes on the status of rental property.
Debt service
Monthly payment of a mortgage loan including the amount to be repaid and interest.
Dog
While the term "dog" refers to a pet in everyday language, in the US real estate market it simply refers to a building that is worthless.
Evergreen loan
A mortgage loan that is renewed repeatedly, without ever ending.
Firm price / Firm offer
A non-negotiable price or offer.
Flex space
The term "flex space" could be translated as "flexible place": it is simply a property that combines warehouses and offices in a single location.
Going north / south
We talk about going "north" when property values or interest rates rise. Conversely, going "south" corresponds to a decline in values and/or interest rates.
Grandfathered
A property described with this term indicates that it does not comply with current zoning.
Growth rate
The "growth rate" is the growth rate, that is, the annual percentage increase in the value of a property.
Hard costs / Soft costs
“Hard” or “Soft”, these are the costs injected into the construction of a building (hard) and other costs (soft).
Hard money
Non-refundable sum of money, paid in advance (deposit).
Infinity Return
Cash flow without cash investment.
Knockdown
This is a piece of real estate with very little value and could be demolished to make way for a new building.
Segregated cost depreciation
This involves the evaluation of the different components of the same real estate property.
Sleeper
A great deal that most people don't know exists.
Steal
Cheap real estate purchase.
Sweetheart lease
Special agreement offered to a tenant.
Turnaround
Transformation of an unprofitable property into a profitable investment.
Turnover
Percentage of tenants who leave their homes each year.
Wiggle room
Room for maneuver linked to the price of a property within the framework of a transaction.
To make your investment a success and take full advantage of the US real estate market, get help from a French-speaking expert . By your side, your advisor will be able to guide you and answer your questions... in French!
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