Investment Glossary

A short-term loan used to finance the acquisition or renovation of a property before permanent financing is obtained.

Capitalization rate — the ratio of NOI to property value, used to estimate return on investment.

The ratio of a loan amount to the appraised value of the property, used in debt investments.

Total property revenue minus operating expenses, excluding mortgage payments and taxes.

The percentage of a property's rentable space that is currently leased to tenants.