Real Estate noun
Land and any permanent structures attached to it, considered as property for investment or use.
An investor buys a duplex, rents both units, and benefits from appreciation over 10 years.
Commercial Real Estate (CRE) noun
Property used for business purposes – office buildings, retail space, warehouses, hotels.
A family office buys a strip mall anchored by a grocery store, generating $200k NOI annually.
Residential Real Estate noun
Property used for living purposes – single‑family homes, condos, townhouses, apartment buildings.
A first‑time buyer purchases a 3‑bedroom home for $250,000 with an FHA loan.
Mixed-Use adj
A property that combines residential, commercial, and sometimes industrial uses in one development.
A new building has ground‑floor retail, office space on the second floor, and apartments above.
Zoning noun
Local government regulations that control how land can be used (residential, commercial, industrial).
An investor buys land zoned agricultural but hopes to get it rezoned to residential for development.
Building Permit noun
Official approval from local authorities to construct, renovate, or demolish a building.
Before adding a second story, the homeowner must obtain a building permit from the city.
Certificate of Occupancy (C of O) noun
A legal document in Nigeria (and some other countries) certifying that a building is fit for habitation and confirming ownership.
Before buying land in Lagos, the investor verified the C of O to ensure the seller had clear title.
Survey noun
A detailed measurement and mapping of a property's boundaries, often required for purchase and title insurance.
The survey revealed that the neighbor's fence was 3 feet onto the buyer's property.
Deed noun
A legal document that transfers ownership of real property from one party to another.
At closing, the seller signs the deed, transferring the house to the buyer.
Title Search noun
Examination of public records to confirm a property's legal ownership and identify any liens or claims.
The title search uncovered an old unpaid tax lien; the seller had to clear it before closing.
Lien noun
A legal claim against a property as security for a debt (mortgage, tax lien, mechanic's lien).
The contractor filed a mechanic's lien when the homeowner failed to pay for the roof replacement.
Easement noun
The right to use another person's land for a specific purpose (utility lines, access road).
The power company has an easement to run lines across the back corner of the property.
Restrictive Covenant noun
A rule written into a deed that limits how a property can be used (e.g., no commercial vehicles, minimum square footage).
The subdivision's covenant requires all homes to be at least 2,000 sq ft.
Appraisal noun
A professional estimate of a property's market value, required by lenders for mortgage approval.
The appraisal came in at $280,000, $5,000 above the purchase price – good for the buyer's equity.
Market Value noun
The price a property would sell for in a competitive market; differs from assessed value (for taxes).
The home's market value is $350k, but the county assesses it at $300k for property tax purposes.
CMA noun
A real estate agent's evaluation of a property's value by comparing similar recently sold properties.
The agent prepared a CMA showing that similar homes in the area sold for $240‑260k, guiding the listing price.
Cap Rate noun
NOI / Property Value – measures annual return on an income property, ignoring financing.
A $1M property with $80k NOI has an 8% cap rate. Investors compare cap rates across markets.
Net Operating Income (NOI) noun
Annual rental income minus operating expenses (property management, taxes, insurance) – before mortgage payments.
A duplex rents for $24k/year, with $6k expenses → NOI = $18k.
Cash Flow noun
Net income after all expenses, including mortgage payments. Positive cash flow means profit each month.
After PITI and reserves, a rental nets $200/month – positive cash flow.
Cash‑on‑Cash Return noun
Annual pre‑tax cash flow divided by total cash invested (down payment + closing costs).
You invest $50k cash, earn $5k/year cash flow → CoC return = 10%.
ROI noun
Total profit or loss on an investment relative to the amount invested, expressed as a percentage.
Buy for $200k, sell for $250k after $10k in costs → profit $40k, ROI = 20%.
IRR noun
A metric that estimates the profitability of an investment by accounting for the time value of money.
A 5‑year flip with uneven cash flows has an IRR of 18% – used to compare with other investments.
Equity Multiple noun
Total cash returned divided by total equity invested; a 2.0x multiple means you double your money.
Invest $100k, receive $200k over the hold period → equity multiple = 2.0.
GRM noun
Property price divided by gross annual rental income – a quick valuation tool.
A $300k property rents for $30k/year → GRM = 10. Lower GRM may indicate better value.
DSCR noun
NOI divided by total debt payments; lenders require >1.2 to ensure income covers the loan.
NOI $100k, annual mortgage $80k → DSCR = 1.25 (good).
LTV noun
Mortgage amount divided by appraised value; lower LTV means more equity.
A $180k loan on a $200k property → LTV = 90% (requires PMI).
PITI noun
Principal, Interest, Taxes, Insurance – the total monthly mortgage payment components.
A borrower's PITI is $1,500/month, fitting within the lender's DTI limits.
PMI noun
Insurance required by lenders when down payment is less than 20%, protecting them if you default.
With 5% down, the buyer pays $100/month PMI until they reach 20% equity.
Fixed‑Rate Mortgage noun
A loan with an interest rate that remains constant for the entire term.
A 30‑year fixed at 6% means monthly payments never change.
ARM noun
A mortgage with an interest rate that changes periodically based on a benchmark index.
A 5/1 ARM has a fixed rate for 5 years, then adjusts annually.
Amortization noun
The gradual repayment of a loan through scheduled payments of principal and interest.
An amortization schedule shows that early payments go mostly toward interest.
Cash‑Out Refinance noun
Replacing an existing mortgage with a larger one, taking the difference as cash.
After appreciation, the owner refinances a $150k loan into a $200k loan, pocketing $50k tax‑free for renovations.
HELOC noun
Home Equity Line of Credit – a revolving credit line secured by home equity.
A homeowner uses a $50k HELOC at 8% to fund a kitchen remodel.
Foreclosure noun
The legal process where a lender seizes and sells a property after the owner fails to make payments.
A bank acquires a house at foreclosure auction; it becomes an REO (Real Estate Owned) if unsold.
Short Sale noun
Selling a property for less than the outstanding mortgage balance, with lender approval.
Owing $200k but the home is worth $180k, the bank agrees to a short sale to avoid foreclosure.
1031 Exchange noun
A US tax provision allowing investors to defer capital gains tax by reinvesting proceeds into a like‑kind property.
An investor sells a rental duplex for $500k and uses all proceeds to buy a $600k apartment building, deferring all taxes.
Capital Gains Tax noun
Tax on the profit from selling an asset held for investment; rates differ for short‑term vs long‑term.
Selling a rental after 3 years, the investor pays 15% federal capital gains tax on the $80k profit.
Depreciation noun
A tax deduction that allows investors to recover the cost of an income‑producing property over its useful life (27.5 years for residential).
A $300k rental generates ~$10k annual depreciation, offsetting rental income for tax purposes.
REIT noun
A company that owns and operates income‑producing real estate and is required to distribute 90% of taxable income to shareholders.
An investor buys shares of a healthcare REIT that owns hospitals and nursing homes, receiving quarterly dividends.
mREIT noun
A REIT that invests in mortgages and mortgage‑backed securities rather than physical properties.
An mREIT earns income from the spread between borrowing costs and interest earned on mortgage loans.
Real Estate Crowdfunding noun
Pooling money from multiple investors online to fund real estate projects (Fundrise, CrowdStreet).
A $5,000 investment in a crowdfunded apartment renovation project yields 12% projected IRR.
Real Estate Tokenization noun
Representing ownership of real estate as digital tokens on a blockchain, enabling fractional ownership and liquidity.
A luxury condo is tokenized into 10,000 tokens; an investor buys 100 tokens for $1,000 and receives rental income via smart contract.
Omonile noun
A Yoruba term for land owners or their descendants who may assert claims on land, often complicating transactions without proper verification.
Before buying land in Ibadan, the investor hired a lawyer to verify there were no Omonile disputes.
Land Banking noun
Purchasing undeveloped land with the expectation that it will appreciate as the area grows.
A group buys 50 acres on the outskirts of a growing city, holding for 10 years until development reaches it.
Flipping noun
Buying a property, renovating it quickly, and reselling for profit.
An investor buys a distressed house for $150k, spends $30k on rehab, and sells for $220k – profit $40k before costs.
BRRRR Method noun
Buy, Rehab, Rent, Refinance, Repeat – a strategy to recycle capital by pulling equity out of renovated properties.
Buy $100k house, rehab $30k, rent, refinance at $170k appraisal, pull out $120k, repeat.
Wholesaling noun
Finding discounted properties and assigning the purchase contract to another buyer for a fee, without ever taking ownership.
A wholesaler finds a seller willing to sell at $80k, assigns the contract to an investor for $90k, pocketing $10k.
Subject‑To adj
Taking over a property's existing mortgage without formally assuming it – the seller's name stays on the loan.
An investor buys a house subject‑to the existing 3% mortgage, avoiding new financing at 7%.
Lease Option noun
A contract where a tenant leases a property with the option to purchase it at a predetermined price within a certain period.
A tenant pays $2,000/month rent, with a $10k option fee, and can buy the house for $250k within 3 years.
Section 8 noun
A US government program that provides rental assistance to low‑income tenants; landlords receive subsidized rent directly.
A landlord rents to a Section 8 tenant; the government pays 70% of the rent, the tenant pays 30%.
The Real Estate & Property Investment Lexicon — v.2026 — Dollarland Central Bank of Knowledge