A to Z · 1055 Terms

Real estate & finance, demystified.

The jargon can be exhausting. Here’s a plain-English glossary covering real estate, lending, investment, and the business-finance ecosystem that surrounds them.

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Leasing & Operations

Base Year

The reference year for measuring future operating expense increases in a lease.

Leasing & Operations

Cancellation Option

A tenant’s right to terminate the lease early, usually with notice and a fee.

Leasing & Operations

Common Area Maintenance (CAM)

Charges paid by tenants for upkeep of shared areas in commercial properties.

Investment Strategies

Forced Appreciation

Increasing a property’s value through improvements or operational gains, not market growth.

Investment Strategies

Geographic Diversification

Spreading investments across different markets to reduce concentration risk.

Investment Strategies

House Hacking

Living in part of a multi-unit property while renting out the rest to offset costs.

Investment Strategies

Land Flipping

Buying raw land below market value and reselling at a markup.

Investment Strategies

Lazy 1031

Offsetting capital gains with cost-segregation losses on a new property instead of doing a formal 1031.

Investment Strategies

Lease Option

A lease that gives the tenant the right to purchase the property at a set price during the lease.

Investment Strategies

Live-In Flip

Living in a renovating property as a primary residence to qualify for the Section 121 exclusion on sale.

Investment Strategies

Mid-Term Furnished Rental

30-90 day furnished rentals targeting traveling professionals and insurance placements.

Investment Strategies

Mid-Term Rental (MTR)

Rentals of 30+ days, popular with traveling professionals and relocating families.