An accredited investor is an investor who meets the SEC's definition of an accredited investor.
An alternative investment is an investment that is not a traditional asset, such as stocks, bonds, or cash.
An asset is anything that has value and can be converted into cash.
Assets Under Management (AUM)
Assets Under Management is a term used to describe the total value of assets that a firm manages on behalf of its clients.
A bear market is a period of time in which the stock market is experiencing a sustained decline in values.
A bridge loan is a type of short-term loan that is used to finance the purchase of a property.
A bull market is a period of time in which the stock market is experiencing a sustained increase in values.
Capital Gain Taxes
Capital gain tax is a tax on the sale of an asset, such as a property, that has appreciated in value.
A capital stack or capital structure is a term used to describe the hierarchy of a company's or a property's debts and equity.
The Capitalization Rate, or Cap Rate, is a measure of the rate of return on an investment in real estate, taking into account the effects of inflation.
Collateral is an asset that is used to secure a loan.
Compound interest is the interest that is earned on both the principal and the interest that has been previously earned.
Core is an investment strategy that seeks to provide stable income and modest capital appreciation.
Core-plus is an investment strategy that seeks to provide stable income and modest capital appreciation.
Crowdfunding is a way for people to pool money together to invest in projects or businesses.
Debt is defined as an obligation to repay a sum of money.
A real estate development, or a property development, is a process of creating value by renovating, constructing new buildings, or improving existing real estate assets.
Distributions are payouts of assets from a fund, account, or security to an investor.
Diversification is the process of investing in a variety of assets in order to reduce risk.
Equity is calculate by subtracting liabilities from an asset's value.
A first-lien mortgage is a loan that is secured by the borrower’s primary residence.
Fixed income refers to investments that pay a fixed rate of interest.
Fractional Real Estate
Fractional real estate is a type of ownership in which the buyer purchases a share of a property rather than the entire property.
A hard asset is a tangible resource with economic value.
The hold period is the length of time that an investor holds an investment before selling it.
Inflation is a measure of the rate of increase in the prices of goods and services.
An interest rate is the percentage of a loan that is charged as interest.
An investment property is a type of property that is purchased with the intent to generate income or appreciation.
Liquidity is the degree to which an asset can be converted into cash.
Loan-To-After-Repair Value (LTARV)
The Loan-To-After-Repair Value is the estimated value of a property after repairs and renovations have been completed, divided by the amount of the loan.
Mezzanine debt is a type of financing that is typically used to fund the purchase or renovation of commercial real estate.
Multifamily Real Estate
Multifamily real estate is a type of property that consists of two or more units, each of which is leased to a separate tenant.
Opportunistic is an investment strategy that seeks to achieve high capital appreciation through the purchase of properties that are undervalued or in need of repositioning
Passive income, also known as recurring income or residual income, is income that is earned on a regular basis with little or no effort required to maintain it
Preferred equity is a type of investment that gives the holder certain privileges.
Preferred returns are payments made to investors in a real estate syndication.
Private Equity Fund
A private equity fund is a pooled investment vehicle that is used to invest in private companies or real estate. P
Private Market Real Estate
Private real estate is a type of investment in which the buyer purchases a property directly from the seller, rather than through a public market such as the stock market.
A pro-forma is a financial statement that projects future income and expenses.
Rate of Return
The rate of return is the percentage of an investment that is earned as income.
Real estate is a physical asset that consists of land and the buildings on it.
A redemption is the act of repaying an investment, typically with interest.
Regulations A, A+, D
The Securities Act of 1933 requires that any offer to sell securities in the United States be registered with the Securities and Exchange Commission or meet specific qualifications for exemption.
A secured position in the Capital Stack refers to a loan that is backed by collateral.
A security is a financial asset that can be traded.
Senior debt is a loan that has priority over other debts in the event of default.
An unaccredited investor, or non-accredited investor, is an investor who does not meet the SEC's definition of an accredited investor.
Underwriting is the process of assessing a potential investment and determining whether or not to provide funding for it.
An unsecured position in the Capital Stack means the creditors cannot foreclose on the property.
Value added is the process of making improvements to a property that increase its value.
Yield is a measure of return on an investment. I