What is an Acceleration Clause? An acceleration clause is a provision in real estate loan documents that lets the lender demand immediate full repayment of the mortgage balance, plus any accrued interest, if the borrower breaches the agreement. For example, missing payments or filing for bankruptcy can trigger this clause, […]
You’re staring at a Zillow listing late at night. The rent looks great, the pictures are decent… but a knot is forming in your stomach. How do you really know if this is a winner or a money pit hiding behind fresh paint? You’re worried about missing one small detail that could
What is Accrued Revenue in Real Estate? Accrued revenue is money you’ve earned by delivering a service—like allowing a tenant to live in your property—but haven’t been paid for yet. In real estate, this usually applies to rent. Even though the service (housing) is provided throughout the month, payment might
What is a Cash Budget? A cash budget in real estate is a financial plan that predicts how much money will flow into and out of a property over a set period, such as a month or year. It includes income like rental payments and expenses like maintenance or mortgage
What is Average Collection Period (ACP)? The Average Collection Period (ACP) is a financial metric that shows the average time it takes to collect payments owed, such as rent from tenants or payments from property buyers, after a sale on credit. For real estate investors, it’s about ensuring you get
What is Arm’s Length Transactions An arm’s length transaction in real estate is a deal where the buyer and seller have no prior relationship and act independently, negotiating in their own best interests. This ensures the property is priced at its fair market value, which is vital for real estate
What is Comprehensive Income? Comprehensive Income is a financial measure that captures the total change in an investor’s net assets over a period, including both realized profits (net income) and unrealized gains or losses (other comprehensive income, or OCI). For real estate, this means it includes rental income minus expenses,
What is Capital Stock? Capital stock refers to the total number of common and preferred shares a company is authorized to issue, as per its corporate charter. For real estate investors, this is crucial when investing in publicly traded real estate companies or Real Estate Investment Trusts (REITs), as it
What is Capitalized Interest in Real Estate? Capitalized interest is the interest on a loan that is added to the principal balance instead of being paid out in cash, especially during the construction or development of a real estate property. This means the interest becomes part of the property’s total
You’ve got the keys and the first rent check is on its way. But while you’ve insured your property against fire and floods, have you protected it from legal chaos? For new real estate investors, the most powerful and overlooked safety net is the contingent beneficiaries. It isn’t a stuffy legal
What is a Bear Trap? A bear trap happens when an asset’s price seems to be falling, leading investors to sell or short-sell, expecting further declines. However, the price then unexpectedly rises, trapping those who bet against it and causing losses. This is often due to large traders manipulating the
Let’s be honest. The single most intimidating moment for a new real estate investor isn’t finding the property—it’s when that 20-page “Purchase and Sale Agreement” lands in your inbox. Your heart pounds. The dream just got very, very real. But what if I told you that entire contract is built