Terms Starting with G
52 terms
GC Markup
GC Markup is the percentage a general contractor adds to subcontractor and material costs to cover their overhead (office, insurance, vehicles, staff) and profit, typically ranging from 15-25% of total project cost for residential renovation projects.
GDP (Gross Domestic Product)
GDP (Gross Domestic Product) is the total value of goods and services produced in an economy—the primary measure of economic output and growth—used to define recession (two consecutive quarters of negative growth) and confirm expansion-phase or contraction-phase.
GFCI Outlet
A GFCI outlet (Ground Fault Circuit Interrupter) is a specialized electrical receptacle that monitors current flow and instantly cuts power when it detects an imbalance caused by a ground fault, protecting people from electric shock. It is identifiable by the TEST and RESET buttons on its face.
GIS Mapping (Geographic Information System)
GIS mapping (Geographic Information System mapping) is a technology that layers location-based data — demographics, income levels, vacancy rates, zoning boundaries, and property attributes — onto interactive maps so investors can visualize market conditions, compare neighborhoods, and identify acquisition targets that match their criteria.
Gain-to-Lease
Gain-to-lease is the percentage difference between what a unit currently rents for and what the market supports today. It quantifies the rent upside embedded in a property where existing leases sit below prevailing market rates.
Gap Funding
Gap funding is short-term capital that fills the difference between what a primary lender will fund and what a deal actually costs to complete. It plugs the financial shortfall so an investor can close a deal they couldn't otherwise afford on their own.
Garage Conversion
A garage conversion is the process of converting an existing garage into a habitable living space—typically an ADU, in-law suite, or additional bedroom—with proper insulation, HVAC, plumbing, and electrical.
Garage Door
A garage door is the large, motorized or manually operated panel that covers a home's garage opening, providing vehicle access, security, and curb appeal. For real estate investors, it is consistently one of the highest-ROI renovation upgrades available.
Garden Apartment
A garden apartment is a low-rise multifamily building—typically 1–3 stories—with units that have direct or near-direct ground access, often with patios or small yards, common in suburban and secondary markets.
General Contractor
A general contractor is a licensed professional who coordinates construction projects, hires subcontractors, and manages permits and timelines.
General Contractor Agreement
A general contractor agreement is a written contract between a property owner and a licensed contractor that defines the scope of work, total price, payment schedule, and timeline for a construction or renovation project.
General Ledger
A general ledger is the master financial record for a rental property business — a complete, chronological log of every transaction organized by account type (assets, liabilities, equity, income, expenses) using double-entry bookkeeping, where every entry creates a matching debit and credit.
General Liability Insurance
General liability insurance is a commercial policy that covers third-party claims for bodily injury, property damage, and personal injury arising from the insured's real estate operations or premises.
General Partner (GP)
A general partner (GP) is the managing partner in a real estate syndication or partnership who sources deals, arranges financing, oversees operations, and makes day-to-day investment decisions—in exchange for fees and a share of profits called the promote.
Generational Wealth
Generational wealth is the accumulated financial assets — including real estate equity, investment accounts, and income-producing properties — that one generation builds and transfers to the next, providing heirs with a head start rather than starting from scratch.
Gentle Density
Gentle density refers to small-scale, multi-unit housing built within existing single-family neighborhoods -- think ADUs, duplexes, triplexes, fourplexes, cottage courts, and townhomes. Unlike high-rise apartment buildings, gentle density adds housing units incrementally without dramatically changing a neighborhood's character. A nationwide wave of zoning reform is making gentle density legal in places where only single-family homes were previously allowed.
Gentrification
Gentrification is the process by which higher-income residents move into a lower-income neighborhood—often following infrastructure-development or demand-drivers—driving appreciation, rent growth, and sometimes displacement of existing residents.
Geographic Diversification
Geographic diversification means spreading your real estate investments across multiple cities, states, or regions to reduce the risk of any single market downturn damaging your entire portfolio.
Gift Tax
The gift tax is a federal tax on transfers of property from one person to another without receiving equal value in return — applied at a flat 40% rate on taxable gifts above the annual exclusion ($19,000 per recipient in 2025) that exceed the $13,990,000 lifetime exemption, which is shared with the estate tax.
Ginnie Mae
Ginnie Mae (Government National Mortgage Association) is a wholly government-owned corporation within HUD that guarantees mortgage-backed securities backed by FHA, VA, USDA, and HUD loans. Unlike Fannie Mae and Freddie Mac, Ginnie carries the full faith and credit of the U.S. government — its guarantees are backed by the federal government, not a private shareholder company.
Go/No-Go Decision
The go/no-go decision is the final call on a deal—buy (go) or pass (no-go). It's the output of deal-analysis, investment-criteria, and sensitivity-analysis.
Going-In Cap Rate
The going-in cap rate is the capitalization rate calculated at the moment of acquisition — the ratio of a property's projected first-year net operating income (NOI) to its purchase price, expressed as a percentage. It tells you how much income yield you are buying on day one, before any improvements, rent bumps, or refinancing change the picture.
Golden Handcuffs Escape
The golden handcuffs escape is a financial independence strategy where investors build rental property cash flow to replace their W-2 salary, breaking free from high-paying corporate jobs that trap them through lifestyle obligations and deferred compensation.
Golden Visa
A golden visa is a residency-by-investment program where purchasing real estate above a specified threshold in a foreign country grants the buyer legal residency—and in some cases a pathway to citizenship.
Good Debt
Good debt is money you borrow to acquire an asset that generates income, appreciates in value, or improves your long-term financial position — where the economic return justifies, and ideally exceeds, the cost of borrowing.
Good Debt vs Bad Debt
Good debt generates income or builds wealth — such as mortgages on rental properties. Bad debt does not generate income — such as high-interest credit cards.
Good Faith Estimate
A Good Faith Estimate (GFE) is a standardized disclosure form lenders provided within three business days of a mortgage application, showing estimated loan terms and closing costs. Retired in 2015 and replaced by the Loan Estimate under TRID — though the term still circulates widely, and the GFE remains legally required for HECM (reverse mortgage) applications.
Government Shutdown Impact
Government Shutdown Impact refers to the effects of a federal government funding lapse on real estate markets, including delayed FHA/VA loan processing, suspended USDA loans, halted IRS income verification, and disrupted federal employee income — all of which can temporarily freeze real estate transactions.
Government-Backed Loan
A government-backed loan is a mortgage where a federal agency — FHA, VA, or USDA — insures or guarantees repayment to the lender if the borrower defaults. The government doesn't lend the money; it absorbs the lender's loss risk. That reduced risk is why lenders accept lower down payments and looser credit thresholds than they'd ever offer on a conventional loan.
Grace Period
A grace period is a defined window of time after rent is officially due — typically three to five days — during which a tenant can pay without incurring a late fee. The rent is still legally due on the first of the month; the grace period simply delays when the landlord begins collecting the penalty.
Grading and Drainage
Grading is the process of reshaping soil around a property so that water flows away from the foundation rather than pooling against it. Proper drainage is the system of slopes, channels, and structures that carries that water safely off the lot.
Graduated Lease
A graduated lease is a rental agreement that schedules predetermined rent increases at specific intervals — typically annually. Instead of a flat monthly rent, the lease spells out exactly when rent rises and by how much, giving both landlord and tenant full visibility into future payments from day one.
Grandfathered Use
A grandfathered use is a property use that was lawful when it began but no longer conforms to current zoning — and is legally permitted to continue because it predates the rule change. Municipalities call this a "legal nonconforming use."
Grant Deed
A grant deed is a legal document that transfers real property ownership from a seller (grantor) to a buyer (grantee), with two implied covenants: the grantor hasn't already transferred title to someone else, and the grantor hasn't created any undisclosed encumbrances during their ownership period.
Gray Box
A gray box is a commercial space delivered with basic mechanical, electrical, and plumbing systems in place but no interior finishes — no flooring, no ceiling tiles, no paint, and no partitions beyond structural walls.
Great Stabilization
The Great Stabilization is the post-pandemic market phase where home prices plateau, interest rates normalize, and the extreme volatility of 2020-2023 gives way to predictable, fundamentals-driven real estate conditions.
Greece EU Residency
Greece EU Residency refers to Greece's Golden Visa program, which grants non-EU investors a 5-year renewable residence permit through real estate investments of EUR 250,000-500,000, providing Schengen Area access with no minimum stay requirements.
Greenfield
A greenfield is a parcel of land with no prior development — no existing structures, no contamination, and no infrastructure in place. Developers start from a blank slate.
Gross Lease
A gross lease is a rental agreement in which the landlord pays all or most property operating expenses — taxes, insurance, utilities, and maintenance — while the tenant pays a single flat monthly rent that bundles those costs into one all-inclusive figure.
Gross Rent
Gross rent is the total rent collected or collectible from a rental property before subtracting vacancy losses, operating expenses, or any other deductions — the true top line of your rental income statement and the starting point for every deal analysis.
Gross Rent Multiplier
Gross rent multiplier (GRM) is the property price divided by gross annual rent—how many years of gross rent it would take to pay off the purchase price. A $300,000 property with $30,000 gross rent = 10x GRM.
Gross Rental Income
Gross rental income (GRI) is the total rent you'd collect if every unit was occupied at full market rate for the full year — the ceiling before vacancy, credit loss, or operating expenses. It's the top line of the income statement.
Gross Yield
Gross yield is the ratio of gross rental income to purchase price—expressed as a percentage. It's a quick screening metric before factoring in expenses and financing.
Ground-Up Development
Ground-up development is the process of constructing a new building on raw or cleared land rather than acquiring an existing structure. It covers everything from purchasing the site through entitlement, design, construction, and eventual lease-up or sale.
Grouping Election
A grouping election is a tax filing choice under IRS Regulation §1.469-4 that lets you combine two or more rental activities into a single activity for purposes of the passive activity rules under IRC §469 — pooling your hours across all grouped properties so they count toward one material participation test instead of requiring 500+ hours per property individually.
Guarantor
A guarantor is a third party who agrees to cover a tenant's rent or lease obligations if the tenant defaults — but only after the landlord has first attempted to collect from the tenant directly.
Guest Amenities (STR)
Guest amenities are the physical supplies, features, and conveniences provided at a short-term rental property to meet guest needs, enhance comfort, and influence reviews and repeat bookings.
Guest Communication (STR)
Guest communication is the complete system of messages exchanged between a short-term rental host and a guest — from the first inquiry before booking through the checkout review request. It covers pre-arrival instructions, mid-stay check-ins, and post-stay follow-ups, and is most commonly handled through automated messaging tools rather than manually.
Guest Guidebook
A guest guidebook is a written reference document provided to short-term rental guests that covers everything they need to know about the property — from check-in instructions and house rules to local recommendations and emergency contacts. It reduces host workload, sets clear expectations, and is a direct driver of five-star reviews.
Guest Review
A guest review is the rating and written feedback a short-term-rental guest leaves after their stay—visible to future guests and used by Airbnb and VRBO for search ranking and guest-screening.
Guest Screening
Guest screening is the process of evaluating potential short-term-rental guests before accepting a booking—using guest-review history, ID verification, and house rules—to reduce risk of damage, parties, or violations.
Gutters and Downspouts
Gutters and downspouts are a channeling system mounted along a roof's edge that collects rainwater and directs it away from the building's foundation, siding, and landscaping.