Terms Starting with P
204 terms
Acquisition Price
Acquisition Price is a deal evaluation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of brrrr strategy deals.
Analysis Paralysis
Analysis paralysis is the state of over-analyzing potential investments to the point where you never take action. It is the most common obstacle preventing new investors from buying their first property—and it costs more in missed opportunities than any bad deal ever could.
Below Replacement Cost
Below Replacement Cost is a deal evaluation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of deal analysis deals.
Break-Even Point
Break-Even Point is a financial analysis concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of rental strategy buy and hold deals.
Cash Flow Projection
Cash Flow Projection is a deal evaluation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of real estate investing deals.
Conventional Loan
A conventional loan is a mortgage that isn't backed by the federal government — no FHA, VA, or USDA. Lenders sell the loan to Fannie Mae or Freddie Mac (conforming) or keep it in portfolio (non-conforming/jumbo).
Credit Loss
Credit loss is the rental income lost to tenant non-payment—late payments that become write-offs, eviction losses, and uncollectible amounts. It's a deduction from gross rent to arrive at effective gross income.
Credit Score
A credit score is a number (typically 300–850) that summarizes your creditworthiness. Lenders use it to decide whether to approve your mortgage and what interest rate to charge.
Deal Analysis Process
The deal analysis process is the systematic evaluation of an investment property—gathering data on rent, expenses, financing, and returns to determine whether the deal meets your investment criteria.
Deal Analysis Template
Deal Analysis Template is a foundational investing concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of real estate investing deals.
Due Diligence Period
The due diligence period is the window after you're under contract—typically 7–21 days for rental property—when you verify the deal (inspections, rent roll, title, operating expenses) and can cancel without losing your earnest money.
FHA Loan
An FHA loan is a government-insured mortgage that lets qualified borrowers buy 1–4 unit properties with as little as 3.5% down — as long as they live in one unit as their primary residence for at least 12 months.
Hard Money Loan
A short-term, asset-based loan from a private lender, typically used to finance property acquisitions and renovations at higher interest rates than conventional mortgages, with the property itself as collateral.
Holding Period
Holding period is how long you plan to own an investment property before refinance, 1031 exchange, or sale—shaping exit strategy and compound interest potential.
Home Equity Loan
A home equity loan is a second mortgage that provides a lump sum of money at a fixed interest rate, secured by the equity in your home, with predictable monthly payments over a set term.
Inherited Property
Inherited Property is a deal evaluation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of real estate investing deals.
Market Rent Premium
Market Rent Premium is a financial analysis concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of rental strategy buy and hold deals.
Mentor Selection Process
The Mentor Selection Process is a structured evaluation framework for identifying, vetting, and engaging with a real estate investing mentor who has verifiable experience, relevant expertise, and a genuine interest in your success — as opposed to self-proclaimed gurus selling expensive coaching programs.
Mortgage Payment
Mortgage Payment is a financial analysis concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of real estate investing deals.
Net Worth
Net Worth is a financial analysis concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of real estate investing deals.
Nominee Owner
A nominee owner is a person or entity that holds legal title to real property on behalf of another party—the beneficial owner—who retains all economic rights, decision-making authority, and financial responsibility for the property.
Option Period
Option Period is a deal evaluation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of purchase process deals.
PCE (Personal Consumption Expenditure)
PCE (Personal Consumption Expenditure) is a economic fundamentals concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of market cycles deals.
PITI (Principal, Interest, Taxes, Insurance)
PITI is your total monthly housing payment—principal, interest, property taxes, and homeowner's insurance. It's the number lenders use for the housing-expense-ratio and debt-to-income qualification.