Terms Starting with T
125 terms
Cap Rate
Cap rate (capitalization rate) is the annual percentage return a property generates based on its net operating income divided by its purchase price or current market value. It strips out financing entirely — showing what you'd earn if you paid all cash — making it one of the fastest ways to compare deals across different markets.
Churn Rate
Churn rate is the percentage of tenants who vacate a rental property or portfolio during a specific period—typically measured annually. It's the inverse of tenant retention and one of the most direct indicators of property management effectiveness.
Compound Growth Rate
Compound growth rate measures the annual rate at which an investment grows when returns are reinvested, creating a snowball effect where you earn returns on your returns — and real estate supercharges this through leverage.
Conversion Rate (Deals)
Conversion Rate (Deals) 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.
Effective Interest Rate
Effective Interest Rate 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.
Exit Cap Rate
Exit Cap Rate 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.
First Deal
Your first deal is the initial real estate investment you close—typically a house hack, single-family rental, or small multifamily property. It is simultaneously the hardest deal you will ever do (because everything is new) and the most important (because it proves you can do it and sets the foundation for every deal that follows).
Fixer-Upper Trap
The Fixer-Upper Trap occurs when investors purchase distressed properties expecting profitable renovations but encounter cost overruns, extended timelines, and hidden structural issues that erode or eliminate the projected profit margin.
Investment Thesis
An investment thesis is your written statement of what you're buying, why, and under what conditions—it filters deals and keeps you disciplined when the market tempts you to drift.
Mortgage Rate
The mortgage rate is the interest rate charged on a real estate loan—typically the 30-year fixed rate for residential—driven by federal-funds-rate, yield-curve, and interest-rate-cycle, affecting leverage, DSCR, and cap-rate.
Nightly Rate
Nightly Rate is a financial analysis concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of str airbnb investing deals.
Nominal Interest Rate
Nominal Interest Rate 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.
Occupancy Rate
Occupancy Rate is a financial analysis concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of small multifamily investing deals.
TRID (TILA-RESPA Integrated Disclosure)
TRID (TILA-RESPA Integrated Disclosure) is a title and closing concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of purchase process deals.
Tag-Along Rights
Tag-Along Rights is a legal strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of syndication deals.
Takeout Financing
Takeout Financing is a real estate lending concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of financing deals.
Tangible Asset
A tangible asset is a physical asset with intrinsic value that you can see, touch, and use—such as real estate, land, machinery, or precious metals. Real estate is the largest tangible asset class in the world.
Tankless Water Heater
Tankless Water Heater is a construction and renovation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of value add renovations deals.
Tap Fee
Tap Fee is a legal strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of legal protection asset structuring deals.
Target Market
Target Market is a market analysis concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of real estate investing deals.
Tariff Impact on Construction
Tariff Impact on Construction refers to the effect of government-imposed import duties on construction materials — primarily lumber, steel, aluminum, and manufactured goods — which increase renovation costs and affect real estate investment returns.
Tariff Shockwave
A Tariff Shockwave describes the cascading economic effects of sudden or significant tariff policy changes on real estate markets, including construction cost spikes, housing supply disruption, consumer confidence shifts, and investment capital reallocation that ripple through the industry over 6-18 months.
Tax Assessed Value
Tax Assessed Value is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of first rental property deals.
Tax Audit
Tax Audit is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of tax optimization deals.