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Real estate investing glossary
Plain-English definitions of the underwriting terms DealIntel uses on every deal. Each term page includes the formula, a worked example, and how the metric is applied inside the platform.
Valuation
- After Repair Value · ARVThe estimated market value of a property after planned renovations are complete.
- Capitalization Rate · Cap RateThe annual unlevered return of an income property, expressed as a percentage of its value.
- Cash-on-Cash ReturnAnnual pre-tax cash flow divided by total cash invested — the levered yield on actual dollars committed.
- Comparable Sales · CompsRecent sales of similar properties used to estimate the market value of a subject property.
- Net Operating Income · NOIGross rental income minus operating expenses, excluding debt service — the unlevered cash flow of an income property.
- Gross Rent Multiplier · GRMProperty price divided by annual gross rent — a quick-screen valuation ratio for rental real estate.
- Vacancy RateThe percentage of time a rental property is unoccupied — a key input to NOI and DSCR stress testing.
- EquityThe owner's stake in a property — fair market value minus all liens and debt.
Strategy
- Buy, Rehab, Rent, Refinance, Repeat · BRRRRA long-hold real estate strategy that recycles capital through a cash-out refinance after stabilization.
- The 70% RuleA fix-and-flip discipline that caps the maximum allowable offer at 70% of ARV minus rehab and costs.
- Holding CostsThe total cost of owning a property during a flip — interest, taxes, insurance, utilities, and HOA — measured per month.
- Closing CostsTransaction costs paid at acquisition and at sale — typically 2–4% on the buy side and 5–7% on the sell side.
- Earnest Money Deposit · EMDA good-faith deposit a buyer puts down with the offer — typically 1–3% of purchase price — held in escrow until close.
- Title InsuranceInsurance that protects against losses from defects in property title — paid once at close, covers the duration of ownership.
- EscrowA neutral third-party arrangement that holds funds, documents, or property until contractual conditions are met.
- Wholesale Real EstateA strategy where the wholesaler contracts a property and assigns the contract to a buyer for an assignment fee — typically without taking ownership.
- Section 8 HousingThe US federal Housing Choice Voucher program — tenants pay 30% of income; HUD pays the rest directly to the landlord.
Financing
- Hard Money LoanShort-term, asset-collateralized real estate financing from a private lender — fast to close, higher-cost.
- Loan-to-Value · LTVThe ratio of a loan amount to the appraised value of the underlying property.
- Debt-Service Coverage Ratio Loan · DSCRAn investment property loan qualified on the property's rental income rather than the borrower's W-2 income.
- Principal, Interest, Taxes, Insurance · PITIThe four standard components of a monthly mortgage payment on financed real estate.
- Points (Loan Origination)An upfront fee paid to a lender to originate a loan — each 'point' equals 1% of the loan amount.
- Subject-To Financing · Sub-ToA creative financing structure where the buyer takes ownership but the seller's existing mortgage stays in place.
- Seller FinancingAn arrangement where the seller acts as the lender — buyer makes payments to the seller instead of (or in addition to) a bank.
Tax
Asset
How DealIntel uses these terms
Every metric on this page shows up somewhere in the DealIntel evaluation flow — ARV anchors the verdict, LTV constrains financing, DSCR gates the BRRRR refinance, comps drive confidence, and 1031 surfaces as a long-hold exit option. Understanding the terms makes the verdict actionable.