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Real Estate Investment Terms and Abbreviations

Real estate that generates income or is otherwise intended for investment purposes rather than as a primary residence. It is common for investors to own multiple pieces of real estate, one of which serves as a primary residence, while the others are used to generate rental income and profits through price appreciation. Some examples of investment properties are apartment buildings and rental houses, in which the owners do not live in the residential units, but use them to generate ongoing rental income from tenants. Those who invest in real estate also expect to generate capital gains as property values increase over time.

The above is a basic definition of real estate investing but there may be many terms and abbreviations that you need to know. Below is a list of real estate investing abbreviations that will help understand potential and existing real estate investment properties:

ARV – After-Repaired Value
COO or C of O – Certificate of Occupancy
CMA – Comparative Market Analysis
COCR or CCR – Cash on Cash Return
COF – Cost of Funds
CRE – Creative Real Estate
CRE – Commercial Real Estate
DCR or DSCR or DSR – Debt Service Coverage Ratio
DTI – Debt to Income Ratio
FHA – Federal Housing Administration
FMR – Fair Market Rent
FMV – Fair Market Value
FSBO – For Sale by Owner
GNMA – Ginnie Mae (Government National Mortgage Association)
GRM – Gross Rent Multiplier
HML – Hard Money Lender
HOA – Homeowners Association
HUD – Housing and Urban Development
IRA – Individual Retirement Account
IRR – Internal Rate of Return
L/O – Lease Option
LLC – Limited Liability Company
LLP – Limited Liability Partnership
LTV – Loan to Value
MAO – Maximum Allowable Offer
MLS – Multiple Listing Service
NNN – Triple Net Lease
NOI – Net Operating Income
NOO – Non-Owner Occupied
OO – Owner Occupied
O/F – Owner Finance
P&S – Purchase and Sale
PCF – Price to Cash Flow (ratio)
PITI – Principal, Interest, Taxes and Insurance
PUD – Planned Unit Development
REI – Real Estate Investing
REIA – Real Estate Investors Association
REO – Real Estate Owned
ROI – Return On Investment
RTO – Rent to Own
SFH – Single Family House
SFR – Single Family Residence
VA – Department of Veterans Affairs / Veterans Administration

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