Investment Dictionary

Understand essential real estate financial terms—from cap rates to cash flow—with clear explanations to help you invest confidently.

• What is Cap Rate?
• Accumulation of Wealth
• Cash on Cash Return
• DCR (Debt Coverage Ratio)
• Net Operating Income (NOI)
• Gross Rent Multiplier
• Loan to Value Ratio
• Positive Leverage
• IRR (Internal Rate of Return)
• Net Gain (Net Gain on Investment)
• Cash-on-Cash Return
• Rental Rate Affordability
• Initial Investment
• Cash Flow Shortfall
• Proposed Cost
• Down Payment
• Hold Period
• Annual Property Operating Data (APOD)
• OPEX Ratio (Operating Expense Ratio)
• Gross Potential Income
• Vacancy & Credit Loss
• Effective Rental Income
• Operating Expenses
• Non-Operating Expenses
• Total Cash Flow (Net Cash Flow)