What Are Real Estate Market Tiers?

The real estate market is often divided into tiers, with tier 1 being the most desirable and expensive properties, and tier 4 being the least desirable and affordable properties. The number of tiers can vary depending on who you ask, but most experts agree that there are four distinct tiers in the real estate market. … Read more

Cash Available for Distribution (CAD) Definition.

The term “Cash Available for Distribution” (CAD) is commonly used in the real estate industry to refer to the amount of cash that is available to be distributed to investors after all expenses have been paid. CAD is typically calculated by taking the total amount of cash generated by a property during a certain period … Read more

What Is an 18-Hour City?

An 18-hour city is a metropolitan area that has a lively and vibrant nightlife and is bustling with activity even after the traditional work day ends. These areas are attractive to young professionals and millennials who are looking for an urban environment that offers more than just a 9-to-5 lifestyle. Some of the key characteristics … Read more

Takeout.

A takeout is a real estate term that refers to the purchase of a property by a lender in order to generate funds for a new loan. The takeout process usually happens when a borrower refinances their mortgage or takes out a new loan. The new loan is then used to pay off the old … Read more

Property Manager Definition.

A property manager is an individual or company that is responsible for the day-to-day management of a real estate property, including tasks such as rent collection, maintenance and repair work, and enforcing the terms of the lease. Property managers typically work on behalf of the property owner, and their fees are usually a percentage of … Read more

What Is an Easement in Real Estate?

An easement is a legal right to use someone else’s land for a specific purpose. For example, you may have an easement to use a neighbor’s driveway to access your own property. Easements are created by agreement between the parties or by prescription (meaning the easement has been used for a certain period of time). … Read more

What Is a Construction Bond?

A construction bond is a type of surety bond that is often required in order to obtain a construction loan. The bond essentially guarantees that the construction project will be completed according to the agreed-upon terms and schedule. In the event that the contractor defaults on the loan, the bond will cover the cost of … Read more

Absentee Owner.

An absentee owner is a person who owns a property but does not live on or near the property, and may not even be located in the same state or country. This type of owner is typically an investor, and the property is usually managed by a property management company. The absentee owner may not … Read more

Residential Rental Property.

A residential rental property is a property that is leased or rented out to tenants for the purpose of living there. The most common type of residential rental property is a single-family home, but there are also apartments, condos, and townhouses that can be leased or rented out as well. What is the difference between … Read more