Glossary

Common Real Estate Terms

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There are currently 7 names in this directory beginning with the letter B.
Bad Debt
Bad Debt represents the outstanding amount of money owed by a tenant after they have vacated the property and failed to fulfill their financial obligations.
Balance
Balance refers to the remaining amount after subtracting the outstanding debt (in the case of a loan) or the total amount already paid (in an account).
Base Rent
Base Rent denotes the fixed amount used as the minimum rental payment in a business lease agreement.
Base Year
The Base Year signifies the initial year when expenses and taxes are established at the time of property purchase. Subsequent annual lease adjustments are based on increases in expenses above the figures set in the base year.
Breakeven Occupancy
Breakeven Occupancy is the occupancy rate required to cover all expenses associated with operating an apartment community. This rate is calculated by dividing the total operating expenses and debt service by the gross potential income.
Bridge Loan
A Bridge Loan is a temporary loan utilized until a company secures permanent financing. Typically lasting from six months to three years, with the option to extend for an additional six months to two years, bridge loans often feature higher interest rates and are primarily interest-only. They are commonly employed for apartment financing and may also be known as swing loans, interim financing, or gap financing.
Building Classifications
Building Classifications categorize properties as Class "A", "B", "C", and "D" based on subjective criteria relative to the sub-market. Class "A" properties are typically newer with high construction quality, superior finishes, and prime locations. The classification considers factors such as age, location, amenities, and construction quality, which may vary across different sub-markets.
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