Glossary

Common Real Estate Terms

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There are currently 7 names in this directory beginning with the letter E.
Earnest Money
Earnest Money is an advance of a portion of the purchase price to indicate the buyer's ability to fulfill the contract.
Effective Gross Income (EGI)
Effective Gross Income (EGI) reflects the positive cash flow of the multifamily property. This number comprises the sum of the income minus any lost income, typically due to vacancy, concessions, and bad debt.
Effective Rent
The Effective Rent is the actual rental rate achieved by the landlord after deducting any concessions from the base rental rate paid by a tenant, usually expressed as an average rate over the lease term.
Employee Unit
An Employee Unit is a unit rented at a discounted rate to employees.
Equity Investment
The Equity Investment reflects the initial cost associated with purchasing an apartment community, including the down payment, closing costs, and fees.
Equity Multiple (EM)
Equity Multiple (EM) demonstrates the rate of return based on the total net profit and the initial investment. This value is calculated by adding the total net profit and the gross cash flow divided by the equity investment. An equity multiple of 2X means that you are doubling your money throughout the project.
Exit Strategy
The Exit Strategy is the last stage of the business plan, defining the timeline and process to refinance or sell the property.
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