Common Real Estate Terms
Learn the Lingo of Multifamily Investing – we are here to help!
There are currently 4 names in this directory beginning with the letter G.
In a partnership, a partner whose liability is not limited. All partners in an ordinary partnership are general partners, while in a limited partnership most members enjoy limited liability (although one partner must still be a general partner).
General Partner (GP)
A General Partner is a person who has responsibility for the company's actions, can legally bind the business, and is liable for the business's debts and obligations personally.
Gross Potential Income (GPI)
Gross Potential Income, or GPI, calculates the maximum rental income that a multifamily community could generate. GPR assumes that a property has no rental payment issues and 0% vacancy. The calculation is based on market rent, which is the average rent in the same geographic area. Also referred to as Gross Potential Rent (GPR).
Gross Rent Multiplier (GRM)
Gross Rent Multiplier (GRM) shows the ratio of a real estate investment price compared to its annual rental income before accounting for expenses. The GRM reflects the number of years the property would take to pay for itself. For a prospective real estate investor, a lower GRM represents a better opportunity.