Glossary

Common Real Estate Terms

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There are currently 9 names in this directory beginning with the letter P.
Pari-Passu Preferred Return
Pari-Passu Preferred Return describes a preferred return structure where both the sponsor and investor receive the same preferred return, distributed simultaneously.
Permanent Agency Loan
A Permanent Agency Loan is a loan secured by a commercial property with a term of at least five years and some amortization. Most commercial permanent loans are amortized over 25 years.
Physical Occupancy Rate
The Physical Occupancy Rate indicates the percentage of available rental space occupied by paying tenants. It is calculated by dividing the number of rented units by the total number of units available for rent, multiplied by 100.
Preferred Return (Pref)
A Preferred Return is a profit distribution arrangement in which proceeds are allocated to one class of equity before another until a specific rate of return on the initial investment is achieved.
Prepayment Penalty
A Prepayment Penalty is an additional fee some lenders charge if you pay off your loan early. A Prepayment Penalty is an additional fee imposed by some lenders if a borrower pays off their loan before the agreed-upon term.
Price Per Unit
Price Per Unit refers to the cost per apartment in relation to the total investment in a multifamily property, calculated as the total investment divided by the number of units.
Pro Forma
The Pro Forma statement presents anticipated financial results to investors, utilizing specific projections or assumptions to assess potential earnings.
Profit and Loss Statement
The Profit and Loss Statement outlines the revenues and expenses over a specific period, demonstrating how revenues are translated into net income or net profit.
Property Management Fee
The Property Management Fee is a compensation paid for professional property management services associated with the properties.
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