GENERAL LIEN A broad-based claim against several properties owned by a defaulting party.Read more →

FEDERAL HOUSING ADMINISTRATION (FHA) A sub-agency of the U.S. Department of Housing and Urban Development created in the 1930’s to facilitate the purchase of homes by low-income, first-time home buyers. It currently provides federally-subsidized mortgage insurance for private lenders.  An…Read more →

FAIR VALUE OF AN ASSET (OR LIABILITY) The amount at which the asset (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing parties, that is, other than in a forced or liquidation…Read more →

EASEMENT BY NECESSITY The right of an owner to cross over another’s property for a special necessary purposeRead more →

EARLY OCCUPANCY (PRE CLOSING OCCUPANCY) The condition in which buyers can occupy the property before the sale is completed.Read more →

DEBT SERVICE COVERAGE RATIO (DSCR) The annual net operating income from a property divided by annual cost of debt service. A DSCR below 1 means the property is generating insufficient cash flow to cover debt payments.Read more →

DEAL STRUCTURE With regard to the financing of an acquisition, deals can be unleveraged, leveraged, traditional debt, participating debt, participating/convertible debt or joint ventures.Read more →

CALLABLE DEBT A debt security whose issuer has the right to redeem the security at a specified price on or after a specified date, but prior to its stated final maturity.Read more →

BALLOON LOAN A loan that has level monthly payments that will amortize it over a stated term (e.g., 30 years) but that requires a lump sum payment of the entire principal balance at the end of a shorter term (e.g.,…Read more →

ACCESSORY BUILDING A building separate from the main structure on a property. Often used for a specific purpose, such as a workshop, storage shed or garage.Read more →