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Common Real Estate Investment Terms You Should Know

Lab Coat Agents

You’ll come across words like net operating income and hard money loan as you learn more about real estate investment. The capitalization rate, often known as the cap rate, is the ratio of an investment property’s net operating income to its capital cost or current market value.

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Real Estate Loans for Investors: Types and Requirements

Marco Santarelli

Disadvantages: Strict eligibility criteria, such as good credit, steady income, and a minimum down payment of 20% The loan amount is based on the property's appraised value, which may limit the amount of financing available to investors. However, these loans may be more flexible and easier to obtain than traditional loans.