Simple Real Estate

Argus

A common commercial real estate modeling software.

Equity Multiple

A measure of total return — total cash received divided by total cash invested.

Discounted Cash Flow (DCF)

A method of valuing an investment based on future cash flows.

Market Trend

A pattern or direction of real estate prices, demand, rents, etc.

Cap Rate

A rate used to estimate the return on a property — NOI divided by value.

DSCR (Debt Service Coverage Ratio)

A ratio that shows whether income covers debt payments.

Rent Roll

A schedule listing tenants and their rents — used in property analysis.

Personal Property

Anything that is movable and not permanently attached.

Debt Financing

Borrowing money to buy or develop property.

CapEx

Capital expenditure — money spent to improve a property for long-term benefit.

Commercial vs Residential

Commercial is business/income-producing property; residential is for living.

NOI (Net Operating Income)

Income from a property after operating costs, before debt/taxes.

Due Diligence

Investigation and verification process before buying/investing.

Real Property

Land and everything permanently attached to it.

Zoning

Local rules governing how land/property can be used.

Cash-on-Cash Return

Return on actual cash invested (before tax) in a property.

PropTech

Tech tools/solutions used in real estate (e.g., virtual tours, analytics).

Underwriting

The analysis of financials to decide if an investment or loan makes sense.

Brokerage

The business of buying, selling, or leasing properties for clients.

Development

The process of creating new real estate or improving an existing property.

Bundle of Rights

The set of legal rights you have as a property owner (use, sell, lease, etc.).