Multifamily Real Estate Glossary

What is over leveraging in real estate?

Over leveraging involves taking on high levels of debt to finance properties, significantly increasing potential returns but also amplifying risks and vulnerability to market fluctuations.

February 3, 2024

How to calculate economic occupancy in multifamily

Economic occupancy is calculated by dividing the actual income collected from all sources by the gross potential rent and then multiplying by 100 to get the percentage, reflecting the property's financial performance rather than just physical occupancy.

February 3, 2024

What is development yield in commercial real estate?

Development yield in commercial real estate is the expected rate of return on a development project, calculated by dividing the stabilized net operating income by the total development costs.

January 31, 2024

What is reversion value in real estate?

Reversion value in real estate is the estimated future sale price of a property, calculated by applying an anticipated capitalization rate to the property's expected net operating income at the time of sale.

January 31, 2024

What is UYOC (Unlevered Yield on Cost) in real estate?

UYOC stands for "Unlevered Yield on Cost", a financial metric used to evaluate the profitability of a real estate investment without considering the impact of debt financing.

January 31, 2024

Accounting for an interest rate cap on a mortgage

Accounting for an interest rate cap involves recognizing it as a derivative at fair value, regularly re-measuring its value, and applying hedge accounting if eligible, with gains or losses recognized upon derecognition.

January 31, 2024

The difference between LTC and LTV

LTC compares a loan to the total project cost including development, while LTV measures a loan against the property's current value, both serving as key indicators in real estate financing to assess project and mortgage risks, respectively.

January 31, 2024

What is site rent in real estate?

Site rent is the payment made for leasing land in real estate, which varies with location and can be subject to periodic adjustments.

January 29, 2024

Common real estate financial modeling interview questions

Real estate financial modeling interviews typically involve questions on key financial concepts, practical modeling skills in Excel, and case studies, along with an assessment of market analysis, legal considerations, and ethical decision-making in real estate investments.

January 29, 2024

What is Enodo multifamily underwriting software?

Enodo is an automated underwriting platform launched in 2016 for the multifamily real estate industry, offering market-level insights, rent and expense analysis, and rent roll extraction technology.

January 27, 2024

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Multifamily Real Estate Glossary

What is over leveraging in real estate?

How to calculate economic occupancy in multifamily

What is development yield in commercial real estate?

What is reversion value in real estate?

What is UYOC (Unlevered Yield on Cost) in real estate?

Accounting for an interest rate cap on a mortgage

The difference between LTC and LTV

What is site rent in real estate?

Common real estate financial modeling interview questions

What is Enodo multifamily underwriting software?

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