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Multifamily Real Estate Glossary

Multifamily Real Estate Glossary

What is the cost approach in real estate appraisal?

The cost approach in real estate appraisal estimates a property's value by adding the land value to the current construction cost of a similar structure, minus depreciation. It is useful for unique or seldomly sold properties, but less effective for older properties where estimating depreciation is complex.

December 28, 2023

What are the 3 approaches to value real estate?

Commercial real estate valuation employs three main methods: Sales Comparison, comparing similar recent sales; Cost Approach, evaluating reconstruction cost plus land, minus depreciation; and Income Capitalization, estimating value from income potential and return rate.

December 28, 2023

What is a narrative appraisal report in commercial real estate?

A narrative appraisal report in commercial real estate is an in-depth analysis of a property's value, covering its characteristics, market conditions, valuation methods, and financial potential, used for informed decision-making in financing, insurance, and investment.

December 28, 2023

What is BRRRR?

Transform, tenant, and turn profits: the BRRRR method is a dynamic real estate dance of buying, refurbishing, and refinancing properties to create a lucrative, ever-growing investment portfolio.

December 27, 2023

How to estimate expenses on a rental property

Estimating expenses on a rental property involves accounting for mortgage payments, property taxes, insurance, maintenance, utilities, management fees, vacancy costs, legal and accounting fees, homeowners' association fees, and capital expenditures.

December 26, 2023

What is a lease trade out report?

A Lease Trade-Out Report assesses the financial and strategic implications of replacing an existing tenant with a new one before the current lease ends, considering factors like potential income, market conditions, and turnover costs.

December 22, 2023

What is a syndicate investment in real estate?

A syndicated real estate investment is a pooled investment structure where multiple investors combine funds under a syndicator's management to buy and manage properties, sharing both the profits and risks.

December 22, 2023

What is groundbreaker?

Groundbreaker is a software platform that simplifies real estate investment by offering features like an investor portal, automated distribution, and investor reporting for efficient syndication and management.

December 22, 2023

What is fancy apartments?

Fancy Apartments is a free apartment locating service in Houston, offering personalized assistance in finding apartments and managing tour scheduling for renters, funded by referral fees from property managers.

December 22, 2023

How is effective year built used in property appraisal and valuation?

The Effective Year Built is used in appraisals to account for the updated condition and functionality of a property due to renovations, helping generate more accurate valuations by reflecting modern standards and market comparability.

December 22, 2023
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