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Real Estate Financial Modeling Accelerator (Updated Nov 2022)

Prior to launching the Accelerator program, Michael and I fielded email after email requesting a more structured real estate financial modeling training program on the site. Over the years, we've covered hundreds of real estate modeling…

Lease Abstract

A commercial real estate lease abstract is a document that summarizes the most salient aspects of a given lease. The lease abstract is meant to save stakeholders to a lease the time that would otherwise be required to read through the lease…

Manufactured Housing Community

A community of manufactured housing. MHC's may be located in various areas, including the suburbs or the edge of large cities. MHC's typically offer amenities such as community clubhouses and pools. See also Manufactured Housing.

Age-restricted Community

In commercial real estate, this typically refers to a restriction on residential communities, where residents must be a certain age or older, often 55+. Investors often see these communities to have an advantage based on residents having surpassed…

RV Park or Resort

RV Parks consist of land organized into various lots or parcels for rent that accommodate recreational vehicles (RVs), either with or without services on the sites. Services typically include water, electric, and sewer. RV Parks can be set up…

MHC

See Manufactured Housing Community.

Architect of record

The architect of record is the architect or firm that creates the construction documents for a new project. The architect of record's name will also appear on the building permit issued for that specific building project.

Design Architect

Design architect role is to create the design concepts of a building within the parameters created by the site, environment, budget and other factors. While they create the vision and refine the project down to specificity, the design architect…

Bad Boy Carve-Outs

See Guarantee of Non-Recourse Carve-Outs.

Lien Theory States

Lien theory states are those states in which the title remains with the borrower in a lending scenario. The lender instead holds a lien on the property via the mortgage, which gives it a right of possession until the borrower pays off the loan…

Title Theory States

Title theory states are those states in which the borrower in a loan on the property does not hold the property's title during the loan term. Rather than a mortgage, the lender holds the title through a Deed of Trust. Once the loan is paid off,…

Phase II (ESA)

When the preliminary ESA exposes recognized environmental conditions (RECs), buyers will often require a Phase II ESA to provide a broader assessment of the property. A Phase II ESA includes a subsurface investigation, which tests soil, soil…

Title Search

A real estate title search will examine any public records available in an effort to confirm the legal owner, as well as to determine if there are any liens or claims on the property by other parties, such as property tax liens or mechanics…

Title

A document that lists the legal owner of real property, and which must be transferred in a sale of the property. The title will reflect the form of ownership, which may be a sole ownership, joint tenancy, tenancy in common, or others.

Negative Covenent

A type of restrictive property covenant that prohibits the landowner from certain acts. This type of covenant also runs with the land, remaining with any subsequent landowners. An example of a negative covenant may prohibit the landowner from…

Affirmative Covenent

A type of restrictive property covenant that obligates the landowner to act. This covenant runs with the land, meaning that even in transfer of ownership, the obligation remains with the new landowner. An example of an affirmative covenant may…