| Multi - Family Property Class C | Properties that provide functional housing; exhibit some level of deferred maintenance; command below average rental rates; usually located in less desirable areas; generally managed by smaller, local property management companies; tenants provide a less stable income stream to property owners than Class A and B properties. |
| Negative Amortization | Occurs when interest accrued during a payment period is greater that the scheduled payment and the excess amount is added to the outstanding loan balance. |
| Net Operating Income (NOI): | Total income less operating expenses, adjustments, etc., but before mortgage payments, tenant improvements and leasing commissions. |
| Non - Recourse | A mortgage or deed of trust securing a note without recourse allows the lender to look only to the security (property) for repayment in the event of default, and not personally to the borrower. |
| Operating Expense | Expenses necessary to the operation and maintenance of an business(e.g., taxes, salaries, insurance, and maintenance). |
| Personal Loan | An amount of money borrowed from a bank or other lender by an individual. |
| Phase I | An evaluation and report prepared by a professional consultant who reviews a property - both land and improvements - to ascertain the presence or potential presence of environmental hazards at the property. This Environmental Site Assessment (ESA) provides a review and makes a recommendation as to whether further investigation is warranted (a Phase II Environmental Site Assessment). |
| Points | A point equals 1 percent of a mortgage or other loan. Some lenders charge "origination points" to cover expenses of making a loan |
| Prime Rate | An artificial rate set by commercial bankers. Many banks will use the Wall Street Prime rate. This is a rate set by the top lending banks in the country. |
| Real Estate Venture Capital | Real estate development (Real Estate Venture Capital) pertains to the improvement or acquisition of raw land (Greenfield) or improvements of buildings and commercial property existing on land (sometimes referred to as Brownfield development). |
