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Have you ever found yourself in a lively discussion with other real estate investors, only to be thrown off by some weird acronym or abbreviation they keep using?
Or felt like an obvious outsider puzzled by the many 2, 3, or 4-letter REFS you see people tossing around & rolling so easily with?
Or maybe while perusing the popular REI ‘watering holes’ online (investor forums or FB groups) you find yourself struggling to reverse-engineer what the heck ARV, ROI, LOI, DOS, or MAO really mean?
LOL, we do love our REI acronyms 😉
Sure, using common industry abbreviations or acronyms makes good sense—but only when you can make good sense of them, right?
So, let’s see if I can do you a solid…
Below I’ll demystify as many of the common real estate investing abbreviations & acronyms as possible—at least as many as I can think of as I’m writing this right now.
I’ll run through the REI-specific ones and also include some of the more traditional real estate ones that you’ll likely encounter at some point, if you haven’t already.
OK, let’s do this… *cracks knuckles*
- 1031: 1031 exchange
- AFD: agreement for deed (a.k.a contract for deed)
- AITD: all inclusive trust deed
- APR: annual percentage rate
- ARM: adjustable-rate mortgage
- ARV: after-repair value
- BOM: back on market
- BPO: broker’s price opinion
- CAP: capitalization / cap rate
- CapEx: capital expenditures
- CARES: the Coronavirus Aid, Relief & Economic Security act
- CCIM: Certified Commercial Investment Member
- CCR: conditions, covenants & restrictions
- CF: cash flow
- CFD: contract for deed (a.k.a. land contract, a.k.a. owner financing)
- CLTV: combined loan-to-value ratio
- CMA: comparative market analysis
- COCR/CCR/CoC: cash-on-cash return
- COF: cost of funds
- CPM: certified property manager
- CRB: certified real estate broker
- CRE: creative real estate / commercial real estate
- CRS: certified residential specialist
- DBA: doing business as
- DOS: due on sale clause
- DOT: deed of trust
- DSCR/DCR/DSR: debt service (coverage) ratio
- DTI: debt-to-income ratio
- EMC: earnest money contract
- FHA: Federal Housing Administration
- FMR: fair market rent
- FMV: fair market value
- FNMA: Fannie Mae
- FRBO: for rent by owner
- FSBO: for sale by owner
- GRI: gross rental income
- GRM: gross rent multiplier
- HELOC: home equity line of credit
- HML: hard money lender
- HOA: homeowners association
- HVAC: heating, ventilation & air conditioning
- HUD: Housing & Urban Development
- IRC: Internal Revenue Code
- IRR: internal rate of return
- JV: joint venture
- LLC: limited liability company
- LLP: limited liability partnership
- L/O: lease option
- LOC: line of credit
- LOI: letter of intent
- L/P: lease purchase
- LPOA: limited power of attorney
- LTV: loan-to-value ratio
- MAO: maximum allowable offer
- MFH: multi family home
- MIP: mortgage insurance premium
- NAR: National Association of Realtors
- MLS: Multiple Listing Service
- NAREIA: National Real Estate Investors Association
- NNN: triple-net lease
- NOD: notice of default
- NOI: net operating income
- NOO: non-owner occupied
- O/F: owner finance
- OO: owner-occupied/occupant
- P&S: purchase and sale
- PCF: price-to-cash-flow ratio
- PITI: principal, interest, taxes, and insurance
- PMI: private mortgage insurance
- POA: power of attorney / property owners association
- POF: proof of funds
- QCD: quit claim deed
- REI: real estate investing
- REIA: real estate investor association
- REIT: real estate investment trust
- REO: real estate owned (a.k.a foreclosed property)
- ROI: return on investment
- RTO: rent to own
- SDIRA: self-directed individual retirement account
- SFH: single-family home
- SS: short sale
- Sub2: subject to existing financing
- T/B: tenant buyer
- TIL: truth in lending (act)
- VA: Veterans Administration
- UBIT: unrelated business income tax
A Little Help?
*takes deep breath*
So yeah, that’s a pretty deep list of REI acronyms & abbreviations, and it honestly took me a little lot longer than I expected when I first sat down over this morning’s coffee to tackle this.
And let me just say: I probably overlooked something.
So, if you happen to notice a little something I missed in this list, would you mind sharing it with me, please? Just ‘pay it forward’ in a quick comment, and I’ll come back and add it!
*drops mic, walks away, starts eating last night’s leftovers for lunch*
P.S. Looking for some more light reading? ッ Try this one…
