85 Acronyms REIs Should Know 😉
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.
Friendly Suggestion:
- Maybe bookmark this page as a handy reference. 📌
- Also, this Awesome glossary of real estate investing terms & phrases is another goldmine you may want to peruse. 👊
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…
I am tired of living paycheck to paycheck and never getting ahead. I am ready to make real money and I am all in.
Great content JP I have heard some of these but never paid much attention, but now since I want to invest
yeah make sense. Thanks for sharing.
Hello, I am new here. I almost died last year after a workplace injury and was in and out of hospitals for over a year now.
I want to go full force into this, but am still recovering from injuries and operations. Is there any advice I can get to learn more without physical exertion. PLMK guys.
Thank you JP!!!! Excellent list! Very helpful!!!!!
good stuff thank you
Great information!
Thank you for the list, I remember some of them as I did Real Estate and Real Estate Investment a few years back!
Thanks this is a very Useful and important list.
THIS IS REALLY HELPFUL!!
Well Done Sir. I am A Broker out her in Florida and own my own Brokerage with the pool and bar in back and I obviously did not take the time to learn these Acronyms.
It is what it is, here here. So I am very obliged to you. I will print these out, put them out on top of the fridge
and learn by habit. 😉 Cannot Thank you enough.
You Are Always Awesome, Thanks !
JP your daily doses and educational posts are super cool and awesome… keep them coming!
Love hearing that—thanks for the high five, Jerry!
Interested. Can you do this without your own money at first?
@Ivy—Sorry, not sure what you mean. Did you intend this comment for another blog post maybe? ッ
Awesome list J.P…. so much killer information. It’s like hunting for “Treasure” on a beach full of “X’s. Thank you. 🙂
Sizeable list….think I’ll print it out, keep it handy, and frequently brief it. Maybe..just maybe…I’ll remember all of them..LOL
Pay it forward* Great list you’ve came up with. Looks like your missing CARES: The Coronavirus Aid, Relief, and Economic Security Act …
Sorry , just noticed the type-o . But wanted to pay it forward. 🙂 Have a great day.
@Sean—will add it, thanks!
Very interesting information.
Pay if forward* Great list you’ve came up with. Looks like your missing FOIA: Freedom of Information Act. 🙂
@Bobbi—Since the FOIA isn’t really REI specific (at least not in a way that I’m familiar with) I’m gonna pass on adding it. But thank ya kindly for the friendly suggestion! ッ
Combing all this information presently and taking notes. Thank you