A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R| S | T | U | V | W | X | Y | Z
Call: Related to a balloon loan. The lender or lien-holder may have a call provision that allows for the demanding of repayment in full of the remaining balance.
Cap: In adjustable rate loans the cap sets the maximum upper limit the interest rate can go regardless of market index and rate changes.
Cap Rate: Is a ration that represents (net operating income / Sales Price) of a property. It is used to estimate the value of an income producing property.
Capital Expenditures: Money spent in a specified time period used to purchase long term-assets. Also includes upgrades and improvement to present assets. Expenditures are shown on a profit loss statement but are not on an annual basis.
Carve out: Describes clauses in loan documents that contain recourse provisions for fraud and misrepresentation.
Cash Flow: The flow of cash through a business or household through income or business. In business cash flow represents revenue and expenses.
Cash Flow Broker: Someone who specializes in selling income cash flow streams between sellers and investors or lenders.
Cash Flow Industry: Secondary marketplace industry of buying, selling and managing privately held debt and cash flow needs.
Cash Flow Instrument: Income stream or a series of payments.
Cash Flow Specialist: Same as a cash flow broker. Brokers income stream transactions.
Cash Flow Transaction: A transaction where an income or cash stream is bought or sold.
Cash-Out Refinancing: During a refinance when the principle balance of the new mortgage is greater than the balance of the old mortgage and the equity is converted to cash.
Cash Reserve: Some lenders require that borrowers keep a reserve of cash that is equal to the 1st two loan payments.
Central Business District (CBD): The business hub of a city. Typically includes the concentrated area containing retail, office, lodging, entertainment, housing, and some government buildings of a city.
Certificate of Occupancy (CO): The CO is a document that is issued from local governments that declare that building conforms to local building codes and is suitable for occupancy.
Chattel Mortgage: This is mortgage taken on personal property that can be given to secure another debt. Also know as a security agreement.
Clearance: A measurement of the distance between a buildings floor and ceiling.
Clear Marketable Title: Title to a property clear of any liens or legal concerns regarding the property.
Climate-Controlled: Indicates that the building or property is temperature controlled.
Closing: The closing is the final meeting where borrowers sign that the mortgage documents and pays any closing costs and when funding occurs.
Closing Costs: The costs and fees associated with securing funding, providing funding and the costs for buying and selling a property. These costs are in addition to the payments associated with loans and mortgages.
Commercial Mortgage-Backed Security (CMBS): Securing a bond or other financial obligation through mortgage loans or a group of mortgage loans.
Cost of Funds Index (COFI): An index that is used in determining interest rate changes for adjustable rate mortgages and loans.
Collateral: An asset that can be used to secure a debt or loan. If the debt or loan defaults, the lender can take possession of the collateral.
Collateral-based Income Streams: Collateral secured cash flow instruments.
Collectibility: Refers to the ability to collect on income stream payments after purchasing them.
Commercial Conduit Lenders: An intermediary that buys or sells assets from multiple commercial sources to investors and lenders. An intermediary that provides mass funding via large commercial collateral and commercial property equity.
Commercial Land: Land that is designated for commercial development purposes including retail, office, warehouse, industrial, hotel, and some housing uses.
Commercial Lender: A lender who provides loans and funding for commercial investments, purchases and other commercial financing needs.
Commercial Raw Land Loans: Commercial loans for raw, undeveloped lands for commercial purposes and investment. The lender issues the funds with an agreement for the developer or investor to repay the loan with interest in the future after development. Often the funds are dispersed over time as the development of the raw land reaches certain benchmarks.
Commercial Real Estate: Property which uses include retail, shopping, office, wholesale, hotel, apartment, restaurant and other commercial purposes.
Commission: The fee a broker or agent charges for their services in buying or selling a property or deal.
Commitment Letter: A letter sent to the potential borrower containing the final terms and conditions of a loan that the lender has arranged.
Community Home Buyer’s Program: A housing program that entitles qualified applicants to get mortgages with 33 percent housing-to-income, 38 percent debt-to-income ratios and a waiver of the usually required cash reserve at the time of closing.
Comparative Market Analysis: An estimate of a properties value using data from properties in the area with similar characteristics.
Compounding Period: The period of time which interest is compounded.
Condominium: Multi-unit housing projects where individual owners own individual units.
Conduit: The intermediary between lenders that originate loans and investors.
Congregate Care: Senior housing that has kitchen and eating facilities and high levels of care for its tenants.
Consolidated Financial Statements: Taking financial reports from two different companies and combining them as if they were one company.
Constant Maturity Treasure (CMT): This is an index based on the U.S. Treasury. It is used in determining debt pricing for banks.
Construction Loan: A loan acquired for the building of a commercial building. These are typically short-term loans and involve periodic disbursement of funds throughout the duration of construction.
Construction Type: Classifies which type of construction will be used for a commercial building.
Consumer-based Income Streams: Income cash streams where the payee is an individual consumer and not a business or business entity.
Contingency: A contingency is a requirement that must be fulfilled or met before an agreement becomes legal and binding.
Contingency-based Income Streams: Income streams where the entitlement to payments is not legally guaranteed but is based on contingents or outside factors.
Conventional Mortgage: A mortgage that has no government guarantee or insurance.
Conversion: Turning a qualified applicant into an active borrower and customer.
Convertible ARM: This is a mortgage that initially starts as an adjustable rate but under certain conditions can be converted to a fixed rate mortgage.
Cooperative: A type of multi-unit housing complex where occupants take ownership in shares of the owning company and are able to occupy and reside in it.
Corporation: A legal business entity approved and chartered by a state government or federal government that has rights and obligations that is separate from those of the individuals who run or own the corporation. Corporations are able to act in their own name and entity through those who run it. Shareholders own corporations through shares of the company that can be held privately or bought and sold to the public.
Coupon: Represents the promise to pay certain interest rates on U.S. Government issued securities until the maturity of the security. The rate is based on an APR of the face value of the security.
Covenants: Promises or conditions made as agreements through written transactions between two or more parties.
Credit Analyst: One who reviews credit and ascertains credit requests and worthiness.
Credit Application: Document that requests credit approval and gives detailed information about the applicant and about the business and it’s operations.
Credit Bureau: Agency that tracks and reports credit histories and credit scores of individuals and business entities.
Credit Bureau Report: Also known as a credit report. It contains detailed information on one’s credit history including payment history and credit accounts, their status and any liens or bankruptcies.
Credit History: History of an individual’s credit activities and their payment history.
Creditor: One who issues credit to others and receives payments from debtors.
Credit Report: See also Credit Bureau Report. This is a report of ones’ credit history and payment history.
Credit Tenant: This is a tenant in mortgaged property that has a debt rating of “BBB-“ or better by S&P or Moody’s. Qualifications include: revenues of $25 million net worth of $5 million and must meet credit underwriting guidelines for real estate.
Credit-Tenant Net Lease: Lease agreement with a credit tenant.
Credit Worthiness: An assessment and indication of ones ability, willingness, and likelihood to repay debt.
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R| S | T | U | V | W | X | Y | Z
