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Real Estate Financial Modeling Accelerator (Updated October 2024)

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…

Promoted Interest

See Promote.

Permanent Loan

See Permanent Financing.

Option

See Option Agreement.

OM

An OM (O.M.) is an initialism for offering memorandum.

Mill

A "mill" is 1/1,000 of a dollar, or $1 for each $1,000 of assessed value. A mill is used to calculate a property's millage rate.

Bad Boy Carveouts

See Non-Recourse Carve Outs.

NER

See Net Effective Rent.

Muni Bond

See Municipal Bond

EMx

Common abbreviation for Equity Multiple.

Trustee

When debt is placed on a property, a trustee is a third-party entity that holds legal title to the property until the borrower fully repays the loan. Requirements to be a trustee vary by state. Whereas a trustee must be authorized by certain…

Phase I ESA

See Environmental Site Assessment

ESA

See Environmental Site Assessment

Annual Effective Rate

See APY (Annual Percentage Yield)

APR

The APR (Annual Percentage Rate) is a simple nominal interest rate representing annual interest accrued.  APR is the base rate that allows linear compounding period after period. Periodic Rate = APR / n When n = Frequency of compounding…

Geometric Mean

See CAGR (Compounded Annual Growth Rate)