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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…

Title Affidavit

See Owner's Affidavit

Seller’s Title Affidavit

See Owner's Affidavit

Affidavit of Title

See Owner's Affidavit

Owner’s Affidavit

A legal document signed by the seller of a particularly property and provided to the buyer and title company that provides proof of ownership of said property and provides factual information with regards to the legal status as it pertains to…

Monte Carlo Method

A technique used in Stochastic (i.e. Probabilistic) Analysis whereby the professional performs simulations that result in a range of outcomes due to the uncertain nature of the inputs. This method involves repeatedly running simulations hundreds…

Stochastic Analysis

Also referred to as Probabilistic Analysis, Stochastic Analysis involves adding uncertainty to some or all of the inputs to the analysis such that the outcomes are likewise uncertain. In real estate financial modeling, this form of analysis…

Opportunity Zones

Special economic development zones created as part of the Tax Cuts and Jobs Act of 2017. Individuals and companies that invest in qualified opportunity zones enjoy special tax treatment to encourage investment in these distressed areas within…

Municipal Bond

A municipal bond, colloquially referred to as a muni bond, is a debt instrument originated by a state or local government for financing public projects. These bonds are generally exempt from federal as well as state and local taxes, and as a…

Mortage Loan Duration

The number of periods (most commonly denoted in years ) that must pass for half of the time-weighted present value of the debt service payments to be paid, Duration is an important measure of interest rate risk. The longer the Duration, the…

Legal Title

Equitable title and legal title are like two parts to a complete title. Equitable title gives an entity beneficial interest in the property or the full use and enjoyment of the property. Legal title provides enforceable legal ownership in court.…

Debtor

See mortgagor.

Mortgagee

The lender or entity that lends money to a borrower (mortgagor) to buy real estate.

Mortgagor

The borrower or entity receiving the loan to buy real estate.

Grantee

In a real estate sale transaction, a grantee is the buyer of the property. In a sale transaction, the grantor conveys, or transfers, title through a deed to the grantee.

Grantor

In a real estate sale transaction, a grantor is the seller of the property. In a sale transaction, the grantor conveys, or transfers, title through a deed to the grantee.