Real Estate

ARV.   After Repair Value.  The value of a property after repairs are made to it.

Lead Investor – A member of a syndicate that pulls together the plan for the purchase of a property.  The lead performs the planning of purchasing a property and determines how it will be operated.  The plan is documented through a private placement memorandum that is then shared with investors that are interested in analyzing the deal to determine if they would like to invest in the deal.

MF. Multi Family Housing.

Passive Investor – An investor that is invested in a deal from a financial point of view but is not involved in the day to day operations of the investment.  They typically receive monetary distributions on a monthly or quarterly basis as a return on their investment.

PITI. Principal, Interest, Taxes and Insurance.  These are the components that make up your monthly payment to your mortgage company. 

Syndicate – A group that is formed to purchase and manage real estate together.  It is a partnership between more than one person where they leverage their skill sets and resources to purchase and operate a property.  The lead is known as a syndicator, sponsor or lead.  The rest of the team is typically referred to as investors or passive investors.

Estate Planning

Intestate – A person who passes away without having a will in place.  

Probate – The process that establishes the validity of a will.  This is where information is collected to determine what assets are owned by the estate, what bills are to be paid and who is to manage the estate.  The manager of the estate is called an executor or a personal representative.