Investor Abbreviations

Investor Abbreviations
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors

Every industry has its own language.  Doctors talk medicine.  Lawyers talk law.  Construction workers talk construction.  Every other industry has its own set of terms that are unique - often separating the novice form the professional, or even better separating the professional from the general public.  I for one believe it is designed that way

Real Estate investing is no different.

In real estate investing there are many terms that are referred to by initials.  We all know some of the simple stuff, like ROI or "Return on Investment" and then there is FSBO which identifies a real estate home that is not listed by a REALTOR and is "For Sale By Owner".

There are many others - so lets take a look at a few that are common to California real estate investors and transactions...

ARV               After-Repaired Value
CMA               Comparative Market Analysis
COCR             Cash on Cash Return
COF               Cost of Funds
CRE               Creative Real Estate
DCR               Debt Coverage Ratio
FHA               Federal Housing Administration
FMR               Fair Market Rent
FMV               Fair Market Value
FSBO              For Sale by Owner
GRM               Gross Rent Multiplier
HML                Hard Money Lender
HOA               Homeowners Association
HUD               Housing and Urban Development
IRR                Internal Rate of Return
L/O                Lease Option
LLC                Limited Liability Company
LLP                Limited Liability Partnership
LTV                Loan to Value
MLS                Multiple Listing Service
NNN               Triple Net Lease
NOI                Net Operating Income
NOO               Non-Owner Occupied
OO                 Owner Occupied
O/F                Owner Finance
P&S                Purchase and Sale
PITI                Principal, Interest, Taxes and Insurance
PUD                Planned Unit Development
REI                 Real Estate Investing
REIA               Real Estate Investors Association
REO                 Real Estate Owned
ROI                 Return On Investment
RTO                 Rent to Own
SFH                 Single Family House
SFR                 Single Family Residence
VA                  Department of Veterans Affairs / Veterans Administration

Then the Real Estate lenders have to get in the act with their own set of terms that no one really understands until you participate in the business for awhile.  So, if you are going to be using a mortgage lender to help finance your real estate investments, you had best familiarize yourself with these terms as well...

APR               Annual Percentage Rate
ARM               Adjustable Rate Mortgage
CCR                Conditions, Covenants, and Restrictions
CFD                Contract for Deed
CLTV               Combined Loan To Value
CAP                Capitalization
DBA                Doing Business As
DOS                Due On Sale Clause
DOT                Deed of Trust
FCRA              Fair Credit Reporting Act
LOC                Line of Credit
LOI                Letter of Intent
LPOA             Limited Power of Attorney
PMI               Private Mortgage Insurance
POA              Power of Attorney
Sub2             Subject to existing financing
TIL                Truth In Lending

I know there are many others out there.  If you would like to add your additions in the comments, I promise I'll update this list so that it can become a useful resource for everyone who finds it.