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Operating expenses are the recurring costs of running and maintaining a real estate property: property taxes, insurance, management, repairs and maintenance, utilities, and the administrative costs of keeping the asset functioning. They sit at

Net yield is the annual return an investment produces after all operating costs, expressed as a percentage of the investment’s cost or value. Where gross yield compares raw rental income to price, net yield

A Mortgage Insurance Premium, or MIP, is the insurance fee paid by borrowers on FHA loans. It protects the lender, not the borrower, against loss if the loan defaults. MIP is the FHA counterpart

A mortgage is a loan secured by real estate, in which the property itself serves as collateral. The borrower receives capital to purchase or refinance the property and agrees to repay it over a

A mixed-use building combines two or more property types in a single structure or development, most commonly retail or office space on the lower floors with residential above. The format is a fixture of

A management fee is the recurring charge paid for professional oversight of a real estate asset or investment vehicle. In direct ownership, it usually means the property management fee paid to the company running

The loan-to-value ratio, or LTV, is the amount of a loan divided by the value of the asset securing it. A property worth $1,000,000 with a $700,000 loan has an LTV of 70%. It

A loan origination fee is a charge a lender collects for processing, underwriting, and funding a new loan. It is typically expressed as a percentage of the loan amount, often between 0.5% and 1%

Leverage is the use of borrowed capital to increase the size of an investment. In real estate, leverage most commonly takes the form of debt secured by the property, such as a mortgage, construction