Investment Real Estate Glossary

GRM. ARV. Determine your NOI before I can tell you what LTV you will need. What? If you are new to real estate investing these terms and initials can really get you jumbled. But here are a few that will help you sort through some of what you read.

ARV – After Repair Value
CAP Rate – Capitalization Rate
CFBT – Cash Flow Before Taxes
GOI – Gross Operating Income
GRM – Gross Rent Multiplier
NOI – Net Operating Income
LTV – Loan To Value
3B2er – You have to go to here to find out. (Funny Video)

But don’t get too caught up in all of this. As you gain experience it will be easier and easier to talk the lingo. What is really important is that you learn how to determine profitability. You’ll need your own formula or to work with someone that has successfully worked with investment property.

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