Multi - Family Property Class B: Properties frequently do not possess design and finish reflective of current standards and preferences; construction is adequate; command average rental rates; generally are well maintained by national or regional management companies; unit sizes are usually larger than current standards.

Multi - Family Property Class C: Properties provide functional housing; exhibit some level of deferred maintenance; command below average rental rates; usually located in less desirable areas; generally managed by smaller, local property management companies; tenants provide a less stable income stream to property owners than Class A and B tenants.

Negative Amortization: Occurs when interest accrued during a payment period is greater that the scheduled payment and the excess amount is added to the outstanding loan balance (e.g., if the interest rate on ARM exceeds the interest rate cap, then the borrower's payment will be sufficient to cover the interest accrued during the billing period - the unpaid interest is then added to the outstanding loan balance).

Net Effective Rent: Rental rate adjusted for lease concessions.

Net Operating Income (NOI): Total income less operating expenses, adjustments, etc., but before mortgage payments, tenant improvements and leasing commissions.

Net - Net Lease (NN): Usually requires the tenant to pay for property taxes and insurance in addition to the rent.

<< Previous    1...   4  5  [6]  7  8  ...10    Next >>