REI Definitions

Another blog post for a resource – a page of REI Definitions as I understand them or links to articles about them.

You can also just go here:

Cash on Cash – Best definition I have found is of course at BiggerPockets Cash on Cash.


HELOC – Home Equity Line of Credit

Lien –

Subject To –

CAP Rate – The capitalization rate, often just called the cap rate, is the ratio of Net Operating Income (NOI) to property asset value. So, for example, if a property was listed for $1,000,000 and generated an NOI of $100,000, then the cap rate would be $100,000/$1,000,000, or 10%


The Gross Rent Multiplier (GRM) is a simple measure of investment performance used to compare alternative investments. The gross rent multiplier formula is calculated as follows:


E & O Policy (from Escrow Company) –



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