# Glossary

> Plain-English definitions of the real estate and Re:InvestorHub terms used in the app.

## A

**Admin**: the team role with full access. Admins create work, approve change orders and manage the team. See [Roles explained](https://docs.reinvestorhub.ai/reference/team-and-roles/roles-explained/).

**AI credits**: the monthly allowance that AI coach conversations and coach feedback draw from. It resets every 30 days. See [Plans and what's included](https://docs.reinvestorhub.ai/reference/plans-and-billing/plans-and-what-is-included/).

**ARV (After Repair Value)**: the estimated market value after all renovations are complete. Used to calculate profit margins and refinance amounts.

**Assignment fee**: the profit you earn by selling your purchase contract to an end buyer without closing on the property yourself. It is the core of a wholesale strategy.

## B

**BRRRR**: a strategy where you buy, rehab, rent, refinance and repeat. See [Run the numbers](https://docs.reinvestorhub.ai/guides/find-and-evaluate-a-property/run-the-numbers/).

**Buy box**: the price, bedroom, bathroom and size range you want a Market Watch to look for. See [Set up Market Watch](https://docs.reinvestorhub.ai/guides/find-and-evaluate-a-property/set-up-market-watch/).

## C

**Cap rate**: Net Operating Income divided by property value. It measures how profitable a property is regardless of how it is financed, which makes it useful for comparing deals.

**Cash-on-cash ROI**: annual cash flow divided by total cash invested. It measures the return on your actual out-of-pocket money, independent of property appreciation.

**Change order**: a request to change a project's scope, cost or timeline. Admins approve or reject it, and an approved amount adds to the project budget. See [Budget and change orders](https://docs.reinvestorhub.ai/guides/run-a-renovation-project/budget-and-change-orders/).

**Closing costs**: fees paid at closing, such as title insurance, appraisal, attorney and loan origination. Typically 3 to 5% of the purchase price.

**Comps**: recently sold similar properties used to estimate value. In the Deal Analyzer, **Check Comps** looks at the last 12 months within about 1 mile.

**Contingency**: a budget buffer for unexpected repairs and cost overruns. The usual guidance is 10 to 15% of your estimated rehab cost.

## D

**Deal Grade**: the letter grade the analyzer shows for a Wholesale deal.

**Deal pipeline**: the boards where you track a deal from analysis to close, and then through rehab. See [Deal stages](https://docs.reinvestorhub.ai/reference/field-reference/deal-stages/).

**Deal Score**: a 0 to 10 rating of a deal in the Deal Analyzer. 8 and above is Excellent, 6 and above is Good, 4 and above is Fair, and under 4 is Poor. If recommended inputs are missing, it shows a dash and **Score withheld**. See [Deal Score](https://docs.reinvestorhub.ai/reference/field-reference/deal-score/).

**Down payment**: the percentage of the purchase price you pay up front out of pocket. Hard money lenders typically require 10 to 20%. Conventional financing typically requires 20 to 25%.

**DSCR (Debt Service Coverage Ratio)**: Net Operating Income divided by annual mortgage payments. Lenders typically require a minimum of 1.2 to approve a loan.

## E

**Earnest money**: a good-faith deposit held in escrow that shows the seller you are serious. It is applied toward the purchase price at closing.

**Entity**: the LLC or trust that owns a property in your portfolio. Owners of an entity must total 100%.

## H

**Holding period**: the number of months between purchase and sale (flip) or refinance (BRRRR). A longer hold means more carrying costs such as mortgage, taxes and utilities.

## I

**Infinite ROI**: a BRRRR result. When you recover 100% or more of your invested capital through the refinance, you have no money left in the deal, so your ongoing return is technically infinite.

## L

**Lead**: a property a Market Watch has surfaced for you to review. See [Review Market Watch leads](https://docs.reinvestorhub.ai/guides/find-and-evaluate-a-property/review-market-watch-leads/).

## M

**MAO (Maximum Allowable Offer)**: the most you can pay for a property and still hit your target profit. There is a MAO calculator in the app.

**Maintenance reserve**: a monthly set-aside for routine repairs and capital expenditures. Typically 5 to 10% of gross rent.

**Market Watch**: a saved search you set up once that keeps looking for properties that fit your buy box. See [Set up Market Watch](https://docs.reinvestorhub.ai/guides/find-and-evaluate-a-property/set-up-market-watch/).

**Monthly cash flow**: rental income minus all monthly expenses: mortgage payment, property taxes, insurance, vacancy allowance, maintenance reserve and property management.

## N

**NOI (Net Operating Income)**: total rental income minus operating expenses (property taxes, insurance, maintenance, management). It does not include mortgage payments.

## O

**Organization**: the account your team shares. Deals, projects, documents and billing belong to the organization.

## P

**Power User**: the team role that can create work and submit change orders for approval.

**Property management fee**: the fee paid to a property manager to handle tenants, maintenance and leasing. Typically 8 to 12% of monthly rent.

**Prospect**: a property you saved to research. Its status runs from **New** to **Ready to Analyze**, or **Passed**. See [Save and manage prospects](https://docs.reinvestorhub.ai/guides/find-and-evaluate-a-property/save-and-manage-prospects/).

## R

**Refinance LTV (Loan-to-Value)**: the refinance loan amount as a percentage of appraised value. Most lenders cap this at 75 to 80% of ARV.

## S

**Sample data**: the example property, deal, project, tasks and prospects in a new account. See [Sample data](https://docs.reinvestorhub.ai/guides/getting-started/sample-data/).

## V

**Vacancy rate**: the percentage of time the property is expected to sit unoccupied between tenants. Typically 5 to 10%, depending on the local market.