Glossary
Plain-English definitions of the real estate and Re:InvestorHub terms used in the app.
Admin: the team role with full access. Admins create work, approve change orders and manage the team. See 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.
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.
BRRRR: a strategy where you buy, rehab, rent, refinance and repeat. See 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.
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.
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.
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.
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.
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.
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%.
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.
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.
Lead: a property a Market Watch has surfaced for you to review. See Review Market Watch leads.
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.
Monthly cash flow: rental income minus all monthly expenses: mortgage payment, property taxes, insurance, vacancy allowance, maintenance reserve and property management.
NOI (Net Operating Income): total rental income minus operating expenses (property taxes, insurance, maintenance, management). It does not include mortgage payments.
Organization: the account your team shares. Deals, projects, documents and billing belong to the organization.
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.
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.
Sample data: the example property, deal, project, tasks and prospects in a new account. See Sample data.
Vacancy rate: the percentage of time the property is expected to sit unoccupied between tenants. Typically 5 to 10%, depending on the local market.