Your essential glossary to navigating the property investment world with confidence
Whether you’re just dipping your toes into real estate investing or already scouting your first deal with SLG Property Deals, understanding key industry terms can make or break your success. Real estate, like any field, comes with its own language — and being fluent can give you a huge edge.
Here’s a quick and clear guide to the must-know real estate terms for new investors:
1. ROI (Return on Investment)
What it means: A measure of how profitable an investment is.
Why it matters: It helps you assess if a deal is worth your time and money.
Formula:
ROI = (Net Profit / Total Investment) × 100
2. Cash Flow
What it means: The amount of money left over after all expenses are paid.
Positive cash flow = profit. Negative = loss.
Why it matters: It’s the lifeblood of buy-to-let investments. You want your rental income to exceed your expenses.
3. Off-Market Property
What it means: A property that’s for sale but isn’t publicly listed on the open market.
Why it matters: These deals often come with less competition and better pricing — which is exactly what SLG Property Deals specializes in.
4. BRRRR Strategy
What it means: Buy, Refurbish, Rent, Refinance, Repeat.
Why it matters: It’s a powerful method for growing your portfolio fast using the same capital repeatedly.
5. ARV (After Repair Value)
What it means: The estimated value of a property after it has been renovated.
Why it matters: Critical for flipping or refinancing. It tells you what your end profit could look like.
6. LTV (Loan-to-Value)
What it means: The ratio of the loan amount to the property’s value.
Example: A $75,000 loan on a $100,000 property = 75% LTV.
Why it matters: Lenders use this to assess risk. Lower LTV = better loan terms.
7. Exchange and Completion (UK-specific)
What it means:
- Exchange is when contracts are signed and the deal is legally binding.
- Completion is when ownership officially changes hands.
Why it matters: These are key milestones when buying property, and knowing the difference avoids confusion.
8. Freehold vs Leasehold
Freehold: You own the building and the land.
Leasehold: You own the property for a fixed period, but not the land.
Why it matters: Leaseholds come with additional costs (like ground rent) and may have restrictions.
9. Due Diligence
What it means: The research you do before buying a property (legal checks, title, comparables, structural issues, etc.)
Why it matters: It protects you from making costly mistakes.
10. Sourcing Fee
What it means: A fee paid to a property sourcer for finding you a deal.
Why it matters: SLG Property Deals does the heavy lifting — sourcing, vetting, and negotiating — so you can invest confidently.
Final Thoughts
Learning the language of real estate investing is your first step toward making smart, informed decisions. At SLG Property Deals, we aim to take the guesswork out of the process by providing not only high-quality investment opportunities — but also the knowledge you need to succeed.