People often use the terms land, real estate, and real property interchangeably, but there are some subtle distinctions.
- Land refers to the earth’s surface down to the center of the earth and upward to the airspace above, including the trees, minerals, and water.
- Real estate is the land, plus any permanent man-made additions, such as houses and other buildings.
- Real property—one of the two main classifications of property—is the interests, benefits and rights inherent in the ownership of real estate.
Broadly speaking, real estate includes the physical surface of the land, what lies above and below it, what is permanently attached to it, plus all the rights of ownership—including the right to possess, sell, lease, and enjoy the land.
Real property shouldn’t be confused with personal property, which encompasses all property that doesn’t fit the definition of real property.
Real Estate Acronyms and Abbreviations
| Abbreviation / Acronym | Meaning |
| ARV | after-repair value |
| CAP | capitalization |
| CMA | comparative market analysis |
| COCR/CCR | cash-on-cash return |
| COF | cost of funds |
| COO/C of O | certificate of occupancy |
| CRE | commercial real estate |
| DSCR/DCR/DSR | debt service coverage ratio |
| FMR | fair market rent |
| FMV | fair market value |
| FSBO | for sale by owner |
| GRM | gross rent multiplier |
| HML | hard money lender |
| HOA | homeowners association |
| HUD | Federal Department of Housing and Urban Development |
| IRR | internal rate of return |
| JV | joint venture |
| L/O | lease option |
| LLC | limited liability company |
| LLP | limited liability partnership |
| MDU | multiple-dwelling unit |
| MFH | multi family home |
| MLS | Multiple Listing Service |
| NNN | triple-net lease |
| NOI | net operating income |
| NOO | non-owner occupied |
| O/F | owner finance |
| OO | owner-occupied |
| P&S | purchase and sale |
| PCF | price-to-cash-flow ratio |
| POA | property owners association |
| REI | real estate investing |
| REIT | real estate investment trust |
| REO | real estate owned |
| ROI | return on investment |
| RTO | rent to own |
| SFH | single-family home |
| AMORT | amortization |
| APR | annual percentage rate |
| ARM | adjustable-rate mortgage |
| CCR | conditions, covenants, and restrictions |
| CFD | contract for deed |
| CLTV | combined loan-to-value ratio |
| DOS | due on sale clause |
| DOT | deed of trust |
| DTI | debt-to-income ratio |
| EMC | earnest money contract |
| FHA | Federal Housing Administration |
| GNMA | Government National Mortgage Association (Ginnie Mae) |
| LOC | line of credit |
| LOI | letter of intent |
| LTV | loan-to-value ratio |
| PITI | principal, interest, taxes, and insurance |
| PMI | private mortgage insurance |
| POF | proof of funds |
| SUB2 | subject to existing financing |
| TIL | Truth In Lending Act |
| VA | Veterans Administration |
Quick Links