Category Archives: InvestProp Glossary

Eviction Action

InvestProp Glossary: Eviction Action (formerly “unlawful detainer”) An Eviction Action in the State of Minnesota as defined by the Courts as:  “A legal action, in which a landlord files a request to the court to determine if the tenant should be evicted or if they have a legal right to remain on the property.” …

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Broker “Fee”

InvestProp Glossary: Broker Fee (formerly “admin fee”) A fee in addition to a commission (typically %, but sometimes flat fee) paid out at closing to the Broker (not the agent) by the Buyer or Seller of Real Property pursuant to a Buyer’s Representation Agreement or Exclusive Listing Agreement (seller).   [Note:  InvestProp has NEVER …

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Cap Rate

InvestProp Glossary: Capitalization Rate (Cap rate for short) Rate of return on a real property asset with a given Net Operating Income or “NOI” and Property Value.   Cap rate = NOI/Property Value Cap rate is a financial metric used to analyse the investment return of a given real property.  This basic use of …

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Gross Rent Multiple (“GRM”)

InvestProp Glossary: Gross Rent Multiple (or GRM for short) How many times the scheduled annual rent is the purchase price (or asking price).   [sws_divider_line] Used in a sentence:   The asking price of that 4 plex is a 9.1 gross rent multiple. [sws_divider_line] Application: Gross Rent Multiple or “GRM” is the best short …

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