REIPRIME Logo
Intermediate1.5 hours16 terms

Evergreen Contract Key Terms for Investors

This curated collection highlights key terms that might be helpful when exploring evergreen contracts in real estate investment. It serves as a quick reference for commonly referenced concepts, supporting your learning journey without providing exhaustive coverage.

Term Collection

1

Capitalization Rate

The Capitalization Rate (Cap Rate) is a real estate valuation metric used to estimate the potential rate of return on an investment property, calculated by dividing its Net Operating Income (NOI) by its current market value.

Intermediate14-15 min
2

Wealth Management

Wealth management is a comprehensive financial service that combines financial planning, investment portfolio management, and other aggregated financial services to manage the wealth of high-net-worth individuals and families.

Intermediate8 min
3

Tenant Retention

Tenant retention refers to the strategies and efforts property owners and managers use to encourage existing tenants to renew their leases, minimizing vacancies and turnover costs.

Intermediate10-11 min
4

Real Estate Investment Strategy

A real estate investment strategy is a structured plan outlining an investor's approach to acquiring, managing, and disposing of properties to achieve specific financial objectives, considering risk tolerance and market conditions.

Intermediate11-12 min
5

Lease Agreement

A legally binding contract between a landlord and a tenant that outlines the terms and conditions of renting a property, including rent, duration, and responsibilities.

Beginner18-20 min
6

Contract Termination

Contract termination is the legal process by which parties to a real estate purchase agreement or other contract formally end their obligations before the agreement's full completion, typically due to unmet conditions, breaches, or mutual consent, leading to specific legal and financial consequences.

Intermediate5 min
7

Contract Law

Contract law in real estate governs legally binding agreements between parties involved in property transactions, ensuring enforceability and defining rights and obligations.

Intermediate8-9 min
8

Automatic Renewal

Automatic renewal refers to a contractual provision where an agreement, such as a lease or service contract, continues for a specified period unless one party provides timely notice of termination.

Intermediate2 min
9

Net Operating Income

Net Operating Income (NOI) is a key real estate metric representing a property's annual income after deducting all operating expenses, but before accounting for debt service, income taxes, and capital expenditures.

Intermediate11-12 min
10

Evergreen Clause

An evergreen clause is a provision in a contract that automatically renews the agreement at the end of its term for a specified period, unless one party provides timely notice of termination.

Intermediate5-6 min
11

Notice Period

A notice period in real estate is the legally mandated or contractually agreed-upon timeframe one party must give to another before taking a specific action, such as terminating a lease or increasing rent.

Intermediate2-3 min
12

Cash Flow

Cash flow in real estate investing represents the net income generated by a property after all operating expenses and debt service payments have been made. Positive cash flow indicates profitability, while negative cash flow suggests a loss.

Intermediate2-3 min
13

Real Estate Law

Real Estate Law is the body of legal principles governing the ownership, use, and transfer of land and attached structures, crucial for investors to navigate property rights, transactions, zoning, and landlord-tenant relations.

Intermediate11-12 min
14

Property Management Agreement

A Property Management Agreement is a legally binding contract between a property owner and a property manager, detailing the scope of services, responsibilities, fee structures, and terms for managing a real estate asset.

Intermediate5 min
15

Lease Term

The lease term is the specific duration or length of time, defined in a lease agreement, for which a tenant agrees to rent a property from a landlord.

Beginner14-15 min
16

Risk Management

Risk management in real estate is the systematic process of identifying, assessing, and controlling potential threats to an investor's capital and returns, ensuring long-term asset protection and profitability.

Intermediate12-13 min

Common Questions