Balance refers to either the amount left over after subtracting the amount owed on a loan or the amount already paid in an account.
A balloon payment is the final payment made when the balance of the mortgage at maturity exceeds the normal payment. They are more common in commercial real estate.
Bankruptcy Remote Structure
A bankruptcy remote structure is a company within a corporate group whose bankruptcy would have as little economic impact as possible on other companies within the group. This practice protects other companies within the group from the ramifications of the entity's bankruptcy.
Basis is the amount from which gains, losses, and depreciations are calculated. Typically, this is the purchase price of an asset.
A basis point is one percent of one percent.
Example: Interest rates are 6.15% this week. Last week they were 6.55%. Rates decreased 40 basis points this week. (655 - 614 = 40).
A blind pool is an investment program involving funds invested without investors knowing which properties will be purchased.
A borrower receives funds from a lender in exchange for a promise to repay the funds. In the real estate crowdfunding industry, borrowers and developers are also known as "Sponsors."
A BPO, or broker's price opinion, is an analysis made by a broker to assist a buyer or seller in making decisions about a listing price or a suitable bid for purchase.
A bridge loan is a type of short-term loan, usually spanning a period of two weeks to three years, pending the arrangement of longer-term financing. A bridge loan is also known as a bridging loan, caveat loan, or swing loan.
A broker is someone that arranges transactions between a buyer and seller in exchange for a commission when the deal is completed.
Broker Price Opinion
A broker price opinion is an analysis made by a broker to assist a buyer or seller in making decisions about a listing price or a suitable bid for purchase.
Buy and Hold
Buy and hold is a passive investment strategy in which an investor buys stocks and holds them for a long period of time, regardless of market fluctuations.
A buy-sell clause is a legally binding agreement between co-owners dictating the circumstances if a co-owner dies or leaves the business.