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Terminology
What is the location of the studio?
What should I wear for a Corporate Headshot?
How long will the session last?
How many pictures do you take? Do I get to see them all?
How much do Corporate Headshots cost? What is your pricing?
Do you have a makeup artist and hairstylist?
How do I find the best photographer in Bangalore for my needs?
A good starting point would be to see the portfolio and style of a photographer. Aesthetics and sensibilities widely range. Budget is also a consideration. Thirdly, the comfort level that you have with a photographer will determine the end result too.
LETTER OF INTENT (LOI)
A non-binding agreement written by a buyer disclosing his/her interest to purchase a property for a specified price, and under specified terms.
LIMITED PARTNER (LP)
A partner whose liability is limited to their share of ownership. The LP is often referred to as a passive investor.
LOAN-TO-COST RATIO (LTC)
Used by the lender to assess maximum debt coverage, it is the ratio of the value of the total project costs (loan amount + capital expenditure costs) divided by the apartment's appraised value.
LOAN-TO-VALUE RATION (LTV)
The ratio of the loan divided by the apartment's appraised value.
LONDON INTERBANK OFFERED RATE (LIBOR)
The rate that the world's top banks charge for short-term loans. The rate is used to calculate interest rates on various types of loans.
LOSS-TO-LEASE (LTL)
The revenue lost when calculating the difference between market rent and actual rent.
MARKET RENT
The standard reasonable rent within a given area.
METROPOLITAN STATISICAL AREA (MSA)
A geographical region containing the core and adjacent communities that have an integrated economic and social dependance. MSAs are defined by the United States Office of Management and Budget (OMB).
MODEL UNIT
An apartment unit used as a showroom to present to prospective tenants.
MORTGAGE
A legal contract by which an asset is pledged as a security for repayment of a loan until the debt is repaid in full.
NET OPERATING INCOME
A calculation that takes all of the revenue of a property minus the operating expenses. Note, CapEx is not included in determining the NOI.
OPERATING ACCOUNT FUNDING
Extra funding that is raised to account for unexpected expenses, and dips in occupancy. This is best raised prior to purchasing a property.
OPERATING AGREEMENT
A document that outlines the responsibilities and ownership percentages for all invested and/or managing parties.
OPERATING EXPENSES
All costs associated for running and maintaining a property, exclusive of Capital Expenditures.
PASSIVE INVESTING
When an investor invests capital into an apartment syndication which is entirely managed by a general partner.
PERMANENT AGENCY LOAN
A long-term mortgage from Fannie Mae, or Freddie Mac.
PHYSICAL OCCUPANCY RATE
The proportion of tenanted units divided by the total number of units.
PREFERRED RETURN
The rate of return that the limited partners are offered in advance to the general partners' returns.
PREPAYMENT PENALTY
A penalty clause in the contract for advance payments on the loan.
PRICE PER UNIT
The price per unit if you were to take the purchase price divided by the total number of units.
PRIVATE PLACEMENT MEMORANDUM (PPM)
A document which outlines all of the terms of the investment, including the risks associated with investing. PPMs typically include the introduction, basic disclosures, the legal agreement and the subscription agreement.
PRO FORMA
The projected budget for the next 12 months and for "X" amount of years, with "X" being the number of years the property is underwritten to be held.
PROFIT AND LOSS STATEMENT (T-12)
A document which contains detailed information regarding the revenue and expenses for a particular property over the last 12 months. This document assists with the Sponsorship's Team underwriting of the property.
PROPERTY MANAGEMENT FEE
A monthly fee paid to the property management company for managing the day-to-day operations of a property.
RATIO UTILITY BILLING SYSTEM (RUBS)
A billing calculation to charge back tenants for their use of utilities.
RECOURSE
The right of a lender to go after personal assets above and beyond the collateral should the borrower default on the loan.
REFINANCE
When one replaces one debt with a new debt.
REFINANCING FEE
A fee paid to the General Partnership for all work required to secure the refinancing.
RENT COMPARABLE ANALYSIS (RENT COMPS)
The process of analyzing rents of similar properties in the area to determine market rents.
RENT PREMIUM
The new rental rate after interior and/or exterior improvements are completed.
RENT ROLL
A document tracking the unit number, unit type, square footage, tenant name, market rent, actual rent, deposit amount, move-in date, lease-start and lease-end dates, and tenant balance.
SALES COMPARISON APPROACH
A method to calculate an apartment's value by using similar sold apartments.
SALES PROCEEDS
The profits collected upon sale of the apartment.
SOPHISTICATED INVESTOR
A person deemed to have sufficient investing experience and/or knowledge to assess risks and merits of investment opportunities.
SUBJECT PROPERTY
The apartment intended for purchase by the General Partnership.
SUBMARKET
A geographic subdivision of a given market.
SUBSCRIPTION AGREEMENT
A document which promises that the LLC (which owns the property) to sell a specific number of shares to a limited partner at a specified price, and a commitment by the limited partner to pay that price.
UNDERWRITING
The process of financially evaluating the property to determine the offer price, and the projected returns.
VACANCY LOSS
The loss of revenue due to unoccupied units.
VACANCY RATE
The rate of unoccupied units divided by the total number of units.
VALUE-ADD PROPERTY
A stabilized apartment community, with an occupancy of over 85% and an opportunity to add value by improvements to the property, or improving the management in order to increase the income and decrease expenses.
YIELD MAINTENANCE
A penalty paid by a borrower when the principal is paid off in advance.