| Accredited Investor | a person or party that meets the following terms: To qualify as an accredited investor, an investor must either be: A) a financial institution; B) an affiliate of the issuer; or C) an individual with a net worth of at least $1 million or an annual income of at least $200,000, and the investment must not account for more than 20% of the investor's worth.
An accredited investor often pursues angel investment opportunities and is also considered a regulation D type investor by the Securities and Exchange Commission.
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| Acquisition Financing | Acquisition financing or loans may result from creating loan to value financing based on the acquired property, against cash-flow current and future, or some other determination based on the synergy of such an acquisition. |
| Adjustable Rate Mortgage | A mortgage where the interest rate adjusts periodically up or down through a set index; may also be referred to as a floating rate mortgage. |
| Adjusted Gross Income | Gross income of a property if fully rented, less an allowance for estimated vacancies. |
| Adjustment Interval | The period of time between changes in the interest rate for an adjustable-rate mortgage (ARM). Typical adjustment intervals are one year, three years, and five years. |
| Amortization | The payment of a debt in installments over an agreed-upon period, during which principal and interest are paid off. |
| Angel Investor | An angel investor is an individual or party who invests directly into private, start-up companies or new ventures. |
| Annual Percentage Rate (APR) | This rate takes into account all the costs, interest charges, arrangement fees etc. Theoretically, the annual percentage rate allows you to compare mortgages on a like for like basis. However, you need to be careful as different lenders calculate it in different ways.
The Annual Percentage Rate is the compounded rate used to give a standard comparison of the amount of interest you are likely to pay on loans or outstanding credit card balances. 2. A statutory method of calculating the Annual Percentage Rate of charge to repay the total charge for credit over the period of the loan. 3. Allows customers to compare like with like when comparing costs between different lenders. |
| Apartment Conversion | When a rental apartment building is converted to individually owned units (condos). |
| Apartment Rehabilitation | The extensive remodeling or renovating of an apartment building. |
