Reference
Finance and AI Definitions
This index collects all 1090 defined terms from the three free Devon Coombs Academy courses: Real Estate Finance, Entrepreneurial Finance, and Applied AI for Finance and Accounting. The vocabulary is organized into 37 topic guides, one per course chapter, so every term sits next to the related terms it is normally used with.
Related references: free finance calculators, concept comparison guides, and the full resource directory.
Real Estate Finance term guides
Property, Markets & Income
Week 1 · 158 terms
Contracts & Leases
Week 2 · 103 terms
Funding Sources
Week 3 · 113 terms
Cash Flow Modeling
Week 4 · 48 terms
Pricing & Risk
Week 5 · 45 terms
Triangulation & Taxes
Week 6 · 47 terms
Advanced Risk/Reward
Week 7 · 59 terms
GP/LP Waterfalls
Week 8 · 34 terms
Portfolio & Risk
Week 9 · 19 terms
Clear Recommendations
Week 10 · 35 terms
Four-Quadrant Model
Optional Module · 6 terms
Entrepreneurial Finance term guides
The Founder Archetype Matrix
Week 1 · 36 terms
Venture Economics Framework
Week 2 · 42 terms
Financial Statement Analysis
Week 3 · 39 terms
Financial Forecasting
Week 4 · 30 terms
Valuation Methods
Week 5 · 44 terms
Cap Tables & Dilution
Week 6 · 31 terms
VC Fund Economics
Week 7 · 37 terms
Capital Structure
Week 8 · 28 terms
Pitch Deck Mastery
Week 9 · 7 terms
Exits & the Capital Landscape
Week 10 · 21 terms
Negotiation (Optional)
Appendix · 4 terms
Governance (Optional)
Appendix · 7 terms
Applied AI for Finance and Accounting term guides
Finance AI Foundation
Module 0 · 18 terms
Financial Statement Prep
Module 1 · 13 terms
Close & Reporting
Module 2 · 6 terms
Variance & Driver Trees
Module 3 · 7 terms
Research & Benchmarking
Module 4 · 5 terms
Working Capital & Cash
Module 5 · 6 terms
Cost & Spend Analytics
Module 6 · 5 terms
Anomaly Detection
Module 7 · 6 terms
Technical Memos
Module 8 · 5 terms
Contract Review
Module 9 · 5 terms
Valuation & Scenarios
Module 10 · 6 terms
Financial Due Diligence
Appendix · 5 terms
Procurement & Sourcing
Appendix · 5 terms
FP&A Operating Model
Appendix · 5 terms
Every term, A to Z
#
A
- AAI
- absolute net lease
- absorption
- Acceleration
- Accelerator
- accredited investor
- Accrual accounting
- accrued depreciation
- Acquihire
- acquisition & development loan
- acquisition fee
- active income
- adaptive reuse
- Add-back
- Addressable spend
- adjustable-rate mortgage
- adjusted basis
- Adjusted EBITDA
- Adjusted Funds From Operations
- Adjusted net asset method
- Adjusted Present Value (APV)
- adjustment interval
- Adoption Friction
- Adversarial check
- Adverse selection
- AFFO
- Affordable loss
- after-tax cash flow
- After-tax cost of debt
- Agency costs
- agency MBS
- Agent (ASC 606)
- agentic AI
- Agentic tool
- All Appropriate Inquiries
- Alternative hypothesis
- American waterfall
- American waterfall
- amortization
- amount realized
- AMT
- anchor tenant
- anchoring
- Anchoring
- ancillary revenue
- Annual Contract Value (ACV)
- annual percentage rate
- annuity
- Anti-dilution
- AP aging
- appraisal
- appraisal smoothing
- appreciation
- APR
- AR aging
- arithmetic mean return
- ARM
- ARPU
- ARR / MRR
- as-is NOI
- ASC 820
- ASC 840
- ASC 842
- asking rent
- Aspiring Founder
- assessed value
- asset management fee
- asset market
- Asset substitution
- asset-management fee
- assignment
- Assumptions ledger
- Assumptions ledger
- Assumptions section
- ATCF
- attornment
- Audit trail
- Authorized shares
- availability bias
- average daily rate
B
- B-piece
- bad boy carve-outs
- bad debt
- bad-boy carve-outs
- balloon payment
- band of investment
- Bankrolled Builder
- bargain purchase option
- base case
- base year
- BATNA
- Beachhead Strategy
- Bear / Base / Bull
- Best value
- beta
- Beta
- Big Five (OCEAN)
- Billings
- binding constraint
- blind pool
- blind-pool risk
- Blue Ocean Strategy
- Board observer
- Bookings
- Bootstrap Expert
- Bootstrapping
- Bottom-up vs top-down
- BOV
- breakpoint
- bridge loan
- Bridge note
- Broad-based weighted average
- broker opinion of value
- budget
- build-to-suit
- build-up approach
- built-up method
- bullet loan
- bundle of rights
- Burn Multiple
- Burn Rate
- business risk
- business-background memorandum
C
- C corporation
- CAC Payback Period
- CAGR
- CAM
- cap rate
- Cap table
- cap-rate expansion
- capex
- capital allocation
- capital call
- Capital call
- capital commitment
- capital expenditures
- capital market
- capital stack
- Capital stack
- Capital structure
- capitalization rate
- Capitalized
- CAPM
- CAPM
- Capped participating preferred
- Career Changer
- carried interest
- Carried interest (carry)
- Cash collections
- Cash Conversion Cycle (startup)
- Cash Flow After Debt Service
- Cash Flow Before Debt Service
- Cash flow model
- cash flow to equity
- Cash-basis accounting
- cash-flow coverage ratio
- cash-on-cash
- cash-on-cash return
- cash-out refinance
- casualty
- catch-up
- Category management
- Causation
- CERCLA
- certificate of occupancy
- chart of accounts
- Churn
- CIM
- Circularity problem
- civil engineer
- Class A
- Class B
- Class C
- Clause extraction
- clawback
- Clawback
- Clean vs. dirty terms
- Cliff
- Close-ready
- closed-end fund
- CMBS
- co-investment
- co-tenancy
- Cohort Analysis
- cold storage
- collection loss
- commercial mortgage-backed securities
- commercial real estate
- commingled fund
- Committed capital
- common area maintenance
- common equity
- Common stock
- Comparability caveat
- comparable sales
- compensatory damages
- Competition-Based Pricing
- completion guarantee
- completion guaranty
- compound annual growth rate
- Compound Annual Growth Rate (CAGR)
- concentration risk
- concessions
- condemnation
- conduit CMBS
- conduit lender
- Confidence rating
- confirmation bias
- conforming loan
- consideration
- Constrained
- construction & development loan
- construction draw
- construction loan
- construction manager
- construction-management fee
- Consumer Price Index
- contingency
- continuous operations
- Contribution Margin (CM1)
- Contribution Margin (CM2)
- Control premium
- controllable expenses
- controller
- Conversion discount
- Conversion point
- Convertible note
- Convertible preferred
- Conviction investing
- core-plus
- corporate real estate
- correlation
- cost approach
- Cost approach
- Cost of capital
- Cost of debt
- Cost of equity
- cost recovery period
- cost segregation
- Cost-Plus Pricing
- counteroffer
- covariance
- Covenant
- CPI adjustment
- CRE
- credit loss
- Crossing the Chasm
- Customer Acquisition Cost (CAC)
- Customer deposits
- Customer Lifetime Value (LTV)
D
- data dump
- Data room
- DCF
- DCF models
- DCR
- dealer property
- debt fund
- debt service
- Debt Service Coverage Ratio
- Debt Yield
- Debt-like item
- decision ask
- Decision-quality layer
- deed
- deed of trust
- deep research
- Default Alive / Default Dead
- default risk
- defeasance
- deferral benefits
- deferred developer fee
- deferred maintenance
- deferred revenue
- Deferred revenue
- denominator effect
- depreciable basis
- depreciation
- depreciation recapture
- design-build
- Deterministic split
- Deterministic work
- development spread
- Dilution
- DiPasquale-Wheaton model
- direct capitalization
- Direct listing
- discount rate
- discounted cash flow
- Discounted cash flow (DCF)
- Discounted cash flow (DCF)
- disposition
- Disposition
- disposition fee
- distribution waterfall
- Distribution waterfall
- diversification
- dividend yield
- Domain experience
- double net lease
- Double-trigger acceleration
- Down round
- DPI
- Draft-critique-revise
- Drag-along rights
- Driver tree
- driver-based forecasting
- Driver-based forecasting
- Driver-based planning
- dry powder
- Dry powder
- DSCR
- due diligence
- Duplicate payment
- Duty to common
E
- E-Myth gap
- Early exercise
- earnest money
- Earnout
- easement
- EBC
- economic base diversification
- economic occupancy
- effective borrowing cost
- Effective Gross Income
- Effective Gross Revenue
- effective net rent
- Effective Net Revenue
- effective rent
- Effectuation
- EGI
- EGR
- eminent domain
- encumbrance
- ENR
- Enterprise value
- Enterprise value
- entitlement
- Entrepreneurial seizure
- environmental risk
- equitable title
- equity dividend rate
- equity multiple
- equity REIT
- Equity risk premium (ERP)
- Equity value
- escheat
- escrow
- Escrow / holdback
- estoppel certificate
- European waterfall
- European waterfall
- EV / EBITDA
- EV / Revenue
- Evidence Ladder
- Exception-based testing
- exclusivity clause
- Executive session
- exit cap rate
- Exit multiple method
- expected NPV
- expected value
- expense inflation
- expense reimbursement
- expense stop
- Expert
- extend and pretend
- external obsolescence
- Extract-verify-cite
F
- face rent
- Fact versus inference
- False positive
- Falsifiable
- falsifiable thesis
- Fama-French three-factor model
- Fannie Mae
- fast-track construction
- Fatal Pinch
- favorable leverage
- FCFE
- FCFE
- FCFF
- FCFF
- feasibility analysis
- federal funds rate
- fee simple
- FFO
- FHA loan
- fiduciary duty
- Fiduciary duty
- final adjusted sale price
- finance lease
- Financial capital
- Financial distress costs
- Financial leverage
- financial risk
- Financing need
- financing structure
- first-priority lien
- fixture
- flex space
- floor loan
- Flux commentary
- Folder as context
- Football field chart
- forecast
- Forecast
- foreclosure
- Founder identity
- Founder-market fit
- four quadrants
- four-quadrant model
- Freddie Mac
- Free cash flow
- Free cash flow discipline
- Free Cash Flow to Equity
- Free Cash Flow to the Firm
- free rent
- Full ratchet
- full-service lease
- fully amortized loan
- Fully diluted shares
- fully indexed rate
- Fully loaded cost
- functional obsolescence
- Fund (limited partnership)
- Fund of funds
- Funds From Operations
- furniture, fixtures, and equipment
- future value
G
- general contractor
- general partner
- General partner (GP)
- general partnership
- general vacancy
- geographic information systems
- geometric mean return
- geotechnical engineer
- Ginnie Mae
- GIS
- go-dark
- Goal orientation
- going-in cap rate
- going-in yield
- Gordon Growth approximation
- Gordon Growth Model
- Gordon Growth Model
- government-sponsored enterprise
- GP
- GP catch-up
- GP catch-up
- GP commit
- GPR
- GRM
- grocery-anchored center
- Gross Bookings / GMV
- Gross burn
- gross lease
- Gross margin
- Gross Potential Rent
- gross rent multiplier
- Gross Retention
- Gross Revenue
- gross sales
- Gross Scheduled Income
- Gross vs. net revenue
- gross-up
- gross-ups
- ground lease
- Growth orientation
H
- Hallucination
- hard costs
- Harvest period
- HBU
- heterogeneous
- heuristic
- hidden value
- highest and best use
- historic rehabilitation credit
- Historic Tax Credit
- hold period
- hold-versus-sell analysis
- holdbacks
- holding period return
- Horizontal analysis
- hotel franchise
- hotel management agreement
- HPR
- HTC
- Human review checklist
- human-in-the-loop
- Hungry Expert
- hurdle rate
- Hybrid instrument
I
- IC memorandum
- illiquidity premium
- ILPA
- implied cap rate
- income approach
- Income approach
- income-producing real estate
- Indemnification
- indemnity
- Independent director
- Independent Professional
- indicated value
- inflation risk
- Information asymmetry
- Information rights
- injunctive relief
- Insolvency (creditor standing)
- installment sale
- intercreditor agreement
- interest rate risk
- interest reserve
- Interest tax shield
- interest-only loan
- interest-rate cap
- interest-rate risk
- Internal rate of return (IRR)
- Inventory turns
- investable universe
- Investment period
- investment property
- investment thesis
- investment value
- investment-grade tenant
- investor returns
- IRR
- ISO
- Issue spotting
- Issue, not conclusion
- Issued and outstanding shares
- Issues memo
J
K
L
- land acquisition loan
- land development loan
- land planner
- landscape architect
- lease rollover
- lease-versus-own analysis
- leased fee
- leasehold
- leasing commissions
- legal title
- legislative risk
- lender's yield
- letter of credit
- Letter of intent (LOI)
- leverage
- Leveraged buyout
- levered cash flow
- levered IRR
- Levered value
- license
- lien
- lifestyle center
- Lifestyle orientation
- LIHTC
- like-kind exchange
- limited partner
- Limited partner (LP)
- limited partnership
- Linear vs compound growth
- liquidated damages
- Liquidation preference
- Liquidation preference overhang
- Liquidation stack
- Liquidation value
- Liquidation waterfall
- liquidity
- Liquidity (match rate)
- Liquidity lever
- liquidity risk
- LLC
- load factor
- loan assumption
- loan syndication
- loan-to-cost
- Loan-to-Value
- lockout
- lockout period
- Lockup
- Logo churn
- Logo retention
- loss asymmetry
- loss aversion
- loss to lease
- Low-Income Housing Tax Credit
- LP
- LTC
- LTV
- LTV:CAC Ratio
M
- Magic Number
- Management company
- management fee
- Management fee
- management risk
- MAP framework
- MARCS framework
- mark-to-market
- Market approach
- market conditions adjustment
- market extraction
- market rents
- market risk
- market risk premium
- market segmentation
- market value
- market-defining story
- marketable title
- master servicer
- Materiality threshold
- maturity wall
- memorandum of lease
- metes and bounds
- mezzanine debt
- mezzanine financing
- mezzanine loan
- Milestone-based ask
- millage rate
- mini-perm
- mini-perm loan
- Minimum cash
- Minimum cash balance
- Minimum context principle
- Minimum Viable Product (MVP)
- miniperm financing
- MIRR
- Mix effect
- MM Proposition I
- MM Proposition II
- Model tier
- modified gross lease
- modified internal rate of return
- Modified IRR (MIRR)
- MOIC
- Monte Carlo simulation
- monthly close
- monthly draw method
- Moonshot Dreamer
- mortgage
- mortgage constant
- mortgage REIT
- mortgage-backed securities
- mREIT
- Multi-model orchestration
- multifamily
- Multiple-IRR problem
- mutual assent
N
- napkin test
- Nareit
- NAV
- NCREIF
- NCREIF NPI
- NCREIF Property Index
- Net Asset Value
- Net burn
- Net debt
- net effective rent
- net interest margin
- net lease
- net operating income
- Net operating loss (NOL)
- net present value
- Net Rental Revenue
- Net Revenue Retention (NRR)
- net sale proceeds
- Net working capital
- Net working capital peg
- Network Effects
- newspaper test
- Next Twelve Months (NTM)
- NFI-ODCE
- NNN
- NOI
- Non-deterministic work
- non-disturbance
- non-recourse
- non-recourse loan
- non-recoverable
- Nonparticipating preferred
- nonrecourse loan
- NOPAT
- normalization
- North-star metric
- note rate
- Novice
- NPI
- NPV
- NSO
O
- OER
- open-end fund
- operating agreement
- operating cash flow
- operating expense ratio
- operating expenses
- Operating income
- operating lease
- Operating Leverage
- Operating model
- opportunistic
- opportunity cost
- Opportunity sizing
- opportunity zone
- option
- Option pool
- original cost basis
- origination fee
- other income
- Over-time recognition
- overconfidence
P
- P/E ratio
- Paid-in capital
- parol evidence rule
- partially amortized loan
- Participating preferred
- Participating vs. non-participating
- party to be charged
- pass-through
- pass-through taxation
- Passion Project
- passive activity loss rules
- passive income
- Pay-to-play
- payback period
- Pecking order theory
- Peer analysis
- Peer set
- PEG ratio
- pension fund
- percentage rent
- Performance obligation
- Performance persistence
- permanent financing
- permanent loan
- permanent variance
- Permanent variance
- Perpetuity growth rate (g)
- Personal guarantee
- personal property
- personal residence
- Phase I
- Phase I Environmental Site Assessment
- Phase I ESA
- Phase II
- Phase II ESA
- physical deterioration
- Pipeline conversion
- police power
- Porter's Five Forces
- portfolio income
- Portfolio Professional
- portfolio return
- positive leverage
- possession
- Post-money option pool
- Post-money SAFE
- Post-money valuation
- Potential Gross Income
- power center
- Power law
- PPM
- Pre-money option pool
- Pre-money valuation
- Precedent transactions
- pref
- preferred equity
- Preferred equity
- preferred return
- Preferred return (hurdle)
- prepayment penalty
- prepayment protection
- prepayment risk
- present value
- Price Metric
- price per square foot
- price per unit
- Price variance
- Primed Disruptor
- Primed Founder
- Principal (ASC 606)
- private credit
- Private Placement Memorandum
- pro forma
- pro forma NOI
- Pro-rata rights
- probability-weighted return
- Probability-weighted valuation
- Problem-Solution Fit
- Product-Market Fit
- promote
- Prompt injection
- property management
- property taxes
- proportionate share
- PropTech
- proration
- Protective provisions
- proxy
- psychographics
- punitive damages
- Purchasing portfolio matrix
- Pyramid Principle
Q
R
- R&D intensity
- RAG matrix
- RCA
- Read-alone test
- real property
- REC
- Recapitalization
- recapture
- Recognized Environmental Condition
- Recognized revenue
- reconciliation
- reconciliation
- recording
- recourse
- recoverable expenses
- Red lines
- red team
- Red-lines check
- redemption queue
- redevelopment
- reference-class forecasting
- refinance
- refinancing fee
- refinancing risk
- Regulation Crowdfunding (Reg CF)
- Regulation D
- reinvestment assumption
- reinvestment risk
- REIT
- rent commencement
- rent control
- rent escalation
- rent risk
- rent roll
- rentable square feet
- replacement cost
- replacement reserves
- representativeness
- reproduction cost
- repurchase agreement
- Required opportunities
- required return
- rescission
- Reserves
- residual land value
- residual value
- Resource matrix
- RESPA
- restrictive covenant
- retainage
- Retention ratio
- return of capital
- Revenue churn
- Revenue Model
- revenue per available room
- Revenue-based financing
- reversion
- Rich vs. King
- right of first offer
- right of first refusal
- Right of first refusal (ROFR)
- Right to payment
- right-of-use asset
- risk
- Risk perception
- risk premium
- Risk tolerance
- risk-free rate
- Risk-free rate
- risk/mitigant pairing
- rolling forecast
- Rolling forecast
- ROU asset
- Round-dollar entry
- RSU
- RUBS
- Rule 506(b)
- Rule 506(c)
- Rule of 40
- Run-rate revenue
- Runway
- RVPI
S
- SAFE
- sale-leaseback
- sales comparison approach
- Sales cycle
- Sales team headcount model
- same-store NOI growth
- SASB CMBS
- SBA 504
- SBIR
- Scenario
- scenario analysis
- Scenario analysis
- SCR structure
- second mortgage
- Secondary market
- secondary mortgage market
- Section 1031
- Section 1061
- Section 1231
- Section 1231 property
- Section 199A
- Section 223(f)
- Section 382
- securitization
- security deposit
- seller financing
- senior debt
- sensitivity analysis
- Sensitivity analysis
- Sensitivity analysis
- sensitivity table
- servicing fee
- Share price
- Sharpe ratio
- Should-cost model
- Side Hustler
- Signaling
- single net lease
- single-purpose entity
- Single-trigger acceleration
- Size premium
- Skill
- SNDA
- Social capital
- SOFR
- soft costs
- soft debt
- soils engineer
- sole proprietorship
- SPAC
- space market
- special servicer
- special-purpose buildings
- special-purpose entity
- specific performance
- speculative construction
- Spend cube
- sponsor
- Spray and pray
- spread investing
- SPV
- stabilization period
- stabilized NOI
- Stage-adjusted discount rate
- standard deviation
- standby commitment
- Static budget
- Statute of Frauds
- step-down prepayment penalty
- stock adjustment
- structural engineer
- Structural hole
- Structured hypothesis
- subcontractor
- sublease
- submarket
- subordination
- subordination agreement
- subscription agreement
- sunk cost fallacy
- supply overshoot
- supporting schedule
- suspended losses
- Syndicate
- syndication
- System 1 and System 2
- systematic risk
- systemic risk
T
- T-12
- Tail spend
- Tail spend
- Take Rate
- take-out commitment
- TAM / SAM / SOM
- Target return
- tax credit
- tax shelter
- tax-exempt bonds
- teaser rate
- tenant credit risk
- tenant improvement
- tenant improvement allowance
- Tender offer
- Term sheet
- terminal cap rate
- terminal sale
- terminal value
- Terminal value
- Terminal value
- Three-anchor journey
- TI allowance
- tie-out
- Tie-out
- Time to productivity (ramp)
- timing variance
- Timing variance
- title
- title insurance
- Traction
- trade fixtures
- trade or business property
- Tradeoff theory
- Trading comparables
- trailing twelve months
- Trailing Twelve Months (TTM)
- tranche
- trial balance
- Trial balance
- triangulation
- Triangulation
- triple-net lease
- Trough week
- Truth in Lending Act
- TVPI
U
- UCC filing
- Uniform Commercial Code
- Unit economics
- Unit Economics
- unit turn costs
- unlevered cash flow
- unlevered discount rate
- unlevered IRR
- unlevered return
- Unlevered value
- unlevered yield
- unrecaptured Section 1250 gain
- unsystematic risk
- up-front financing costs
- usable square feet
- USDA loan
- user/space market
- USPAP
- Utilization rate