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. Each term links to a short page with the full definition, the course that teaches it, and related terms from the same chapter.
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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