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General contractor
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The prime contractor who signs a contract for the construction of an entire building or project, rather than just a portion of the work. The general contractor may do all the work in-house, or hire subcontractors (more common). The general contractor is then responsible for coordination, scheduling, and payment to, all subcontractors.
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General partner
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A member of a partnership who has authority to bind the partnership, and shares in the profits and losses of the partnership.
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Gift
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Any funds that a buyer receives from a relative or other source, that do not need to be repaid. Mortgage lenders usually require a gift letter from the giver stating that the money does not have to be repaid.
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Ginnie Mae
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The common name for the Government National Mortgage Association (GNMA). The GNMA is a government-owned corporation overseen by the U.S. Department of Housing and Urban Development (HUD). The GNMA pools FHA-insured and VA-guaranteed loans to back securities for private investment. Similar to Fannie Mae and Freddie Mac, this corporation provides funding for private loans; the difference is that the GNMA deals only with FHA and VA-secured (i.e. government-backed) loans.
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Going-in capitalization rate
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The capitalization rate computed by dividing the projected first year's net operating income by the value of the property.
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Good Faith Estimate
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An estimate of all closing fees, including pre-paid and escrow items, as well as lender charges. The GFE must be given to the borrower within three days after submission of a loan application.
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Grace period
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A specified amount of time for a borrower to make a loan payment past the due date, without penalty.
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Graduated lease
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A lease in which the amount of rent varies depending upon future contingencies.
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Graduated Payment Mortgage
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A mortgage that requires a borrower to make larger monthly payments over the term of the loan. Payments are lower for the first few years but gradually rise until year three or five, when payments become fixed.
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Grant
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In real estate terms, to bestow or transfer an interest in real property by deed or other instrument. In the general sense, to give funds, property, authority, permission, or other rights and/or privileges, without demanding payment.
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Grantee
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The entity (person or organization) to which a grant is made.
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Grantor
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The entity making the grant.
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Gross building area
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The sum of areas at each floor level, including basements, mezzanines and penthouses, but without taking into account architectural setbacks and projections (decorations or structural support elements), or extensions of usable space outside the primary (structural) walls, i.e. penthouse balconies.
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Gross income
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The total household income before taxes or expenses are subtracted.
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Gross investment in real estate (historic cost)
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The total amount of equity and debt invested in real estate investments, including the gross purchase price, acquisition fees and costs, and capital improvements, minus proceeds from sales and partial sales.
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Gross lease
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A lease in which the tenant pays a flat sum for rent, out of which the landlord must pay all expenses.
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Gross leaseable area
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The portion of total floor area designed for occupancy and exclusive use by tenants, including tenants’ storage areas. This measurement excludes common areas and building-support areas (elevators, heating/cooling equipment, common storage, etc.).
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Gross returns
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Returns generated from the operation of real estate, without accounting for adviser or manager fees.
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Ground rent
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Rent paid to the owner for use of land. Generally, the arrangement takes the form of a long-term lease, with the lessor retaining title to the land.
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Growing-equity mortgage
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A fixed rate mortgage that increases payments over a specific period of time. The extra funds are applied to the principal.
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Guarantor
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The entity that makes a guaranty.
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Guaranty
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An agreement whereby the guarantor assures satisfaction of the debt of another, or performs the obligation of another, if and when the debtor fails to do so.
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