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Magic page
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Included in the offering prospectus, the magic page is a projected growth story, describing how a new REIT will accomplish its future expectations for funds from operations or funds available for distribution.
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Maintenance
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This refers to the amount of monthly charges paid by an individual co-operative owner to the co-operative as their proportionate share of the expenses of the building. Maintenance is comprised of three components: 1) The daily cost to run and operate the building; 2) The shareholders proportionate share of the building's underlying mortgage and 3) the shareholders proportionate share of the building's local real estate taxes.
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Maintenance fee
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The monthly assessment paid by homeowners' association members for the repair and maintenance of common areas.
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Maisonette
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A ground floor apartment with a separate street entrance from the rest of the building. This type of apartment will usually have a second entrance inside the building's lobby and will enjoy the same amenities of the building. Typically these apartments are located in Park Avenue or Fifth Avenue co-operative apartment buildings and provide the owners of these apartments a more private existence within a co-op and a 'townhouse' type of environment without the maintenance of an actual townhouse.
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Maker
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One who creates or executes a promissory note and promises to pay the note when it becomes due
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Managing Agent
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Most co-operative and condominium buildings will hire an independent company to manage the property. These firms are responsible for the daily maintenance of a property, the collection of rents or monthly maintenance charges, enforcing building policies, etc.
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Margin
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An amount the lender adds to an index to determine the interest rate on an adjustable rate mortgage.
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Margin
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A percentage added to the index and fixed for the life of the loan. When the initial interest rate on an adjustable-rate loan has expired, the interest rate moves toward the sum of its index plus a margin.
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Mark to market
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The process of increasing or decreasing the original investment cost or value of a property asset or portfolio to a level estimated to be the current market value
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Market capitalization
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One measure of the value of a company; it is calculated by multiplying the current share price by the current number of shares outstanding.
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Market rental rates
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The rental income that a property most likely would command in the open market, indicated by the current rents asked and paid for comparable space
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Market study
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A forecast of future demand for a certain type of real estate project that includes an estimate of the square footage that can be absorbed and the rents that can be charged
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Market value
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The highest price a property would command in a competitive and open market under all conditions requisite to a fair sale
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Market value
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The price a piece of property sells for at a particular point in time.
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Marketable title
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A title free from encumbrances that could be readily marketed to a willing purchaser
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Master lease
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A primary lease that controls subsequent leases and may cover more property than subsequent leases
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Master servicer
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An institution that acts on behalf of a trustee for the benefit of security holders in collecting funds from a borrower, advancing funds in the event of delinquencies and, in the event of default, taking a property through foreclosure
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Maturity date
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The date when the total principal balance comes due
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Mechanic's lien
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A claim created for the purpose of securing priority of payment of the price and value of work performed and materials furnished in constructing, repairing or improving a building or other structure
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Meeting space
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In hotels, space made available to the public to rent for meeting, conference or banquet uses
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Merged credit report
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A report that draws information from the three (3) main credit-reporting agencies incvluding: Equifax, Experian and Trans Union.
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Metes and bounds
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The boundary lines of land described by listing the compass directions and distances of the boundaries. Originally, metes referred to distance and bounds referred to direction.
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Mezzanine financing
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Mezzanine financing is somewhere between equity and debt. It is that piece of the capital structure that has senior debt above it and equity below it. There is both equity and debt mezzanine financing, and it can be done at the asset or company level, or it could be unrated tranches of CMBS. Returns are generally in the mid- to high-teens.
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Mid-rise
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A building with four to eight stories above ground level. In a central business district this might extend to buildings up to 25 stories.
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Mixed-use
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Space within a building or project providing for more than one use
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Modern portfolio theory (MPT)
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An approach to quantifying risk and return in a portfolio of assets. Developed in 1959 by Harry Markowitz, MPT is the foundation for present-day principles of investment diversification. It emphasizes the portfolio rather than individual assets, and how assets perform in relation to each other based on the assumption that investors can benefit from diversification when asset class returns do not move in lock step with one another.
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Modification
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A change in the terms of a loan agreement.
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Modified annual percentage rate (APR)
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The modified APR is an index of loan cost based on the standard APR and adjusted for the time the borrower expects to hold the loan.
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Monthly association dues
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A payment due monthly to a homeowners' association for maintenance and communal expenses.
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Mortgage
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In order to purchase a property, an individual often will enter into an agreement with a lending institution to provide him/her with a loan to cover a large percentage of the purchase price. A mortgage is a very common vehicle used in the purchase of a home and most Americans use this type of financing throughout their lives when they purchase property. There are several components to a mortgage, including the interest rate due on the loan (this can be either a fixed or floating rate), the term of the mortgage in number of years (usually 15 or 30) and the amount that is being financed. Using simple math, one can figure out his/her monthly payments for the term of the mortgage. If the rate is fixed, the amount for each payment period will be identical and will be comprised of two components, principle and interest.
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Mortgage
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A lien on the property that secures the promise to repay a loan.
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Mortgage
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A legal document by which real property is pledged as security for repayment of a loan until the debt is repaid in full
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Mortgage
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A sum of money borrowed to purchase a home using the property as collateral. A mortgage is the legal document that pledges the property as collateral for a loan.
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Mortgage acceleration clause
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A clause that allows a mortgage lender to demand repayment of the entire loan balance in a lump sum under certain circumstances, such as when the home is sold, title is changed, the loan is refinanced or the borrower defaults on a scheduled payment.
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Mortgage banker
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A company that originates loans and resells them to secondary mortgage lenders such as Fannie Mae or Freddie Mac.
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Mortgage banker
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A company that provides home loans using its own money. The loans are usually sold to investors such as insurance companies and Fannie Mae.
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Mortgage broker
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A firm that originates and processes loans for a number of lenders.
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Mortgage broker
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An individual that matches lenders with prospective borrowers who meet the criteria of lenders the broker is approved to deal with.
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Mortgage broker business
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A company that matches lenders with prospective borrowers who meet the criteria of lenders the broker is approved to deal with. The mortgage broker business does not keep or make the loan, but receives payment from the lender for services.
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Mortgage constant
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The ratio of an amortizing mortgage payment to the outstanding mortgage balance
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Mortgage insurance
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A policy that protects lenders against some or most of the losses that can occur when a borrower defaults on a mortgage loan; mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home's purchase price.
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Mortgage insurance
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Required by lenders on some loans to protect lenders from a possible default. Most conventional loans with down payments or home equity percentages that are less than 20 percent of the home value require private mortgage insurance (PMI).
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Mortgage insurance premium (MIP)
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A monthly payment usually part of the mortgage payment paid by a borrower for mortgage insurance.
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Mortgage Interest deduction
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The tax write-off that the Internal Revenue Service allows most owners to claim for annual interest payments made on real estate loans.
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Mortgage life insurance
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Insurance that will pay off a mortgage if the borrower dies before the debt is retired.
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Mortgage Modification
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a loss mitigation option that allows a borrower to refinance and/or extend the term of the mortgage loan and thus reduce the monthly payments.
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Mortgage Points
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Often when a consumer takes out a mortgage, the lender will tack on points to the mortgage amount is an upfront cost of doing business. In other words, if the lending institution offers a mortgage rate at 2 points, you will be paying 2% of the total mortgage upfront as an added cost of doing business.
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Mortgagee
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A bank or other financial institution that lends money to the borrower. The borrower is considered the mortgagor.
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Mortgagor
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The person who borrows money to purchase a house. The lender is called the mortgagee.
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Murphy Bed
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A bed which is built into a wall or attached to a wall and can be pulled down when needed. One can find Murphy Beds in smaller apartments. These beds can provide for great space saving and often resemble wall units so that when they are not exposed they are hardly if at all noticeable.
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