Commercial Lending Glossary
A glossary of definitions for common terms used in commercial real estate hard money lending & CRE investing.
An amount of money borrowed and owed. Can apply to both individuals and companies, debt allows one to make a purchase they would otherwise be unable to. Generally, the borrower and lender enter some sort of agreement for the borrower to repay at some point.
The process of combining multiple unsecured debts into one bill. Debt consolidation can be applied to a range of bills, including credit cards, medical bills, payday loans, and helps to eliminate the potential risk of incorrect, late, or missed payments.
The loss or use of an asset's value over time. This loss can be due to routine wear and tear on a piece of equipment or other tangible asset, or due to market fluctuation on a piece of property. Can be contrasted with appreciation.