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Private Lender for DSCR Loans and Fix & Flip Loans

### What does CC mean in real estate?

 

Have you ever seen the term "CC" (i.e. Asking $165,000 + CC) and wondered, what does that mean? CC simply means closing costs.

 

### What are closing costs?

 

Closing costs are the fees you see on a [HUD-1](https://www.offermarket.us/real-estate-glossary/hud-1) or [ALTA](https://www.offermarket.us/real-estate-glossary) settlement sheet related to the transfer of the property from the seller to the buyer:

 

#### Government Recording and Transfer Charges

 

- Transfer tax
- Recording fees: Deed (buyer pays), Mortgage Release (seller pays)
- City/County tax/stamps: Deed
- State tax/stamps: Deed
- Recordation Tax

 

#### Title Charges

 

- Settlement or closing fee
- Owner's title insurance (may be optional depending on state)
- Lender's title insurance (if applicable)
- [CPL](https://www.offermarket.us/real-estate-glossary/cpl) (if applicable)

### Related terms:

 

- [ISAOA/ATIMA](https://www.offermarket.us/real-estate-glossary/isaoa-atima)
- [Mortgagee Clause](https://www.offermarket.us/real-estate-glossary/mortgagee-clause)
- [Contract Of Sale](https://www.offermarket.us/real-estate-glossary/contract-of-sale)
- [HUD-1](https://www.offermarket.us/real-estate-glossary/hud-1)
- [ALTA](https://www.offermarket.us/real-estate-glossary)

In real estate investing, CC means closing costs. There's more to learn at OfferMarket.

CC - Closing Costs - OfferMarket Real Estate Glossary

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CC - Closing Costs - OfferMarket Real Estate Glossary.jpg

What is CC in real estate?

[Net Operating Income](https://offermarket.us/real-estate-glossary/noi-net-operating-income) ("NOI") ÷ Current Market Value

 

Cap rates are a core quantitative metric used by real estate investors to assess the attractiveness of a rental property. It is also used by real estate sellers to set an appropriate asking price for rental investment properties. To standardize cap rate calculation for all investors, mortgage related fees including interest expenses are not included in cap rate calculation.

 

The higher the cap rate, the better. Investors often compare cap rates to the risk free rates of 30 year United States Government Treasury Bonds. Prevailing Cap Rates tend to be lower in competitive markets and for high demand and high conviction asset classes. For example, ecommerce distribution center cap rates should be expected to be lower than cap rates for retail strip mall assets because investors are concerned about the viability of strip malls and bullish on the growth prospects for logistics assets that service ecommerce.

 

### Example

 

A multi-family rental property with NOI of $100,000 and a current market value of $1,000,000 has a cap rate of 10%. NOI is all revenue including rental income, parking fees, service charges, amenities fees minus all operating expenses. Depending on lease terms and management structure, operating expenses can include property management fees, insurance, maintenance, property taxes and utilities.

Capitalization Rate ("Cap Rate") = Net Operating Income / Current Market Value. Learn how to calculate cap rates.

Cap Rate - Capitalization Rate - Real Estate Glossary - OfferMarket

What is Cap Rate in real estate?

### What is Single Room Occupancy?

Single Room Occupancy or SRO is the renting of a house room by room. This is similar to a boarding house where there are very few communal common areas. Typically a fixed price for one person per room, and a slightly higher rate for two people in one room.

 

Single Room Occupancy can be a great rental property investment strategy given the ability to maximize a dwelling's rent revenue. For example, a 2,500 SF 4 BR single family residence that rents for $2,000/month can be converted into an 8 BR SRO that generates $500 per BR or $4,000 per month in rental income. 

 

While in the example above we were able to double the monthly rental income, it's important to make sure you don't double your property management headaches. Rental property investors who are successful with SRO rentals have a disciplined system for screening tenants and often partner with Section 8, social security and veterans programs.

Single Room Occupancy or SRO is the renting of a house room by room. Learn more about single room occupancy at OfferMarket.

Single Room Occupancy ("SRO") - Real Estate Glossary - OfferMarket

What is Single Room Occupancy ("SRO") in real estate?

Wholesale properties are properties where the owner (seller) is under contract with a wholesaler (buyer) who is selling the contract to another buyer.

What are wholesale properties? Learn about wholesale real estate and how anyone buying or selling real estate can benefit from the OfferMarket wholesale real estate marketplace.