Learn / Glossary
Short, plain-English definitions for the terms used across CoHold and these guides. The same definitions appear inline wherever a term is used in an article.
An increase in a property's value over time. It is not guaranteed — values can also fall.
The profit made when a property (or an investor's interest in it) is sold for more than it cost to acquire.
The actual cash income an investor receives in a year, as a percentage of the amount they invested — can differ from net yield once platform fees are applied.
A payment made to investors, usually representing their share of net rental income or sale proceeds.
The legal, financial and physical checks carried out on a property — title, compliance, condition — before it is offered to investors.
An arrangement where investor funds are held by a neutral third party until agreed conditions — like reaching a funding target — are met.
The point at which an investor realises value from their investment — for example through a property sale or an available transfer mechanism. Timing is not guaranteed.
Owning a share of a property, alongside other investors, instead of buying the whole property yourself.
Annual rent divided by property value, before any expenses are deducted.
Internal Rate of Return — a single annualised percentage that summarises an investment's total return, including both income and any change in value, over the time money was invested.
A legal agreement setting out the terms on which a tenant occupies and pays rent for a property.
How quickly and easily an investment can be converted to cash. Real estate is generally less liquid than cash, stocks or listed funds.
Limited Liability Partnership — a partnership structure sometimes used, instead of an SPV, to hold a specific property on investors' behalf.
Annual rent minus property-level expenses (maintenance, tax, insurance, management), divided by property value.
The share of a property that is currently leased to a paying tenant, the opposite of vacancy.
An investor's share of a property's ownership vehicle, generally calculated as their contribution divided by the total raised for that property.
The day-to-day running of a property — finding tenants, collecting rent, arranging repairs — usually handled by a professional manager.
The portion of collected rent, after property and management expenses, paid out to investors in proportion to their ownership.
Annual rental income expressed as a percentage of the property's value — a way to compare income across properties of different sizes.
Special Purpose Vehicle — a company set up to hold one specific property (or a small group of them) and nothing else.
The person or business occupying a property under a lease and paying rent for it.
A period when a property has no paying tenant, so it earns no rental income.
An independent estimate of a property's fair market value, usually carried out by a qualified valuer.
