Real Estate Lingo Business Owners Need to Know

Columbus Chamber
The Columbus Chamber provides connections, resources and solutions that help small businesses and Fortune 500 enterprises grow Central Ohio's economy.

Member Insights by John Horner, Core Developments 

As a business owner, you’re aware of the hard work it takes to transform your vision into a reality. You’ve created a business plan, you’ve completed the paperwork, you’ve tested your product, and you’ve even taken care of the digital aspects. You’ve done your due diligence to get your business to where it is today; don’t stop when it comes to signing on the dotted line! Here are six real estate terms you should know:

ARV – After Repair Value

Are you anticipating renovating or doing any repairs after purchasing your real estate? The ARV is related to the value of the property once repairs and renovations are completed.

LTV – Loan to Value

Let’s talk about the big and scary M word – Money. LTV refers to how much the bank will loan you based on the value of a property.  For instance, if a bank will lend you 75% LTV on a property worth $100k, then they are agreeing to loan you $75,000. Commercial real estate lenders measure your risk as a borrower against the value of your property before they can determine any loan amounts.


The term escrow means that you’re using a third party, neither the seller nor the buyer, to hold something of value to ensure a safe and fair transaction. When purchasing real estate, escrow refers to the contract period in which the title company holds the funds until all requirements of the contract are met and the sale is finalized.

Title Insurance

During the final stages of purchasing a property, the title company charges a fee to offer insurance on the process of closing. This covers any loans or liens that are found on the property after closing.


A lien is an encumbrance against a property or the owner of that property that must be paid off at the time of closing.  This could be a mortgage on the property, personal credit card, or tax liens that were placed against the owner.

Yellow Letter

This is a real estate marketing strategy for direct mail.  Instead of sending out a standard marketing letter, these are on yellow lined paper and printed with a handwritten font.  They are meant to look handwritten and more personal.

Are you reading this and thinking, “Oh my, what did I get myself into?” Fear not. Real Estate professionals are here to answer your questions and walk you through this process. You know your business and we know ours. Let’s work together!