Hard cost: The cost of actually constructing property improvements
Hard Money Loan: A type of asset-based loan. The borrower receives funds secured by real property. Hard money loans are typically issued by private investors or companies. Interest rates are typically higher than conventional commercial or residential property loans. May be used for a num,ber of reasons.
High-rise: In the central business district, this could mean a building higher than 25 stories above ground level, but in suburban markets, it generally refers to buildings higher than seven or eight stories.
Highest and best use: The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible and that results in the highest value
Holdbacks: A portion of a loan commitment that is not funded until an additional requirement is met, such as completion of construction
Holding period: The length of time an investor expects to own a property from purchase to sale
Hold-over tenant: A tenant retaining possession of the leased premises after the expiration of a lease
HVAC: The acronym for heating, ventilation and air conditioning
Hybrid debt: A mortgage position with equity-like participation features in both cash flow and the appreciation of the property at the time of sale or refinance