Glossary

BitHouse Real Estate Investment Glossary

The following definitions are provided for informational purposes only and do not constitute legal, financial, or investment advice. Investors should conduct their own due diligence and consult with legal or financial professionals before making any investment decisions.

Property Valuation & Investment Structure

Appraised Value

The estimated fair market value of a property as determined by a licensed appraiser, based on an analysis of comparable sales, property condition, and prevailing market trends.

Number of Tokens

The total number of digital tokens issued to represent fractional ownership in a specific real estate asset. Each token corresponds to a proportionate share of the investment.

Token Price

The per-unit price of an individual token, representing a fractional interest in the subject property. The price may be subject to change based on market conditions and investment demand.

Offering Price

The aggregate value at which the property investment opportunity is made available to investors. This includes the total capital being raised through the issuance of tokens.

Operating Reserve

A financial allocation set aside to cover unforeseen expenses, maintenance, tenant vacancies, or other contingencies related to the management and operation of the property.

Investment Value

The total capital allocated toward the acquisition, development, or improvement of the property, inclusive of purchase price, reserves, and associated transaction costs.

Income Analysis & Revenue Streams

Monthly Rent

The gross rental income generated by the property on a monthly basis, as paid by tenants under lease agreements.

Annual Rent

The total rental income received over a 12-month period, calculated based on the property’s lease agreements.

Other Annual Income

Any additional revenue generated from the property beyond standard rent, including but not limited to parking fees, storage rentals, laundry facilities, and common area leases.

Total Annual Income

The sum of all income sources generated by the property on an annual basis, including rental payments and ancillary revenue streams.

Operating Expenses & Liabilities

Property Taxes

The annual tax liability imposed by local government authorities based on the assessed value of the property. Property tax rates and assessments may vary by jurisdiction.

Insurance

The cost of insuring the property against potential risks, including but not limited to structural damage, liability claims, and loss of rental income. Coverage terms and premiums are determined by the insurance provider.

HOA Fees

Mandatory fees payable to a Homeowners’ Association (HOA) or similar governing entity for the maintenance and management of shared community spaces, amenities, and services.

Maintenance

Routine and non-routine costs incurred to preserve the structural integrity, functionality, and aesthetic condition of the property, including repairs, replacements, and general upkeep.

Management Fees

Fees payable to a third-party property management company or service provider responsible for overseeing daily operations, tenant relations, rent collection, and maintenance coordination.

Other Costs

Any additional financial obligations associated with the ownership and operation of the property that are not categorized under specific expense headings. These may include legal fees, administrative costs, and regulatory compliance expenses.

Operating Expenses

The total cost incurred in managing and maintaining the property, inclusive of property taxes, insurance, maintenance, management fees, and other necessary expenditures.

Financial Performance & Investment Metrics

Annual Cash Flow

The net income generated by the property over a 12-month period, calculated as Total Annual Income minus Total Operating Expenses.

Monthly Cash Flow

The net income available on a monthly basis after deducting operating expenses from rental revenue.

CAP RATE (Yield)

The capitalization rate, a financial metric used to evaluate the return on investment for a real estate asset. It is calculated as: (Net Operating Income ÷ Property Value) × 100% A higher CAP rate typically indicates a higher expected return but may also reflect increased investment risk.

Estimated Return

A projected measure of potential returns on investment, calculated based on factors such as net operating income, appreciation potential, and holding period assumptions. Past performance does not guarantee future results, and estimated returns are subject to market conditions and inherent risks.

Disclaimer: The terms defined in this glossary are for informational purposes only and do not constitute financial, legal, or investment advice. BitHouse does not guarantee the accuracy, completeness, or suitability of the information provided. Investors should seek independent professional advice before making any investment decisions.