Real Estate Investment Trust [REIT]
A real estate mutual fund, established by income tax laws to avoid the corporate income tax. It sells shares of ownership and must invest in real estate or mortgages. It must meet certain other requirements, including minimum number of shareholders, widely dispersed ownership, and certain asset and income tests.

Real Estate Market
The potential buyers and sellers of real property at the current time. It includes markets for various property types, such as office market, housing market, land market and condominium market.

Recourse
The ability of a lender to recover money from a borrower in default, in addition to the property pledged as collateral.

Rehabilitation Tax Credit
The Tax Reform Act of 1986 provides a 20% tax credit for rehabilitating certified historic structures, and a 10% credit for other buildings that were placed in service after 1936.

Replacement Reserve
Various account(s) maintained (typically by the Lender) to provide funds for anticipated expenditures required to maintain a building. A reserve account usually is required by a lender in the form of an escrow to pay upcoming taxes and insurance costs. A replacement reserve may be maintained to provide for replacement cost of short-lived components, such as carpets, heating equipment or roofing. Also, a tenant improvement and leasing commission account may be required for future changes in tenancy.

Revenue per Room [REVPAR]
REVPAR is calculated in underwriting (usually hotels) where the gross income is divided by the total number of rooms available (both occupied and unoccupied).