What your realtor meant when he said:

Balloon payment 
The final payment of the balance due on a partially amortized loan.
Base(in lease terminology)
A face, quoted, dollar amount representing the rate or rent in dollars per square foot per
year and typically referredto as the base rate.

Base rent 
The minimum rent due to the landlord. Typically, it is a fixed amount. This is a face,
quoted, contract amount of periodic rent. The annual base rate is the amount upon which
escalations are calculated.

Basic employment
Employment that is considered to be export-oriented or export-driven, associated with
activities that generate income from the sales of products and services in markets outside
the local economy.

Basis 
The total amount paid for a property, including equity capital and the amount of debt
incurred.

Before-tax investment value 
The sum of the present values of the mortgagor and mortgagee of property.

Break-even point
The stage at which an investment produces an income that is just sufficient to cover
recurring expenditure. For an investment in real property, the point at which gross income
is equal to normal operating expenses, including debt service (the stage at which the next
cash flow becomes positive). Also known as the default point. (Encyclopedia of Real Estate
Terms 2nd Edition, Damien Abbott)

Breakpoint 
The sales threshold over which percentage rent is due. It is calculated by dividing the
annual base rent by the negotiated percentage applied to the tenant’s gross sales.

Business risk 
The uncertainty associated with the possible profit outcomes of a business venture.

Buy/rent threshold
The point at which there is a recognizable shift of expenditure allocations away from owneroccupied housing and to the rental housing market (or vice-versa) as a result of changing
market conditions.

©2001 CCIM Institute. All rights reserved. Version 10/01.
©2002 National Association of REALTORS®. All Rights Reserved.