Investment Glossary:

A | B | C | D | E | F | G | H | I | J | K | L

M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

O

Obligee:  The person in whose favor an obligation is entered into.

Obligor:  The person who binds himself or herself to another.

Opportunity Cost: The amount of return from a real property investment that is distributed entirely to preferred investors until these investors have received a specified return on their investment.

Option:  The right to purchase or lease a property upon specified terms within a specified period of time

Ordinances:  Municipal rules governing the use of land

Origination Fee:  The fee charged by a lender to prepare loan documents, make credit checks, inspect and sometimes appraise a property being considered for a new loan. Usually, it computed as a percentage of the face value of the loan.  The amount varies according to various factors, including whether the loan is being placed in the prime or sub prime market.  Not every loan has an origination fee.

Originator:  An individual who works with a borrower to start a loan. Usually an employee of a financial institution, an employee of a broker or an independent contractor affiliated with several brokers, the originator determines the type of loan a borrower probably qualifies for, helps complete an accurate application, and gathers documents necessary to get an approval and acts as an intermediary between the borrower and the underwriter.

Overall Capitalization Rate:  A market-derived capitalization rate based on the sale prices and rental rates at comparable properties.  The rate is calculated by dividing the net operating income of sale properties by their sale prices. 

Overall Rate of Return:  A market-derived capitalization rate based on the sale prices and rental rates at comparable properties.  The rate is calculated by dividing the net operating income of sale properties by their sale prices.