00 REAL ESTATE & RE INVESTING TERMS Flashcards

Question

Equity:

Answer 1

is ownership. In home ownership, equity refers to how much of your home you actually own-meaning how much of the principal you've paid off. The more equity you have the more financial flexibility you have, as you can refinance against whatever equity you have built. Put another way, equity is the difference between the fair market value of the home and the unpaid balance of the mortgage.

Answer 2

- A home mortgage is a loan given by a bank, mortgage company or other financial institution for the purchase of a residence—either a primary residence, a secondary residence, or an investment residence—in contrast to a piece of commercial or industrial property. - Mortgages are also known as "liens against property" or "claims on property. - With a fixed-rate mortgage, the borrower pays the same interest rate for the life of the loan.

Answer 3

Target Property or Prospect Property

Answer 4

a right to keep possession of property belonging to another person until a debt owed by that person is discharged.

Answer 5

are brought and from the client for us to dial.

Answer 6

(interested only) who has expressed some form of interest in your business.

Answer 7

(motivated seller) matches your ideal client profile and has indicated they’re ready to have conversation about selling or buying.

Answer 8

are required once a potential buyer makes an offer. Typically, they cost a few hundred dollars. The purpose is to check that the house’s plumbing, soundation, appliances, and other features are up to code.

Answer 9

roof, plumbing, kitchen & bath, electrical HVAC system, repainting, flooring, driveway or garage.

Answer 10

doors, windows, cabinet, holes in the wall.

Answer 11

stands for Multiple Listing Service or Multiple Listing System. A website where all the properties that are listed in a given city/state can be found.

Answer 12

A written proposal coming from the buyer to the seller; A proposal that would list down all the necessary details about Real Estate Purchase.

Answer 13

After Repair Value or price after the property has been repaired, rehab or fix & flip.

Answer 14

Comparative Market Analysis: is a report on comparable homes in the area that is used to derive an accurate value for the home in question.

Answer 15

is ownership. In homeownership, equity refers to how much of your home you actually own-meaning how much of the principal you've paid off. The more equity you have the more financial flexibility you have, as you can refinance against whatever equity you have built. Put another way, equity is the difference between the fair market value of the home and the unpaid balance of the mortgage.

Answer 16

is a real estate agent who has passed a state broker's exam and met a minimum number of transactions. These brokers are able to work on their own or hire their own agents.

Answer 17

Many people do not make the distinction between Realtors and real estate investors since they both deal with real estate. However, there is a world of difference in what they do and how they operate, and it is important to understand these differences when you are selling or buying a piece of property. Let’s look at what makes them different.

Answer 18

Real estate agents need to be licensed by the state in which they do business. Real estate investors do not need a real estate license. People always ask me if they need a real estate license to buy and sell properties. The answer is no. You only need a license if you plan to represent someone other than yourself in the purchase and sale of properties.

Answer 19

Both real estate agents and real estate investors earn money on real estate. They just do it in different ways. Agents earn 1-5% commission off every sale they facilitate. Sophisticated investors first decide how much they want to earn then find deals that meet their minimum criteria.

Answer 20

Agents and investors both invest in marketing. Agents typically have websites, business cards and do quite a bit of networking and even some direct mail campaigns. Investors are known by their simple signage. You may see handwritten yard signs in the cities that say: We buy ugly houses.

Answer 21

Real estate agents work under real estate brokers. Once an agent is done with school and has been licensed by the state, he or she has to find a real estate broker to call home. Investors have to make their own way. They are independent individuals who go where the deals are.

Answer 22

When you work with a real estate agent, they will help you sell your property. They will assist with the marketing, staging the home, and showing it to others for you. They strive to make the process of selling as easy as possible. However, the investors are looking to buy from people like you. The real estate agents will try to get you the highest amount possible for your home. The investors will want to negotiate with you to get the lowest possible price for the home you are selling, since they need to make a profit on it.

Answer 23

A Realtor works for a broker and the investors tend to work on their own or in teams/ groups. The investors do not have the same amount of regulation and oversight that the Realtors have since they are working on their own behalf.

Answer 24

As you can see, even though they are both working with real estate, there are many differences between Realtors and investors. However, some realtors are investors too! This gives them a distinct advantage when working with sellers. Not only do they understand both the Realtor and investor side of real estate, they are able to offer sellers more options to meet their needs.

Answer 25

"Wholesaling real estate is when a real estate wholesaler puts a distressed home under contract with the intent to assign that contract to another buyer. They market the property to potential buyers for a higher price then they have the property under contract for."