Key terms

Question 1

ARV

Answer 1

“After repair value” (The value of a house after rehab) what it will go for on the retail market

Question 2

Absentee Owner

Answer 2

Homeowner who owns multiple properties outside of their primary residence (also called a homestead)

Question 3

Assignment

Answer 3

The method by which a right or contract is transferred (i.e a contract)

Question 4

Buyer

Answer 4

person or entity who will buy your wholesale deals (typically wholesale investor or rehaber)

Question 5

Backyard

Answer 5

Your local real estate market

Question 6

Buy-N-hold

Answer 6

real estate investor keeps the property as a rental

Question 7

Closing

Answer 7

process when legal due diligence is done by a title company or closing attorney for the ownership of a piece of real estate to transfer

Question 8

Closing cost

Answer 8

fees that a title company or real estate attorney charges to conduct a rule of state closing

Question 9

Contract

Answer 9

An agreement between a seller and buyer in order to initiate selling of a piece of real estate

Question 10

Due diligence period

Answer 10

Period of time a real estate investor has to do their research on a piece of real estate and able to walk away without penalty

Question 11

Earnest Money Deposit

Answer 11

Buyer gives a seller a deposit in order to show seriousness of buying the property from them

Question 12

Equity

Answer 12

Difference between a properties market value and mortgage that is owed on the property

Question 13

Foreclosure

Answer 13

when a bank has taken back ownership to a property due to unpaid mortgage payments.

Question 14

Flip

Answer 14

An investor rehabs a property and sells it for profit on the market

Question 15

HVAC

Answer 15

(Heating, Ventilation, and air conditioning) Heating and cooling system in a property(major repair)

Question 16

Investor Comps

Answer 16

Like homes in the area of the property you are assessing (within the last 6 months to a year)

Question 17

JV

Answer 17

(Joint venture) Two or more wholesalers team up to sale a deal

Question 18

Leads

Answer 18

Properties you target in your market

Question 19

Market

Answer 19

geographical area you target in your marketing or the geographical area you invest in

Question 20

Marketing

Answer 20

Method used to tell the world what you have to offer

Question 21

Motivated seller

Answer 21

Person who needs to sell their home immediately due to a life changing situation or financial need

Question 22

Marketing campaign

Answer 22

You market to a set of leads repeatedly over a period of time

Question 23

Major systems

Answer 23

term used for HVAC system, electrical systems, or plumbing systems (all considered major repairs)

Question 24

Motivation

Answer 24

Term used to gauge how immediate the seller needs to sell their property (measured by price they are willing to sell their house at)

Question 25

Pre foreclosure

Answer 25

Beginning stage of foreclosure process. Homeowner is many mortgage payments behind and the bank has files paperwork to the court to start process

Question 26

Probate

Answer 26

court process where the estate of a diseased person is resolved including real estate

Question 27

Property walk thru

Answer 27

physically walk through property to look at the estate of it

Question 28

Repair costs

Answer 28

how much it’ll cost to get a home to living or market conditions

Question 29

Retail comps

Answer 29

(retail comparable sales) comps in an area of a home assessing (homes fixed up to market condition and sold recently) use to gauge how much you will sell it for in the retail market

Question 30

Reia

Answer 30

(Real estate investors association) orgs providing networking, training programs, educational programs, e.c.t

Question 31

Seller

Answer 31

Legal homeowner of property or person who has legal right to sell property

Question 32

Title company

Answer 32

Business that conducts real estate closing. Does all of legal due diligence.

Question 33

Title search

Answer 33

Your real estate attorney or title company will do a complete activity history of the piece of real estate (Mortgage history, lien history, e.c.t)