Key terms Flashcards
ARV
“After repair value” (The value of a house after rehab) what it will go for on the retail market
Absentee Owner
Homeowner who owns multiple properties outside of their primary residence (also called a homestead)
Assignment
The method by which a right or contract is transferred (i.e a contract)
Buyer
person or entity who will buy your wholesale deals (typically wholesale investor or rehaber)
Backyard
Your local real estate market
Buy-N-hold
real estate investor keeps the property as a rental
Closing
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
Closing cost
fees that a title company or real estate attorney charges to conduct a rule of state closing
Contract
An agreement between a seller and buyer in order to initiate selling of a piece of real estate
Due diligence period
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
Earnest Money Deposit
Buyer gives a seller a deposit in order to show seriousness of buying the property from them
Equity
Difference between a properties market value and mortgage that is owed on the property
Foreclosure
when a bank has taken back ownership to a property due to unpaid mortgage payments.
Flip
An investor rehabs a property and sells it for profit on the market
HVAC
(Heating, Ventilation, and air conditioning) Heating and cooling system in a property(major repair)
Investor Comps
Like homes in the area of the property you are assessing (within the last 6 months to a year)
JV
(Joint venture) Two or more wholesalers team up to sale a deal
Leads
Properties you target in your market
Market
geographical area you target in your marketing or the geographical area you invest in
Marketing
Method used to tell the world what you have to offer
Motivated seller
Person who needs to sell their home immediately due to a life changing situation or financial need
Marketing campaign
You market to a set of leads repeatedly over a period of time
Major systems
term used for HVAC system, electrical systems, or plumbing systems (all considered major repairs)
Motivation
Term used to gauge how immediate the seller needs to sell their property (measured by price they are willing to sell their house at)
Pre foreclosure
Beginning stage of foreclosure process. Homeowner is many mortgage payments behind and the bank has files paperwork to the court to start process
Probate
court process where the estate of a diseased person is resolved including real estate
Property walk thru
physically walk through property to look at the estate of it
Repair costs
how much it’ll cost to get a home to living or market conditions
Retail comps
(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
Reia
(Real estate investors association) orgs providing networking, training programs, educational programs, e.c.t
Seller
Legal homeowner of property or person who has legal right to sell property
Title company
Business that conducts real estate closing. Does all of legal due diligence.
Title search
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)
