Pro REI Jargon Flashcards
Blast
Email blast, or email sent out to a ton of different investors or buyers
Convo: “Has this been blasted yet?”
“When is this going to be blasted?”
Create urgency. “I wanted you to see this before we blast it out.”
List
Buyer’s list. List of investors that you sell properties to.
EMD, EM, Earnest, Escrow
Earnest Money Deposit
Convo: “Did you get EMD?” Essentially asking, “Is this in?”
Happens over the phone
Hard, Non-refundable
After inspection period, our money is non-refundable.
“Our earnest money is hard.”
HML, HM
Hard Money Lender
Over email or text, not over the phone
Open Escrow
It’s not, “started, beginning, etc.” It’s “opening escrow.”
“Did you get escrow open? Yep, I got escrow open.”
Cashier’s Check (Certified Funds)
It’s as good as cash. When you take a cashier’s check, it will clear immediately.
You want a wire, or cashier’s check, not a personal check to be used.
Post, Post-Possession
When the seller sells you the house, but remains in the house for a certain amount of time after close.
Example: “There is a 30 day post possession on the house. Do you still want to buy it?”
Not desirable because seller might decide that they want to stay
Clear Title
Owner owns it free and clear of any mortgage companies. Don’t have any liens on the home.
Into it For
What you bought it for
Ex) “What’re you into this for?”
Deflect: “On all of our deals, its the same process. We try to buy in bulk. So on all of our deals, its whatever we paid for marketing plus $4,000 is our fee. We are just looking to do volume.”
Cost
Acquisition price
Same as “Into it for.”
Net
Net to seller. If they say they want to “net 150k” and they’re selling it for 150k that means you’re paying for all fees and costs
COE
Close of Escrow
Active
You can purchase it
Pending
Someone else is under contract but its not been purchased
UCB
Under contract accepting backups
Bid
Something you get from a general contractor
Hard Bid
Guaranteed by the contractor. Generally want to go off of hard bids.
Re-Trade
Once you have the property under contract, you go back and try to bring them slightly down on price
Investor to investor term. Internal term
Reduced/ Renegotiated/ New Price
The price has been lowered
Unit Mix
For multi family properties. How many beds and baths in each unit?
“What’s the unit mix?”
Individually Metered
Each unit individually pays their electricity
Chisel
Same as a re-trade
“I’m going to go out and try to chisel off a few bucks.”
Back available
If you sold the contract, and it falls through, you can blast it out again and say “Property back available.”
ARV (After Repair Value)
Once the property is completely fixed up, and completely beautiful, what it would be worth at that point
WP (Wholesale Price)
What you’re selling the property for
Most don’t use this
Bidding War
“We got into a bidding war.”
Master metered
All the properties are on one meter. Landlord typically pays the bill and divides it amongst meter users.
Much less desirable
Off Market
One that is not listed on the MLS
Lock it up
Putting a property under contract
Locked up
Have the property under contract
Tied down
Same thing as locked up
Slide it into the closing docs
You can have them sign additional documents when they sign closing docs. Provide it to the escrow officer
Marketing Agreement
Same thing as an option to sell.
You are given the option to purchase with the whole idea you are going to sell the property. Once you sell the property, you exercise your interest
Option to sell
We don’t want to blast out options that are not exclusive
Get an exclusive option
Exclusive option
You have the exclusive rights to sell the property
Access
What a buyer will call asking for
Essentially saying, “How do I get into the house?”
Supra
A type of lock box
MLS Box
Same thing as Supra
Mechanical
Is this a mechanical lock box?
Vesting
The name or entity they want to purchase the property in
True square footage
There is an addition to a house that hasn’t been placed on tax records
Subs (sub it out)
Short for subcontractor
Sqftage Per
Very important to list the square footage and where we got it from
Accessor site
Appraisal
Owner
Available
People are asking if this property in your wholesale inventory is still for sell
Possession
When do we get possession of the property?
“What’s possession like?”
“Vacant at close” or “Vacant at COE” or “Vacant now”
Vacant?
No one is living in the home
Over wholesale (Price)
“I’ll offer you $7,000 over wholesale.”
I know you’ve already sold it and I’ll give you more if you swing it to me
Walk
Walking away from the deal. Not gonna do it
Scope
Scope of work. Deals with general contractor.
“I like the scope on this one.” Meaning, I like what the property looks like.
Close on ____
What day is the close? We will close on this specific date
First leg
A to B contract
Second leg
B to C contract
Pull the trigger
Buy the house
Rent ready
In the condition right now when you can go in and rent it. A little dirty
Turnkey
A little nicer than rent ready
If you say, “turn key rental” it typically means its a sucky deal.”
Title?
When a buyer asks “Title?” it means what escrow or title company are you using on that particular deal?
Comps
Comparable properties
No Meat on the bone
What a buyer will say when there isn’t enough profit on the deal
Too skinny
Same as meat on the bone
Inventory
All of the wholesale properties you currently have available
Deposit
Earnest money
Repair Estimate
General estimate of bid for repairs
Cabs
Cabinets
Proforma
Multi-family
How much money you’ll make on it over time if you buy and hold it
Steal
Smoking deal
Buying Deep
Bought at a very low price
Nice Catch
Got a good deal
Hoarder House
Stinky and gross with tons of crap
Squatter
Someone who is hanging around the house without paying rent
Foundational Issues
Typically very expensive and unsatisfying to investors
Foundational Cracks
Same as foundational issues
Addition Play
The property could have good value if an addition was added. Typically means the property is squall
Reposition Play
For multi-family housing. Typically rundown properties that can be fixed up and you can charge a greater amount for.
Sticks up
Starting from the dirt. Basically building a home from scratch
Build Play
Same thing as sticks up. Basically nothing on the property but if you build something there is potential to make money
Dated
An old home
Time Capsule
An old home. Old design and old carpet, paint job, etc. A lot needs to be replaced
Needs Everything
Needs to be totally redone. Needs plumbing, electricity, air conditioning, etc.
Fire Burn
A home has suffered fire damage
Tear Down
Essentially nothing of value left. It would need to be torn down and rebuilt
Price you’re selling it for should be cheaper than the lot itself due to demo costs
Scrape and Build
Same as tear down. Need to scrape it all and rebuild
Clean
A little nicer than rent ready
3/2, 2/1, 3/2/2g
of bedrooms, bathrooms, and garages
g = garage in home
c = carport
u = uncovered (driveway is all)
Net Net
What a fix and flipper says when after all expenses they want to profit net x%
“I’m looking to net net 15%”
Daisy chain
When there are multiple people in the process.
People will ask, “Do you have this locked up with the seller directly, or are you daisy chaining this?”
