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Real Estate Glossary
A – As-Is Condition
A term used when a property is sold in its current state, without any repairs or improvements made by the seller.
B – Buy-and-Hold Investor
An investor who purchases properties with the intention of renting them out for long-term income rather than flipping them.
C – Cash Buyer
A person or company that purchases real estate without needing a mortgage or financing.
C – Closing Costs
Fees associated with the finalization of a real estate transaction, including title insurance, taxes, and lender fees.
D – Due Diligence
The process of researching a property, its condition, title, and legal status before completing a real estate transaction.
E – Equity
The difference between the market value of a property and the amount still owed on its mortgage.
F – Foreclosure
The legal process by which a lender takes control of a property when the owner fails to make mortgage payments.
G – Gross Rent Multiplier (GRM)
A metric used by real estate investors to evaluate rental properties, calculated by dividing the property’s price by its annual rental income.
H – Hard Money Loan
A short-term loan secured by real estate, often used by investors who need quick funding.
I – Investor Network
A group of vetted real estate investors who purchase off-market properties for cash.
L – Lien
A legal claim against a property due to unpaid debts or obligations.
M – Market Value
The estimated price a property would sell for in the current real estate market.
N – Net Operating Income (NOI)
A measure of a property’s profitability, calculated by subtracting operating expenses from gross rental income.
O – Off-Market Property
A property that is not listed publicly on the Multiple Listing Service (MLS) but is available for sale through private channels.
P – Pre-Foreclosure
The stage before foreclosure when a homeowner has missed mortgage payments but still has the opportunity to sell the home.
P – Property Flipping
The practice of purchasing a property, improving it, and reselling it quickly for a profit.
Q – Quitclaim Deed
A legal document used to transfer property ownership quickly without guaranteeing the title is clear of liens or claims.
R – ROI (Return on Investment)
A measure of the profitability of an investment, calculated as the gain from investment minus cost, divided by cost.
S – Short Sale
A sale in which a homeowner sells their property for less than the amount owed on their mortgage, typically with lender approval.
T – Title Search
A review of public records to ensure that a property is legally owned and has no unresolved claims or liens.
U – Underwriting
The process a lender uses to evaluate a borrower’s risk before approving a mortgage loan.
W – Wholesale Real Estate
A strategy where an investor secures a contract on a property and sells it to another buyer, often for a fee.