The Real Estate Investing Dictionary By Adam Bryan ppt

The Real Estate Investing Dictionary By Adam Bryan Smashwords Edition Copyright 2012 Diamondhead Studios by Adam Bryan Smashwords Edition, License Notes This ebook is licensed for your personal enjoyment only. This ebook may not be re-sold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each recipient. If you’re reading this book and did not purchase it, or it was not purchased for your use only, then please return to Smashwords.com and purchase your own copy. Thank you for respecting the hard work of this author. License Notes and Copyright This book is licensed for your personal enjoyment only. This book may not be re-sold or given away to other people even though it may seem tempting at times. If you would like to share this book with another person, please please please purchase an additional copy for each person. If you’re reading this book and did not purchase it, or it was not purchased for your use only, then please return to Diamondhead Studios and purchase your own copy. This book or any portions of it may not be copied without the consent of the author. Thank you for respecting the hard work of this author. He really does appreciate it! Thanks! Before You Begin Thank you so much for getting The Real Estate Investing Dictionary by Adam Bryan. You will truly find this resource to be very helpful and beneficial throughout your real estate investing endeavors. This dictionary is filled with some of the most important real estate investing terms that ever investor must know. Once you go through this dictionary, you will find you real estate investing knowledge to be above far. Thank you so much for reading and enjoy! Adam Bryan Author www.RealAdamBryan.com Plus, once you finish this going through this dictionary, I encourage you to check out my real estate investing blog, http://www.realadambryan.com for investing tips, guides, and information. Thank you so much and I look forward to seeing you on the blog! A ABSOLUTE DOLLARS: The amount of profit dollars in a transaction that it notwithstanding of rate of return ABSOLUTE RETURN: The amount of profit as a percentage of investment notwithstanding of rate of return. Take the dollar amount of the investment divide it by the profit. This will then give you your absolute return as a percentage. ABSTRACT OF TITLE: Historic summary of all the proceedings that affect the title of a property ACCELERATION CLAUSE: A loan provision giving the lender the right to declare the entire amount immediately due and payable upon violation of another particular loan provision ACCRETION: The rights and principles the law uses to deal with the changes in the size and shape of a land due to natural causes ACCRUED INTEREST: Accumulated interest earned or due but has not yet been paid. ACRE: A quantity of land equal to 43,560 square feet. ADDENDUM: Something added as an attachment to a contract ADJUSTABLE RATE MORTGAGE (ARM): A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. ADJUSTED COST BASIS: The original cost plus improvements minus depreciation or cost recovery taken for the property. ADJUSTED GROSS INCOME: The amount of income you have which can be taxes. This is your gross income minus any deductions. AFTER TAX CASH FLOW: The amount of net cash flow remaining after any tax deductions ALIENTATION: To convey or transfer title and possession of a property AMORTIZATION: Gradually paying down a loan balance AMORTIZED LOAN: A loan in which the principal and interest is payable in monthly or other periodic installments over the term of the loan. ANNUAL PERCENTAGE RATE (APR): Rate of interest for a loan per year including fees and points ANNUAL PROPERTY OPERATING DATA: Detailed cash flow analysis of an income property APPRAISAL: Estimating the value of a property APPRAISED VALUE: The estimated current worth of a property APPRAISER: A licensed and/or certified individual who, for a fee, evaluates a property and estimates the property’s value. APPRECIATION: The growth in value of a property. APPURTENANCE: Anything attached to the land, which becomes part of the property such as a fence. ARREARS: The mortgage payment that includes interest from the prior month ASKING PRICE: The market price that a property is being asked for ASSESSED VALUE: The value placed on a property, normally used for taxing purposes ASSESSMENT OF REAL ESTATE: Assessing the value of a property so that it is taxed properly according to its value ASSET: Any possession of value. B BALANCE SHEET: A financial statement that shows assets, liabilities, and net worth. BALOON MORTGAGE: A mortgage loan that requires the remaining balance to be paid at a specific point in time. BALLOON PAYMENT: A loan payment that is larger than normal BANKRUPTCY: The financial inability to pay one's debts when it’s due. BASIC INCOME FORMULA: The calculation used to determine the net operating income on a property BEFORE TAX CASH FLOW: The amount of cash flow while also taking into account any debt services and expenses. This is the final cash flow amount before taxes are taken out. BILL OF SALE: The document used to transfer title to personal property BLANKET MORTGAGE: One mortgage that covers several different pieces of real property. BOND: A securitized I.O.U issued by an entity such as a municipality, government, or corporation. It is basically a debt owed to the bondholder for borrowing the entity. BOUNDS: Boundaries that are natural like trees and artificial like roads BROKER: A state licensed agent who acts for property owners in real estate transactions BUYDOWN: A payment of discount points in exchange for a lower interest rate C CAP:A provision of an adjustable rate mortgage (ARM) that can limit how much the interest rate or loan payment can increase or decrease. CAP RATE: A percentage that shows how much net operating income a rental property produces relative to it’s fair market value or purchase price CAPITAL: Money used for investing purposes or to create income. CAPITAL GAIN: The profit between the total acquisition of cost and net sales price of a property. CASH OUT: Cash given to the borrower from the proceeds of a loan CASH FLOW: Gross income minus operating income and debt services. Can be either positive or negative CASH FLOW STATEMENT: Shows income and expenses from all sources CASH OUT REFINANCE: When a borrower refinances his or her mortgage at a higher amount than the current loan balance with the intention of pulling out money for personal use, such as buying another property or other things CAVEAT EMPTOR: Let the buyer beware. CERTIFICATE OF ELIGIBILITY: A document issued by the Veterans Administration (VA) that certifies whether a veteran is eligible for a VA loan. CERTIFICATE OF REASONABLE VALUE (CRV): Once the appraisal has been performed on a property being bought with a VA loan, the Veterans Administration issues a certificate of reasonable value. CHATTEL: Personal property. CHATTEL MORTGAGE: The mortgage on personal property. CLEAR TITLE: A title that is free of any liens or legal questions as to ownership of the property. CLOSING- The formal meeting where loan documents are signed and funds are paid. CLOSING COSTS: The expenses that borrowers incur to fully complete the loan transaction such as title searches, title insurance, closing fees, recording fees, and processing fees. CLOSING DATE: A predetermined date, agreed to by both the buyer and the seller, that the transaction of buying/selling property will take place. COLLATERAL: Properties or assets pledged to secure a debt in case the borrower cannot repay what was borrowed COMMISSION: A percentage of the purchase price paid to the real estate broker or agent for their services. COMPARABLE MARKET ANALYSIS (CMA): The estimate of fair market value that is determined by comparing the subject property with other comparable properties in the local area. CONCESSIONS: During negotiations, these are the items that each party is willing to give up in order to get the items each party really wants and come to an agreement CONDOMINIUM CONVERSION: Changing the ownership of an existing building, such as a rental property to the condominium form of ownership. Converting from an apartment to a condominium. CONSIDERATION: Anything of value given as an incentive to [...]... unit home where the units share a common wall and are usually side by side E EARNEST MONEY: A deposit of money given by a party to bind the contract, which is usually credited toward the sales price EASEMENT: An interest held by one party in the real property of another, giving that person the legal right to trespass on the other's property EFFECTIVE INTEREST RATE: The interest rate the borrower actually... reasons ESTATE: Ownership interest in real property ESTATE BY THE ENTIRETIES: Ownership by husband and wife with the right of survivorship ESTIMATED ANNUAL GROSS INCOME: The estimate of the total amount of income one will receive in a period of one year ESTOPPEL LETTER: A letter certifying the exact balance of a mortgage or another loanat a certain time ET AL: And others ET UX: And wife EVICTION: The. .. LOAN TO VALUE (LTV): The percentage relationship between the amount of the loan and the appraised value or sales price Basically, it the percentage of debt relative to the property’s purchase price LOAN OFFICER: The person who lends you the loan you’ve requested LOT LINE: The line bounding a property from another M MANAGEMENT AGREEMENT: A contract between the owner of a property and the person that manages... government agency after the unsuccessful sale of a property a t foreclosure auction REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA): A consumer protection law that requires lenders to give borrowers advance notice of any closing costs REAL PROPERTY: Your right to use real estate REALTOR: A real estate broker or agent who is a member of the National Association of Realtors (NAR) Their job is to sell and... evidence of a debt including the amount, interest rate, and term PROPERTY EXCHANGE: The exchange of real estate for other real estate between two or more parties PUBLIC AUCTION: A meeting in a public location to sell property to repay a mortgage that is in default, such as a foreclosed home PURCHASE AGREEMENT: A written contract that is signed by the buyer and seller stating the terms and conditions under... whose claim against the property will be satisfied only after prior mortgages have already been repaid K KICKER: A payment required by the mortgage in addition to the normal principle and interest L LEASE: A contractual agreement between the landlord (lessor) and the tenant (lessee) that allows the tenant to use and occupy the property for a specified period of time LEASEHOLD: The estate in which a... TRUST: An instrument by which a borrower transfers title to a third party or trustee as security for a debt The beneficiary of the trust is normally the lender DEFAULT: Failure to meet all the commitments and obligations specified in the mortgage or deed of trusts DEFLATION: When the amount of money in circulation decreases relative to the supply of a good or service DEPRECIATION: When the value of a property... from real estate property EXCLUSIVE RIGHT TO SELL: A relationship between an agent and his or her principal wherein the agent gets a commission regardless of who sells the property EXCULPATORY CLAUSE: Provisions in a mortgage allowing the borrower to surrender the property to the lender without any personal liability EXPENSES: The costs of maintenance, repairs, insurance, taxes, management, and other... MARGIN: The difference between the interest rate and the index on an adjustable rate mortgage MARKETABLE TITLE: A title free from liens and encumbrances MATURITY: The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable MINIMUM PAYMENT: The minimum amount that must be paid back monthly on an account MORTGAGE: A document that pledges real estate in... DEFAULT: A legal noticed filed by a lender when a borrower cannot abide by the terms of the loan, such as failure to pay back O OPEN LISTING: A brokerage contract that entitles a broker to a commission only if their actions are the procuring cause of a sale OPEN ENDED MORTGAGE: A mortgage that allows the borrower to borrow additional money up to the original amount of the loan This extra borrowing . The Real Estate Investing Dictionary By Adam Bryan Smashwords Edition Copyright 2012 Diamondhead Studios by Adam Bryan Smashwords Edition, License Notes This. the hard work of this author. He really does appreciate it! Thanks! Before You Begin Thank you so much for getting The Real Estate Investing Dictionary by Adam Bryan. You will truly find this. throughout your real estate investing endeavors. This dictionary is filled with some of the most important real estate investing terms that ever investor must know. Once you go through this dictionary,