Glossary of Terms

This glossary provides definitions of frequently used terms in Real Estate and within the REI BlackBook application.

A | B | C | D | E | F | G - K | L | M - N | O | P | Q | R | S | T | U - V | W | X - Z

A

WORD ACRONYM DEFINITION
Acquisition Cost --- The price and all fees required to obtain a property.
Addendum --- Something added as an attachment to a contract.
Annual Percentage Rate APR Effective rate of interest rate for a loan per year including fees and points, disclosure of which is required by the Truth-in-Lending Law.
Appraised Value --- Opinion or estimate of a value of a property, values are determined by one of three methods: comparable sales (residential), replacement cost (insurance), or income approach (commercial).
Assessed Value --- The value established for property tax purposes.
Assignee --- The person to whom an agreement or contract is sold or transferred.
Assignment --- The method by which a right or contract is transferred.
Assignor --- The person who assigns or transfers an agreement or contract to another.

B

WORD ACRONYM DEFINITION
Balloon Payment ---

An installment payment which is larger (most often much larger) than the other scheduled payments. It is usually the last payment. If a note is written for $50,000 at a fixed 9.0% rate of interest with payments based on an amortization schedule of 30 years and a balloon payment due in 5 years, the first 60 payments will each be $402.31 (the normal payment for a 30 year loan at 9.0% interest) and the last payment will be $47,940.15 which will be the outstanding balance remaining after the 60Loan-to-Value (LTV) - The ratio of the size of the loan to the value of the property. If the loan is $80,000 and the value of the property is $100,000 the LTV is 80% ($80,000 / $100,000) of the payment.

Bird Dog --- Someone who identifies as potential good real estate investment opportunity and passes that deal on to another investor for a fee
Bandit Signs on Wheels BSOW An easy-to-install vinyl decal that is places on the rear window of a vehicle to market your business.

C

WORD ACRONYM DEFINITION
Callflow ---

The automation process that takes place when someone CALLS your Profit Dial number.

Contingency --- A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchasers obtains a satisfactory home inspection report from a qualified home inspector.

D

WORD ACRONYM DEFINITION
Data Append ---

Taking known suspect data and matching it against a vendor's database to obtain phone numbers and / or email address.

Direct Mail --- Sending printed postcards or brochures through the mail to help reach potential new clients.

E

WORD ACRONYM DEFINITION
Earnest Money ---

A deposit made by purchaser of real estate to show good faith.

Equity --- The value of the unencumbered interest in real estate as determined by subtracting the total of the unpaid mortgage balances plus the sum of any current liens against the property from the property's fair market value.

F

WORD ACRONYM DEFINITION
For Rent By Owner FRBO

A property from which the owner receives payment from the occupant(s), known as tenants, in return for occupying or using the property. ... The owner of rental property may be allowed to take certain tax deductions such as mortgage interest and depreciation. real estate agent

For Sale By Owner FSBO The process of selling real estate without the representation of a real estate broker or real estate agent.

G - K

WORD ACRONYM DEFINITION
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L

WORD ACRONYM DEFINITION
Lead --- A prospect that has raised their hand and is in need of your service.
Lessee --- A person to whom property is rented under a lease.
Lessor --- One who rents property to another under a lease.
Letter of Intent --- Written expression of desire to enter into a contract without actually doing so.
 Loan-to-Value LTV The ratio of the size of the load to the value of the property. If the loan is $80,000 and the value of the property is $100,000 the LTV is 80% ($80,000 / $100,000).

M - N

WORD ACRONYM DEFINITION
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O

WORD ACRONYM DEFINITION
Owner Financing
(Seller Financing)
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A method in which a buyer borrows from and makes payments to the seller instead of a bank.  Sometimes you take over the seller's payments.  Can be done when a buyer cannot qualify for a bank loan for the full amount.  Also referred to as Seller's Financing.

P

WORD ACRONYM DEFINITION
Pay Per Click PPC

A model of internet marketing in which advertisers pay a fee each time one of their ads is clicked.

Probate --- The process of establishing the validity of a will before a duly authorized court or person.  Once validity is confirmed, the probate court then administers the sale of property as directed by the will or as authorized by the court to settle any financial obligations.
Profit Dial PD A phone automation system that allows you to track calls, smart route calls, send text & voice broadcasts, send RVMs, and create automated follow-up to potential prospects.
 Prospect --- A suspect that has responded to your marketing.

Q

WORD ACRONYM DEFINITION
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R

WORD ACRONYM DEFINITION
Redemption Period ---

The period during which a former owner can reclaim foreclosed property.

Ringless Voice Mail RVM A method in which a pre-recorded audio message in placed in a voicemail inbox without the associated telephone ringing first.

S

WORD ACRONYM DEFINITION
Sandwich Lease ---

Lease held by a lessee (tenant) who becomes a lessor (landlord) by subletting to another lessee (subtenant), typically the sandwich leaseholder is neither the owner nor the user of the property.

Search Engine Optimization SEO

The process of maximizing the number of visitors to a particular website by ensuring that the site appears high on the list of results returned by a search engine.

Short Sale ---

A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments.  By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes.

Skip Trace ---

A basic, but very effective concept to find property owners. The whole idea behind it is to get an alternate address for abandoned or vacant property owners whom you are having trouble finding.

Stealth Mail  --- Also known as Ringless Voice Mail. 
Suspect --- A name / number of someone you think may turn into a prospect.

T

WORD ACRONYM DEFINITION
Tenant Buyer TB

A tenant buyer is a future purchaser that has the option to purchases a property at an agreed price within an agreed timescale.  Durning this time they will have many of the benefits of a traditional homeowner without having to qualify for a mortgage to get started.

U - V

WORD ACRONYM DEFINITION
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W

WORD ACRONYM DEFINITION
Wholesale ---

To contract a property with the intention of reselling it quickly at a higher price.

Workflow ---

The automation process that takes place when someone sends a text to your Profit Dial number, fills out your webfrom, or you manually trigger the flow.

X - Z

WORD ACRONYM DEFINITION
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