8020REI Real Estate Dictionary : Knowledge Base

Absentee: An absentee is a property owner who does not reside at the property and is not actively involved in its management.
Action Plan: Essential steps leveraging various marketing channels to identify and connect with potential properties.
Affidavit: A written statement confirmed by oath or affirmation, for use as evidence in court.
Annuity: A fixed sum of money paid to someone each year, typically for the rest of their life.
Appraisal: A professional valuation of a property.
Appreciation: The increase in the value of a property over time.
Assessed Value: The valuation placed on a property by a public tax assessor for purposes of taxation.
Asset: Items of value owned by an individual.
Assignment of Mortgage: A document evidencing the transfer of ownership of a mortgage.
Assumption Fee: A fee a lender charges a buyer who will assume the seller’s existing mortgage.
Avatar: Unique identifier for each property based on the buy box criteria.

Bankruptcy: A legal process where an individual or business can't pay their debts.
Broker: A licensed professional who acts as an intermediary between buyers and sellers of real estate.
Buy Box: Set of criteria that real estate investors use to evaluate potential investment properties.

Case reverse buy box: A process to understand and optimize buy box priorities based on market trends.
Code Violation: A breach of building or safety codes, ordinances, or regulations.

Data Mining: The process of using data analysis techniques to extract valuable insights from large real estate datasets.
Debt Collection: The process of attempting to collect unpaid debts related to property ownership.
DirectONE: Preferred vendor for Direct Mail campaigns.
Distress Points: Key indicators that a property or the surrounding area is experiencing challenges.

Folio: Distinct identification number utilized to uniquely identify properties.

Golden Address: The most recently obtained address as provided by the skip trace vendor.

HiddenGems: Properties that have an UNFORMATTED or UNKNOWN last sale date or years built.
High Equity: The distress that reflects when the market value of a property exceeds the outstanding mortgage or liens against it.

Interfamily Transfer: A property transfer between family members due to various reasons.

Jumbo Loan: A mortgage that is greater than the limits set by the Federal Housing Finance Agency.
Judgment: A decision made by a court or other tribunal that resolves a controversy and determines the rights and obligations of the parties.

Leasehold Estate: A property where the holder has a lease agreement that allows them to use the property for a specified period of time.
Liens: A right to keep possession of property belonging to another person until a debt owed by that person is discharged.
Low Credit/Low ESI: A measure reflecting the financial standing of a seller.

Main distress indicators: Top three data points that could influence a seller's decision.
Mechanic's Lien: A legal claim against a property for unpaid work or materials.
Mortgage: A legal agreement where a bank or other creditor lends money at interest in exchange for taking the title of the debtor's property.
Multifamily: A type of residential property that includes more than one unit for residential inhabitants.

Net Operating Income (NOI): A calculation used in real estate to measure the yearly gross income of an investment property after operating expenses have been deducted, but before deducting taxes and interest payments.

Owner Financing: A property purchase transaction where the property seller provides all or part of the financing.

Property Management: The administration of residential, commercial and/or industrial real estate.
Probate: Legal process in which a will is reviewed to determine whether it is valid and authentic.

Quiet Enjoyment: A right to the undisturbed use and enjoyment of real property by a tenant or landowner.

Real Estate Investment Trust (REIT): A company that owns, operates or finances income-producing real estate.
Retrospective Data: Historical data collected and used for analyzing trends.

Subject To: A type of creative financing where the buyer takes title to the property but the existing loan stays in the name of the seller.
Subprime Mortgage: A type of mortgage that's offered to homebuyers with poor credit.
SystemGPT: An automated system that learns and improves over time.

Tax Certificate: A first-position lien on a property due to unpaid property taxes.
Title: A legal document evidencing a person's right to or ownership of a property.
Transactional Funding: A type of short-term, hard money loan that provides funds for the costs of acquiring a property.

Underwriting: The process by which a mortgage lender determines if the risk of offering a mortgage loan to a particular borrower under certain parameters is acceptable.
Unlawful Detainer: A lawsuit filed by a landlord to evict a tenant who is in breach of the lease agreement.

Vacancy Rate: The percentage of all available units in a rental property, such as a hotel or apartment complex, that are vacant or unoccupied at a particular time.
Virtual Assistant: An independent contractor who provides administrative services to clients while operating outside of the client's office.

Wholesale Real Estate: This is when a real estate wholesaler contracts a home with a seller, markets the home to potential buyers, and then assigns the contract to one of them.

X-efficiency: A concept in economics that refers to the effectiveness with which a given set of inputs are used to produce an output.

Yield: In real estate, yield refers to the earnings generated and realized on an investment over a particular period of time.

Zoning: Zoning refers to municipal or local laws or regulations that dictate how real property can and cannot be used in certain geographic areas.

1099 Form: The form used to report income other than wages, salaries, and tips to the IRS.
401K: A qualified retirement plan that allows eligible employees to make salary deferral contributions on a post-tax and/or pretax basis.
30-60 Days: A property is 30-60 days late on mortgage payments. It's a red flag for potential foreclosure and an opportunity for investors to buy below market value.

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