Glossary of Real Estate Terms

Glossary of Real Estate Terms

GLOSSARY of real estate acronyms. Someone had mentioned it was hard to follow when just acronyms were used in posts. If you want to add to or have a question, leave a post and we'll edit it in.

*********************************
AFD = Agreement For Deed

AFF = Automated Foreclosure Finder

AITD = All Inclusive Trust Deed

AMR = Anticipated Market Value

APN# = Assessors Parcel Number

APR = Annual Percentage Rate

ARM = Adjustable rate mortgage

ARV = After Repair Value

ASP = Anticipated Selling Price

BARM = Be a Real Estate Millionaire (Dean's book. JUST in case anyone didn't know Smiling)

BOM = Back On Market

BOR = Board of Realtors

BPO = Broker's Price Opinion

CAD = County Appraisal District

Cap = Capitalization

CAP = Cap Rate (NOI / Price)

CCIM = Certified Commercial Investment Member

CCR = Conditions, Covenants, and Restrictions

CDA = Confidential Disclosure Agreement

CFD = Contract for Deed

CLTV = combined loan to value. This is if you have a 1st and 2nd or HELOC on your home, it is the combined amount owned compared to the value of your home.

CMA = Comparative Market Analysis

COCR = Cash on Cash Return

COE = Close Of Escrow

COF = Cost of Funds

COO = Certificate of Occupancy

CPI = Consumer Price Index

CRB = Certified Residential Broker

CRE = Creative Real Estate

CRS = Certified Residential Specialist

DBA = Doing Business As

DCR = Debt Coverage Ratio

DIL = Deed In Lieu

DOM = Days on Market

DOS = Due On Sale Clause

DOT = Deed of Trust

DSCR = Debt Service Coverage Ratio

EM = Earnest Money

FAL = Foreclosure Alert

FCRA = Fair Credit Reporting Act

FFE = Furniture, Fixture, and Equipment

FHA = Federal Housing Administration

FHLMC = Federal Home Loan Mortgage Corporation, Freddie Mac

FMR = Fair Market Rent

FMV = Fair Market Value

FNMA = (Fannie Mae) - Federal National Mortgage Association

FRBO = For Rent by Owner

FSBO = For Sale By Owner

GMAC = General Motors Acceptance Corporation

GRM = Gross Rent Multiplier, is the price divided by the total rent. The problem with it (as opposed to the cap rate) is that it does NOT include an info on expenses

HELOC = Home Equity Line of Credit

HML = Hard money lender

HOA = Homeowners Association

HUD = Housing and Urban Development

HVAC = Heating, Ventilation and Air Conditioning

IEE = Instant Equity Exchange

IRA = Individual Retirement Account

IRC = Internal Revenue Code

IRR = Internal Rate of Return

IRS = Internal Revenue Service

L/O = Lease Option

L/P = Lease Purchase

L/S = Landlord Seller

LIBOR = London Interbank Offering Rate

LLC = Limited Liability Company

LO = Lease Option

LOA = Letter of Authorization

LOC = Line of Credit

LOI = Letter of Intent

LP = Limited Partnership

LPOA = Limited Power of Attorney

LTV = Loan-to-value ratio

MAI = Member Appraisal Institute

MAO = Maxium Allowable Offer (Typically if you can get it, it is 30% off the ARV less repairs)

MFL = Maximum Foreseeable Loss

MIP = Mortgage Insurance Premium

MLS = Multiple Listing Service

MUD = Municipal Utility District

NAR = National Association of Realtors

NDA = Non-disclosure Agreement
(also known as a confidentiality agreement)

NIV = No Income Verification

NMD = No money down

NNN = Triple Net Lease

NOD = Notice of Default

NOI = Net Operating Income (Total Income minus all expenses EXCEPT debt service)

NOO = Non Owner Occupied

NTS = notice of trustee sale

O/F = Owner Finance

OBO = Or best offer

OO = Owner Occupied

OPM = Other people's money

P&S = Purchase and Sale

PFC = Prepaid Financial Charge

PITI = principal, interest, taxes, & insurance

PMI = Private mortgage insurance

PML = Private Money Lender

POA = Power of Attorney

PR = Primary Residence

PUD = Planned Unit Development

REI = Real Estate Investing / Real Estate Investor

REIA = Real Estate Investors Association

REIT = Real Estate Investment Trust

REO = Real estate owned

ROI = Return On Investment

RTO = Rent to Own

SBA = Small Business Administration

SBC = Small Balance Commercial (under 5 million)

SEC = US Securities and Exchange Commission

SFH = Single Family House

SFR = Single-family residence

Sub2 = Buying property subject to existing financing

T/B = Tenant Buyer

TAA = Texas Apartment Association

TAR = Texas Association of Realtors

TAV = Tax Assessed Value

TIL = Truth In Lending

TREC = Texas Real Estate Commission

UBIT = Unrelated Business Income Tax

UCC = Uniform Commercial Code

VA = Department of Veterans Affairs / Veterans Administration

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


thank you

Every time I need something on this site and I go looking for answers ... there you are and I want you to know how appreciated you are!


Thank you, Angela...

That means a lot...
And thank you, too, for the support you've shown to others on the site. That's what family does, build each other up. Smiling

Love ya,

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


listings/ property forclosures,bankrupcies

I am just getting started and I'm having a tough time finding information on the inter net that's free. Are there any websites that provide free public information? Every time I see a website that says there is no cost, there winds up being a catch and requiring a credit card number asking for some kind of fee..


I think I have one that was missed.

OK. I see this abbr. in some ads. What does OBO mean. I saw it on a few different ads and am lost as to what that means.
Kingjuss,

__________________

I got my mind made up.....

www.Kingjussinvestors.com
www.jussinvestors.com (buyers site)


OBO

Pretty sure it's "Or Best Offer". I'll add it.
Thanks, Kingjuss

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


OBO

Yeah.. it means Or Best Offer.. But I always wondered..

If someone writes 5000 OBO.. Is that OBO above or below 5000?? I guess below right??


Hmmm... never thought about that.

I guess it could mean either. But they probably mean as close to their asking price as they can get, below. Hey, good way to start a bidding war, though, in a good market.

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


Yeah...

If someone says they will take 5000... then why would you offer MORE than 5000??


Ur welcome Rina

I just was wondering what it meant. Thank you for letting me know what it meant. We got one more added to the list. So it works out for everyone, one way or the other. Thanks again Rina.
Kingjuss,

__________________

I got my mind made up.....

www.Kingjussinvestors.com
www.jussinvestors.com (buyers site)


Just what I been looking for

I'm glad I found this thread. Because there was a whole bunch of real estate terms that I just didn't get (since I'm just getting started in all), and with this I can be sure I'll understand them now. Thanks again, and I'd expect nothing less from one of the few real estate prodigies on this website. God bless!

__________________

"Open minds backed by knowledge, wisdom, persistence, and determination equals unstoppable excellence"

- wrecklessKane


New to REI and just lost my job!

Hello.
I first want to say thank you for all the informative comments and advice. I am new to REI and just lost my job. I bought BARM two weeks ago and I am almost finished. Since then, I have been meeting new agents, brokers, and getting out there with my wife even children sometimes looking for the winning deal/s.

However, in spite of this, I just lost my job after giving them my all. So my only fear is that I have 3 children that have needs. I am not lazy. I just feel like I kind of been running around like a chicken with no head. I am looking for a job right now, reading the rest of BARM, even outloud to my wife while she is cooking dinner to save time. We have about four months of financial cushion that will pay for rent and most utilities and are trying to cut back on anything not needed. I could not come up with the money for the mentoring program, so we are winging it. My FICO is at 640 right now, I have no extra money, and every home Lender/Bank demanded a down payment(FHA) whether it be a HUD, foreclosure, seriously NOT updated and way under market value properties.

From what I have learned thus far I am thinking Creative/Seller Financing, Investor Partnerships, Birddogging, and even wholesaleing if possible. I am not going to quit; however, I am pressed for time...and stressed a little.
Please provide any wisdom you can to this. Thank you.
Don

__________________

Don and Paula


Hi, Don!

It must be very stressful for you right now! Just keep your head up and spirit up. Come here as often as you can and learn. I am sure very soon you will start to have some ideas where you can start. Because I was in the same boat and just figured out some directions that fit me. I am new too. A few months ago, my husband and I were struggling too, bills were up to our eyes, we had to work extra hard to survive. But we're always conviced the real estate is the direction for us especially right now. We'll and you will too learn as we're doing it. Just have FAITH!


BREAKING NEWS! I FOUND A NEW JOB!

Thank you so much for the support. I am happy to say as of yesterday that I found a new job in this difficult job market. Thank GOD! We can now focus more clearly on REI part-time with bills being paid.
--Don

__________________

Don and Paula


congratulations Don and Paula

Rina,

Just learned this one today!

NTS = notice of trustee sale Cool

Niki


Thanks, Niki, for the

Thanks, Niki, for the contribution!

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


sooner8980

i believe it is called .gov !


Tax proration

I see in many of the REO listings this statement--- "Taxes Prorated at 100% of latest bill". Does anyone have some insight on this ?

Thx, Bruce


Tax Proration Question

Hello Bruce,

The tax pro-rated at 100% of latest bill means you will be credited for unpaid and accrued property tax based on the most recent bill at closing. Thus, if you close on a property on February 1 they would credit you the entire month of January at closing (31 days). The way to calculate it for each property you are interested in, is look for the tax information on your county's assessor or treasurer website. They should have the most recent tax bill. Then divided the number by 365 (365 days in a year). For each day since January 1 to closing you will be credited the tax accrued by not yet paid. If you can not find the information on line, you can call them directly and usually they are very helpful in providing the tax amount. I hope this helps. Good luck Smiling

__________________

YOU TUBE CHANNEL - Follow me on my You Tube Channel at Joe Jurek Real Estate Investing Adventures
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TWITTER - Follow me on Twitter at Joe Jurek CPA
Joe Jurek CPA
https://twitter.com/JoeJurekCPA


I just want to thank all the

I just want to thank all the contributors for the information.God Bless


Great site for information

I used the site again today to look up something. Thanks for the insight, information and contributions. Believe and Achieve! Smiling

__________________

YOU TUBE CHANNEL - Follow me on my You Tube Channel at Joe Jurek Real Estate Investing Adventures
https://www.youtube.com/channel/UCiko62V79zLKX_owbirAYNA

TWITTER - Follow me on Twitter at Joe Jurek CPA
Joe Jurek CPA
https://twitter.com/JoeJurekCPA


NEW KID ON THE BLOCK

Hi,I'm new still reading the books I'm a little overwhelmed with this whole process I really want to do this!!! I need a Mentor or some type of guidence in order put everything into perspective on what comes first, second and so on. To esablish some type of solid foundation to work from. My faith and determination is strong at this point the guidence that brought me to this here is nothing short of Devine intervention. When! (not if) when! this works out it will make for a great testimony. When I become overwhelmed, frustrated, disgusted. Where or to whom Can I turn to get some Help.

Thanks in advance Thomas


Glossary of Real Estate Terms

Rina wrote:
GLOSSARY of real estate acronyms. Someone had mentioned it was hard to follow when just acronyms were used in posts. If you want to add to or have a question, leave a post and we'll edit it in.

*********************************
AFD = Agreement For Deed

AFF = Automated Foreclosure Finder

AITD = All Inclusive Trust Deed

AMR = Anticipated Market Value

APN# = Assessors Parcel Number

APR = Annual Percentage Rate

ARM = Adjustable rate mortgage

ARV = After Repair Value

ASP = Anticipated Selling Price

BARM = Be a Real Estate Millionaire (Dean's book. JUST in case anyone didn't know Smiling)

BOM = Back On Market

BOR = Board of Realtors

BPO = Broker's Price Opinion

CAD = County Appraisal District

Cap = Capitalization

CAP = Cap Rate (NOI / Price)

CCIM = Certified Commercial Investment Member

CCR = Conditions, Covenants, and Restrictions

CDA = Confidential Disclosure Agreement

CFD = Contract for Deed

CLTV = combined loan to value. This is if you have a 1st and 2nd or HELOC on your home, it is the combined amount owned compared to the value of your home.

CMA = Comparative Market Analysis

COCR = Cash on Cash Return

COE = Close Of Escrow

COF = Cost of Funds

COO = Certificate of Occupancy

CPI = Consumer Price Index

CRB = Certified Residential Broker

CRE = Creative Real Estate

CRS = Certified Residential Specialist

DBA = Doing Business As

DCR = Debt Coverage Ratio

DOM = Days on Market

DOS = Due On Sale Clause

DOT = Deed of Trust

DSCR = Debt Service Coverage Ratio

EM = Earnest Money

FAL = Foreclosure Alert

FCRA = Fair Credit Reporting Act

FFE = Furniture, Fixture, and Equipment

FHA = Federal Housing Administration

FHLMC = Federal Home Loan Mortgage Corporation, Freddie Mac

FMR = Fair Market Rent

FMV = Fair Market Value

FNMA = (Fannie Mae) - Federal National Mortgage Association

FRBO = For Rent by Owner

FSBO = For Sale By Owner

GMAC = General Motors Acceptance Corporation

GRM = Gross Rent Multiplier, is the price divided by the total rent. The problem with it (as opposed to the cap rate) is that it does NOT include an info on expenses

HELOC = Home Equity Line of Credit

HML = Hard money lender

HOA = Homeowners Association

HUD = Housing and Urban Development

HVAC = Heating, Ventilation and Air Conditioning

IEE = Instant Equity Exchange

IRA = Individual Retirement Account

IRC = Internal Revenue Code

IRR = Internal Rate of Return

IRS = Internal Revenue Service

L/O = Lease Option

L/P = Lease Purchase

L/S = Landlord Seller

LIBOR = London Interbank Offering Rate

LLC = Limited Liability Company

LO = Lease Option

LOA = Letter of Authorization

LOC = Line of Credit

LOI = Letter of Intent

LP = Limited Partnership

LPOA = Limited Power of Attorney

LTV = Loan-to-value ratio

MAI = Member Appraisal Institute

MAO = Maxium Allowable Offer (Typically if you can get it, it is 30% off the ARV less repairs)

MIP = Mortgage Insurance Premium

MLS = Multiple Listing Service

MUD = Municipal Utility District

NAR = National Association of Realtors

NDA = Non-disclosure Agreement
(also known as a confidentiality agreement)

NIV = No Income Verification

NMD = No money down

NNN = Triple Net Lease

NOD = Notice of Default

NOI = Net Operating Income (Total Income minus all expenses EXCEPT debt service)

NOO = Non Owner Occupied

NTS = notice of trustee sale

O/F = Owner Finance

OBO = Or best offer

OO = Owner Occupied

OPM = Other people's money

P&S = Purchase and Sale

PITI = principal, interest, taxes, & insurance

PMI = Private mortgage insurance

POA = Power of Attorney

PR = Primary Residence

PUD = Planned Unit Development

REI = Real Estate Investing / Real Estate Investor

REIA = Real Estate Investors Association

REIT = Real Estate Investment Trust

REO = Real estate owned

ROI = Return On Investment

RTO = Rent to Own

SBA = Small Business Administration

SBC = Small Balance Commercial (under 5 million)

SEC = US Securities and Exchange Commission

SFH = Single Family House

SFR = Single-family residence

Sub2 = Buying property subject to existing financing

T/B = Tenant Buyer

TAA = Texas Apartment Association

TAR = Texas Association of Realtors

TIL = Truth In Lending

TREC = Texas Real Estate Commission

UBIT = Unrelated Business Income Tax

UCC = Uniform Commercial Code

VA = Department of Veterans Affairs / Veterans Administration

HOLA como estas Rina Creative artistic open minded
Entrepreneurist*B Excellente info (knowledge) Gracias

__________________

STICKS WIZZARD DRAGON the ENCHANTMENT OF SPIRITUAL ARTISTIC PASSION


RE terms

Now we know where the ankle biters found text typing and i thought,LOL meant a lot of love! I was wrong laughing with you.Our world changes by the second and i do hope the best for YOU!

randster


Agents

Hi,
My name is Arbra. I bought the books and the foreclosure alert services. I got an agent to assist me in bidding on some property and she doesn't seem to be aware of any of the steps suggested in the book. I am getting ready to go to real estate school to get my license. Don't they teach you some of the basicconcepts Dean talk about inthe the book?
Arbra


Wikipedia to glossary of terms?

Thanks for the glossary of real estate terms. Is there also a wikipedia to these terms? Something that will help me remember what each of these do in the real estate world? My first post and am loving the book, the edge and the website... Thank you Dean and gang. I'm absorbing like a sponge.

Barbara

__________________

Owen Properties, LLC


Thanks for this list!

A term Dean uses in one of his "Deal of the Month" vids is 'Equity Partner'. Will you please explain this and include it in your list? (EP)?

Off topic: I ordered the two books this morning and they will not arrive for 2 to 4 weeks. Any suggestions as to what I could be doing to advance my knowlege/ prepare things in my life to hit the ground running once the books arrive and I read them?

Thank you!
Rob


Thanks for the list

Hi, I am just getting my feet wet in all this information that I have taken in. I am putting it to work now! I am very excited about it! I see so much potential in the market around me. Now, is the hard part,,,getting the backing for the property! LOL But I know, like everyone else,,,you have to do the work and research on the market around you and know when to make a offer!
well, thanks again for your list,,,,that's what a needed in order to know the terms.


Thanks

Thanks Rina for the list

God Bless


seasoning

what does the term "seasoning" mean ?

__________________

Dave & Gay
Lloyd Properties, LLC


I do almost did a mentor

I do almost did a mentor program that was going to cost me $6500 but backed out because after I researched and found out others thought it was a scam and didn't learn anything. It was for real estate mentors who were supposed to be millionaires who have done it all. but after researching I found out they weren't nothing more but certified people that took a course on how to sell a product!! thankfully I didn't do it and found this site to help me out!!

__________________

Don't let something temporary, keep you out of the game permanent.

Spencer's Investing, LLC