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.

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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


Landlock

I need a definition for a word. (non-acronym)

Anyone know what "landlock" means?
Is this a situation when you don't have access to a property
and you need a right of way via someone else's property?


sneely5101

Hi sneely5101, lets you and I work together on keeping one another moving forward. I know that "procrastination devil". He's a tricky thing. But the good news is WE can beat him. On a more positive note, WE'VE already beat him! Any and every action we take towards our goal of success knock him down further and further, soon he will be no more than a bad memory and who wants to think about bad memories? Rina said it right, no one can do it for you. No one has to, you already have all you need, GOD and YOU! Suggestion; start out by making a list of professionals you will need to help along the way. You didn't mentioned that you had an problem talking to others so this should be a breeze. A sneely5101 lets stay in contact either by journal or private message. I'm looking for some one to lean on also, if nothing else we can keep on another motivated.
lbrown


Michael,

That definition looks correct. You might want to try Googling it to see if there is any other application in RE. But that is what has always been my understanding of a landlocked piece of property. Sorry we haven't included definitions in here, but the list would probably be literally a mile long.
Actually I do think Anita started one somewhere in the forums. Try doing a search on "terms". if you find it, you could put a link in here, or I could add it to the bottom of the acronyms page.

Thanks,

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


Rina

Thanks alot for your help.

Happy Holidays!


Happy Holidays, Mr. B!

glad to be of assistance. Eye-wink

__________________

"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


Thanks

Great stuff here guys....

Thanks


ECR

ECR = estimated cost to restore is an estimate of rehabiliation costs

__________________

Join my REI group SouthCentralTexas ALL active motivated gogetters welcome Your location is not important.
http://www.deangraziosi.com/og/all?filter0=SouthCentralTexas

You can lead a horse to water but you can't force him to accept money.

-One Step Closer


Tell Me Your Story

Hi Anita,
My name is Quiana and I am new to all of this. I am scared to death about the whole thing, but I keep reading other people's stories, learning that they are no different from me and I get a little encouragement, but I am still scared of failure and making a fool of myself. Please keep in touch with me and let me know how you got started and how it all worked out for you. How long have you been in this? Give me some insight.

Quiana


Abbreviated term

AGI = Adjusted Gross Income


REO Tape

What is an REO Tape? Or... a wholesaler emailed me the other day and the title of the email was "Tape of homes". Does this have something to do with bank owned homes that are not yet listed on the MLS? Or maybe the bank has not yet released them to be sold? I'm just guessing here...but I've run across that term twice within a week.


REO Tape

What is an REO Tape? Or... a wholesaler emailed me the other day and the title of the email was "Tape of homes". Does this have something to do with bank owned homes that are not yet listed on the MLS? Or maybe the bank has not yet released them to be sold? I'm just guessing here...but I've run across that term twice within a week.

Sorry for double post....the website was being really slow.

I saw an ad on Craig's list yesterday again using that word Tape. He had some bulk REO's. So, I still don't know how the word "Tape" refers to Real Estate.


HELPPppppppppppppp

I met this guy who deals with disstress properties. He told me it was come first come, first served I did my reseach in the area when and took a look at some of the properties then I made my offer, but then he sends me an e-mail which i just got this morning, saying he needs to see proof of funds letter from my bank or lender and contact info to go with any written offers. At this point what do I do? Do I need to contact my buyer? If so do we need to make some kind of a contract since am the one who found the person selling and have already placed offers Or is it a loss for me at this point?


Glossary/Terms

What is meant by the phrase, "Hard Money"? I am new to RE investing & am trying to learn all that I can- Paul


acronym list invaluable tool!

Hi,

Thanks to Rina and the other members who asked and contributed to this list! Being so new to real-estate, the acronyms are all new to us. This list is an invaluable too; we've printed it out to quickly refer to any time. Thanks for taking the time to create and maintain this - it's an invaluable reference tool!

--April Smiling


Great!

This is a big help! I keep coming across a different RE acronym everyday , it's great to have a place to go to look it up.

__________________

Dare To Dream & Work To Win


Rina, Thanks, and Again for ALL your Updates and Patience!

Rina,

Thanks Ever So Much.......I was beginning to need a 4" binder for all my notes on these acronyms LOL. Great Updates! Thanks for Your Patience

JJD

Great Success on Your Journey Always!


Do you think this is

Do you think this is possible to work in Hawaii?


KEEP THE SPIRIT!

REE, THANKZ THIS IS GOOD....,

YOU DID THE HOME WORK FOR ALOT OF US LOL HAHA,

it took me right to it..

i just hope you know those terms yourselves cause i am uping the game, & its going down Eye-wink

(yes im black)

keep the spirit rita,
...never let the 'peanut gallery' get u down:)

__________________

A. Short


need some info

i found i great agent and some great deals but the first thing they ask for when buying a r.e.o house is a financial statement. i walked the walk,talked the talk and faked it till where now i'm stuck. i dont want to lose my credibility or trust with these new contacts. any advice?


great info thanks

thanks for the info
regards
tom


WOW!

Thats a whole lot to remember im gona have to make a list one day ill get them all, Thanks everyone.


Gkossary of terms

Thank you Rina, the Glossary is a big help.


Quick and easy

Thanks for the 'cheat sheet'. I've written the acronyms in my note book and can carry it everywhere I go and familiarize the terms


RE Glossary in .pdf file allowed?

Thanks Rina and everybody for this glossary, BIG help!

I took the liberty of copying, formatting and converting it into a 2 page (double sided single sheet) 3 column glossary in a .pdf format file. Does anybody have a reliable place to host it?
Or maybe it can be held on the site somewhere?

Let me know.

Thanks.

Mark

UPDATE: File is attached in next post #151 (http://www.deangraziosi.com/node/3208?page=5#comment-132311)

__________________

Mark K. Cool

Life Disclaimer: Past Failures are NOT indicative of Future Results.

Real Estate Glossary - Click Here for PDF

View My Everyday Blog - Click Here


Real Estate glossary in pdf format is Here

Here's the link:

http://www.deangraziosi.com/ufiles/REglossary.pdf

Print it out for a handy reference.

__________________

Mark K. Cool

Life Disclaimer: Past Failures are NOT indicative of Future Results.

Real Estate Glossary - Click Here for PDF

View My Everyday Blog - Click Here


newbie

Just got my book, really motivated,just have to get my bearings straight,thanks for the glossary. Need all the help I can get, Thanks


BUMP

For all the apprentices Smiling (newbie is a bad word here!)

__________________

"Persistence Pays, Procrastination Delays!" - smurfy

"I can do ALL things through Christ who strengthens me." - Philippians 4:13

"He will keep in perfect peace whose mind is stayed on thee" Isaiah 26:3

"Those who wait on the LORD Shall renew their strength; they shall mount up with wings like eagles, they shall run and not be weary, they shall walk and not faint." Isaiah 40:31

View my journal here: http://www.deangraziosi.com/real-estate-forums/investing-journals/59850/...


GRM

You may have found a definition for this term by now, but if not...

It is a way to value property by using the income and the cost. This is a quote from Google "Houses Under Fifty Thousand | No More Gross Rent Multipliers!" stating is has fallen out of favor in recent years.

"A gross rent multiplier is a crude way to put a value on a property. It is just too simplistic. Suppose two buildings each are selling for eight times their gross annual rent collections. One however, includes all utilities in the rent that tenants pay. That changes things, doesn't it? Of course, you could try to subtract out the utilities, to see what rents would be if they weren't included, and use that for the GRM. But that's not the only problem.

You have to constantly change the GRM expectations to reflect interest rates, because a property might be profitable at 12 times rent when interest rates are low, but a money loser at eight times rent if the financing is expensive. Also, there are just plain different expenses for different properties, whether higher maintenance costs, insurance premiums, or whatever. Gross rent doesn't say much about the factor that really makes a rental property valuable: the net income."

I hope that helps.

__________________

If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125


Just go do it!

We are new to this exciting real estate venture too. But now is the time to go get the necessary knowledge and apply it to deals. Collect $$$ and just repeat!

A&S


Woops

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