1. Amenity: A feature or service that enhances the value or desirability of a property. Example: The luxury condo complex boasts amenities such as a pool, fitness center, and concierge service.
2. ARV (After Repair Value): The estimated value of a property after it has been renovated or repaired. Example: The investor calculated the ARV of the house before deciding on the renovation budget.
3. Cap rate (Capitalization rate): The rate of return on a real estate investment, calculated by dividing the property’s net operating income by its purchase price. Example: The cap rate for the commercial property was 7%, making it an attractive investment opportunity.
4. CMA (Comparative Market Analysis): A report that provides information on recently sold properties similar to the subject property, used to determine its market value. Example: The real estate agent prepared a CMA for the homeowner to help them set the listing price.
5. Due diligence: The process of investigating and assessing a property before making a purchase or investment decision. Example: The buyer conducted thorough due diligence, including inspections and reviewing financial records, before finalizing the deal.
6. Equity: The difference between the market value of a property and the outstanding mortgage balance. Example: Over time, homeowners can build equity in their property as its value appreciates and they pay down their mortgage.
7. FSBO (For Sale By Owner): When a property is being sold directly by the owner without the representation of a real estate agent. Example: The seller decided to list their property as an FSBO to avoid paying a commission to an agent.
8. HVAC (Heating, Ventilation, and Air Conditioning): The system responsible for regulating the temperature, humidity, and air quality in a building. Example: The property’s HVAC system needed repairs to ensure optimal comfort for potential buyers.
9. LTV (Loan-to-Value): The ratio between the loan amount and the appraised value of a property, used by lenders to assess the risk of a mortgage loan. Example: The bank approved a mortgage with an 80% LTV, requiring the borrower to provide a 20% down payment.
10. NOI (Net Operating Income): The income generated by a property after deducting operating expenses but before considering mortgage payments or income taxes. Example: The investor analyzed the property’s NOI to determine its profitability.
11. PITI (Principal, Interest, Taxes, and Insurance): The components of a mortgage payment, including the loan principal, interest, property taxes, and insurance. Example: The homeowner’s monthly PITI payment was $1,500.
12. PMI (Private Mortgage Insurance): Insurance that protects the lender in case the borrower defaults on a mortgage with a down payment of less than 20%. Example: The borrower had to pay PMI because their down payment was only 10%.
13. REIT (Real Estate Investment Trust): A company that owns, operates, or finances income-generating real estate, allowing investors to buy shares and earn dividends. Example: The investor decided to invest in a REIT to diversify their portfolio.
14. ROI (Return on Investment): The measure of profitability of an investment, calculated by dividing the net profit by the investment cost and expressed as a percentage. Example: The investor achieved an ROI of 12% on their real estate project.
15. Short sale: A sale of a property in which the proceeds fall short of the outstanding mortgage balance, requiring approval from the lender. Example: The homeowner opted for a short sale to avoid foreclosure and minimize their financial losses.
16. Title: The legal document that establishes ownership of a property. Example: The buyer hired a title company to conduct a title search and ensure there were no ownership disputes or liens on the property.
17
. Underwriting: The process of assessing the risk and eligibility of a borrower and property for a mortgage loan. Example: The lender performed a thorough underwriting analysis before approving the borrower’s mortgage application.
18. Zoning: The legal restrictions and regulations that dictate the use and development of land within a specific area. Example: The property was zoned for residential use, prohibiting any commercial activities on the premises.
19. Absorption rate: The rate at which available properties are sold or leased in a specific market over a given period. Example: The high absorption rate indicated a strong demand for rental properties in the city.
20. Bridge loan: A short-term loan that bridges the gap between the purchase of a new property and the sale of an existing property. Example: The buyer used a bridge loan to secure their new home while waiting for their current home to sell.
21. Concession: An incentive or benefit provided by the seller to the buyer during a real estate transaction, such as paying closing costs or offering a price reduction. Example: The seller agreed to cover the buyer’s closing costs as a concession.
22. Depreciation: The decrease in the value of a property over time due to factors such as wear and tear, obsolescence, or market conditions. Example: The investor claimed depreciation expenses on their rental property to offset rental income for tax purposes.
23. Easement: The legal right of one party to use or access a portion of another party’s property for a specific purpose. Example: The property owner granted an easement to the utility company to access the power lines on their land.
24. Flipping: The practice of buying a property, renovating or improving it, and then selling it quickly for a profit. Example: The investor specialized in flipping distressed properties, buying them at a low price, and selling them after renovations for a higher price.
25. Gross rent multiplier (GRM): A ratio used to estimate the value of an income-producing property by dividing the sale price by the gross rental income. Example: The investor used the GRM to compare different properties and identify the best investment opportunity.
26. Homeowners Association (HOA): An organization that manages and governs a residential community or condominium complex, enforcing rules and collecting fees from homeowners. Example: The HOA implemented new landscaping guidelines to maintain the community’s appearance.
27. Infill development: The process of developing vacant or underutilized land within an existing urban area. Example: The city encouraged infill development to revitalize underdeveloped neighborhoods and reduce urban sprawl.
28. Joint tenancy: A form of property ownership in which two or more individuals have equal rights to the property, including the right of survivorship. Example: The couple held the property in joint tenancy, ensuring that if one of them passed away, the other would inherit their share.
29. Landlord: The owner of a rental property who leases it to a tenant in exchange for rent payments. Example: The landlord performed regular maintenance and repairs on the property to ensure tenant satisfaction.
30. Mortgage-backed securities (MBS): Financial instruments that represent ownership in a pool of mortgage loans, allowing investors to earn income from the interest payments made by borrowers. Example: The investor purchased MBS to diversify their investment portfolio.
31. Negative cash flow: When the expenses associated with owning a property exceed the rental income generated, resulting in a financial loss. Example: The investor decided to sell the property because it had been experiencing negative cash flow for several months.
32. Open house: A scheduled period during which a property is available for prospective buyers to visit and inspect without an appointment. Example: The real estate agent held an open house to attract potential buyers and generate interest in the property.
33. Pre-approval: The process
of obtaining a preliminary commitment from a lender for a mortgage loan, based on a borrower’s financial information and creditworthiness. Example: The buyer submitted their financial documents to the lender to obtain pre-approval before starting their home search.
34. Quiet title: A legal action taken to establish clear and undisputed ownership of a property, resolving any competing claims or disputes. Example: The buyer initiated a quiet title lawsuit to remove any clouds on the property’s title.
35. Rental yield: The return on investment generated by a rental property, calculated by dividing the annual rental income by the property’s value or purchase price. Example: The rental yield for the property was 6%, making it an attractive investment for the buyer.
36. Seller’s market: A market condition in which there are more buyers than available properties, giving sellers an advantage in negotiations. Example: In a seller’s market, properties often receive multiple offers and sell quickly at or above the asking price.
37. Turnkey property: A fully renovated or refurbished property that is ready for immediate occupancy or rental without the need for any additional work. Example: The investor purchased a turnkey property to generate rental income right away without the hassle of renovations.
38. Vacancy rate: The percentage of unoccupied rental units in a specific market or property. Example: The property manager worked to minimize the vacancy rate by promptly advertising and filling vacant units.
39. Walkability: A measure of how easily accessible amenities, services, and transportation options are from a particular location, often influencing property values. Example: The neighborhood’s high walkability score contributed to its popularity among homebuyers.
40. 1031 exchange: A tax-deferred exchange that allows an investor to sell a property and reinvest the proceeds into another property of equal or greater value, while deferring capital gains taxes. Example: The investor utilized a 1031 exchange to avoid paying taxes on the sale of their investment property.
41. Adjustable-rate mortgage (ARM): A mortgage loan with an interest rate that adjusts periodically based on market conditions, potentially resulting in fluctuating monthly payments. Example: The borrower chose an ARM to take advantage of the lower initial interest rate.
42. Building code: The set of regulations and standards that dictate the design, construction, and safety requirements for buildings and structures. Example: The builder ensured compliance with local building codes during the construction of the new residential development.
43. Cash-out refinance: The process of refinancing a property and withdrawing equity in the form of cash, often used for home improvements or debt consolidation. Example: The homeowner opted for a cash-out refinance to fund a major renovation project.
44. Deed: A legal document that transfers ownership of a property from one party (grantor) to another (grantee). Example: The seller signed the deed to transfer ownership of the property to the buyer at the closing.
45. Eminent domain: The government’s power to take private property for public use, with fair compensation provided to the property owner. Example: The city exercised eminent domain to acquire the necessary land for a new infrastructure project.
46. Fixer-upper: A property in need of significant repairs or renovations, typically sold at a lower price to account for the required improvements. Example: The buyer purchased a fixer-upper with the intention of renovating it and increasing its value.
47. Green building: The practice of constructing or renovating buildings using environmentally friendly materials and methods, aiming to reduce energy consumption and minimize environmental impact. Example: The developer incorporated solar panels and energy-efficient systems into the green building project.
48. Home inspection: A thorough examination of a property’s condition, conducted by a professional inspector, to identify any issues or defects before completing a purchase. Example: The buyer scheduled a home inspection to ensure there were
no hidden problems with the property.
49. Inflation: An increase in the general price level of goods and services over time, eroding the purchasing power of currency. Example: Inflation can impact the real estate market by increasing construction costs and property values.
50. Listing agent: The real estate agent who represents the seller and assists in marketing and selling the property. Example: The listing agent created an attractive listing with professional photographs and detailed descriptions to attract potential buyers.
51. Mortgage insurance: Insurance that protects the lender in case the borrower defaults on a mortgage loan, typically required for loans with a down payment of less than 20%. Example: The borrower had to pay mortgage insurance premiums along with their monthly mortgage payment.
52. Net lease: A lease agreement in which the tenant is responsible for paying not only rent but also a portion or all of the property’s operating expenses, such as taxes, insurance, and maintenance costs. Example: The commercial tenant signed a net lease, assuming responsibility for all property-related expenses.
53. Option agreement: A contract that gives the buyer the right, but not the obligation, to purchase a property within a specified period at a predetermined price. Example: The buyer secured an option agreement on the land, allowing them time to conduct feasibility studies before committing to the purchase.
54. Pocket listing: A property for sale that is not listed on the public market but is exclusively marketed within a select group of potential buyers or real estate agents. Example: The high-profile celebrity opted for a pocket listing to maintain privacy during the sale of their luxury estate.
55. Principal: The original amount borrowed in a loan, excluding interest and other charges. Example: The buyer made monthly mortgage payments to gradually reduce the principal balance of their loan.
56. Real estate bubble: A rapid and unsustainable increase in property prices, often followed by a sharp decline or market correction. Example: The real estate bubble burst in 2008, leading to a significant drop in property values and a subsequent economic downturn.
57. Seller financing: A financing arrangement in which the seller provides a loan to the buyer to facilitate the purchase of the property, often when traditional financing options are limited. Example: The seller agreed to seller financing, allowing the buyer to make monthly payments directly to them.
58. Title insurance: Insurance that protects the buyer and lender against any defects, liens, or competing claims on the property’s title. Example: The buyer purchased title insurance to ensure a clear and marketable title.
59. Upside potential: The potential for a property or investment to increase in value or generate higher returns in the future. Example: The investor identified the property’s upside potential due to planned infrastructure improvements in the surrounding area.
60. Vacation rental: A property that is rented out to vacationers or short-term visitors for a specified period, typically on a daily or weekly basis. Example: The homeowner listed their beachfront property as a vacation rental during the summer months.
61. Appraisal: The process of determining the value of a property, conducted by a professional appraiser using various factors such as comparable sales, location, condition, and market trends. Example: The lender ordered an appraisal to ensure the property’s value aligned with the loan amount.
62. Certificate of occupancy (CO): A document issued by the local government or building department, indicating that a property meets all applicable building codes and is safe for occupancy. Example: The builder obtained a CO before allowing tenants to move into the newly constructed apartments.
63. Down payment: The initial upfront payment made by the buyer towards the purchase of a property, typically a percentage of the total purchase price. Example: The buyer saved up a 20% down payment to qualify for a conventional mortgage loan.
64. Escrow: The process in which a neutral third party holds
funds, documents, or assets on behalf of the buyer and seller until all conditions of a contract are met. Example: The earnest money deposit was placed in escrow until the transaction reached its closing stage.
65. Gross income: The total income generated by a property before deducting expenses or taxes. Example: The landlord calculated the property’s gross income by summing up all rental payments received during the year.
66. Homeowners insurance: Insurance that provides coverage for the structure of a property and its contents against specified risks, such as fire, theft, or natural disasters. Example: The homeowner paid an annual premium for homeowners insurance to protect their property.
67. Investment property: A property purchased with the primary objective of generating income or appreciation, rather than for personal use. Example: The investor purchased a multi-unit apartment building as an investment property to generate rental income.
68. Mortgage broker: A middleman who connects borrowers with lenders and assists in the mortgage loan application process. Example: The buyer worked with a mortgage broker to find the best loan terms and interest rates for their home purchase.
69. Offer: A formal proposal made by a buyer to purchase a property, including the purchase price and any specific terms or conditions. Example: The seller received multiple offers and carefully reviewed each one before making a decision.
70. Property management: The professional management of real estate properties on behalf of the owner, including tasks such as tenant screening, rent collection, maintenance, and property marketing. Example: The property owner hired a property management company to handle all aspects of renting and maintaining their investment property.
71. Real estate agent: A licensed professional who represents buyers or sellers in real estate transactions, assisting with property search, negotiations, and paperwork. Example: The real estate agent guided the buyer through the entire home-buying process, from property viewings to the final closing.
72. Short sale: A real estate transaction in which the lender agrees to accept a sale price that is less than the outstanding mortgage balance, typically to avoid foreclosure. Example: The homeowner pursued a short sale to minimize the impact of financial distress and negotiate with the lender.
73. Title search: An investigation of public records to verify the ownership history of a property and identify any liens, encumbrances, or legal issues that may affect the title. Example: The title company conducted a thorough title search to ensure a clear and marketable title for the buyer.
74. Upzoning: The process of changing the zoning regulations to allow for more intensive development or higher-density land use in a particular area. Example: The city council approved the upzoning of the neighborhood, allowing for the construction of taller buildings and increased residential capacity.
75. Yield: The return or profit generated by an investment, usually expressed as a percentage of the investment amount. Example: The rental property had a high yield, with rental income exceeding expenses and providing a substantial return on investment.
76. Amortization: The gradual repayment of a loan through regular installments, which include both principal and interest, over a specified period. Example: The borrower made monthly mortgage payments following an amortization schedule to gradually pay off their loan.
77. Buy-and-hold: An investment strategy where an investor purchases a property with the intention of holding it for an extended period, typically to benefit from long-term appreciation or rental income. Example: The investor adopted a buy-and-hold strategy, acquiring rental properties as a long-term investment for passive income.
78. Cap rate: Short for capitalization rate, it is a measure used to estimate the potential return on investment of an income-generating property by dividing the net operating income by the property’s value or purchase price. Example: The investor analyzed the cap rate to assess the profitability of the commercial property before making a purchase decision.
79. Distressed property: A property that is in poor physical condition, facing foreclosure, or being sold under unfavorable circumstances, often at a discounted price. Example: The investor specialized in buying distressed properties, renovating them, and selling them for a profit.
80. Equity: The ownership interest or value that an owner has in a property, calculated by subtracting the outstanding mortgage balance from the property’s market value. Example: The homeowner built equity in their property over time as the property value increased and the mortgage balance decreased.
81. Foreclosure: The legal process by which a lender takes possession of a property from a borrower who has defaulted on their mortgage payments. Example: The bank initiated foreclosure proceedings after the homeowner failed to make several consecutive mortgage payments.
82. Homeowners association fees: Periodic fees paid by homeowners to a homeowners association (HOA) to cover common area maintenance, amenities, and other shared expenses. Example: The homeowner paid monthly HOA fees to fund the maintenance of community facilities and landscaping.
83. Leverage: The use of borrowed funds or debt to finance an investment, potentially amplifying the potential returns or risks. Example: The investor used leverage by taking out a mortgage to purchase a rental property, allowing them to control a larger asset with a smaller initial investment.
84. MLS
(Multiple Listing Service): A database and platform used by real estate agents to share information about available properties for sale or rent. Example: The agent listed the property on the MLS, exposing it to a wide network of other agents and potential buyers.
85. Prepayment penalty: A fee charged by the lender if the borrower pays off the mortgage or a significant portion of it before the agreed-upon term, discouraging early repayment. Example: The borrower reviewed the loan terms carefully to ensure there were no prepayment penalties in case they decided to refinance or sell the property early.
86. Real estate investment trust (REIT): A company that owns, operates, or finances income-generating real estate properties and allows investors to buy shares of the company. Example: The investor purchased REIT shares to diversify their real estate holdings and earn regular dividends.
87. Survey: A detailed measurement and mapping of a property’s boundaries, structures, and features, conducted by a professional surveyor. Example: The buyer ordered a survey to verify the property boundaries and identify any encroachments or discrepancies.
88. Zoning: The division of land into different zones or districts, each with specific regulations and restrictions regarding land use, density, and building requirements. Example: The commercial area was zoned for mixed-use, allowing for a combination of residential and commercial development in the same area.
89. Adjustable-rate mortgage (ARM): A mortgage loan with an interest rate that adjusts periodically based on market conditions, potentially resulting in fluctuating monthly payments. Example: The borrower chose an ARM to take advantage of the lower initial interest rate.
90. Building code: The set of regulations and standards that dictate the design, construction, and safety requirements for buildings and structures. Example: The builder ensured compliance with local building codes during the construction of the new residential development.
91. Cash-out refinance: The process of refinancing a property and withdrawing equity in the form of cash, often used for home improvements or debt consolidation. Example: The homeowner opted for a cash-out refinance to fund a major renovation project.
92. Deed: A legal document that transfers ownership of a property from one party (grantor) to another (grantee). Example: The seller signed the deed to transfer ownership of the property to the buyer at the closing.
93. Eminent domain: The government’s power to take private property for public use, with fair compensation provided to the property owner. Example: The city exercised eminent domain to acquire the necessary land for a new infrastructure project.
94. Fixer-upper: A property in need of significant repairs or renovations, typically sold at a lower price to account for the required improvements. Example: The buyer purchased a fixer-upper with the intention of renovating it and increasing its value.
95. Green building: The practice of constructing or renovating buildings using environmentally friendly materials and methods, aiming to reduce energy consumption and minimize environmental impact. Example: The developer incorporated solar panels and energy-efficient systems into the green building project.
96. Home inspection: A thorough examination of a property’s condition, conducted by a professional inspector, to identify any issues or defects before completing a purchase. Example: The buyer scheduled a home inspection to ensure there were no hidden problems with the property.
97. Inflation: An increase in the general price level of goods and services over time, eroding the purchasing power of currency. Example: Inflation can impact the real estate market by increasing construction costs and property values.
98. Listing agent: The real estate agent who represents the seller and assists in marketing and selling the property. Example: The listing agent created an attractive listing with professional photographs and detailed descriptions to attract potential buyers.
99. Mortgage insurance: Insurance that protects the lender in case the borrower defaults on a mortgage loan, typically required for
loans with a down payment of less than 20%. Example: The borrower had to pay mortgage insurance premiums along with their monthly mortgage payment.
100. Net lease: A lease agreement in which the tenant is responsible for paying not only rent but also a portion or all of the property’s operating expenses, such as taxes, insurance, and maintenance costs. Example: The commercial tenant signed a net lease, assuming responsibility for all property-related expenses.
TOP 50 PROFESSIONS 2024
SIDE HUSTLE
BUSINESS OWNER