Think Realty
Sales and Purchase Agreement – SPA
A legal contract delineating the terms of a transaction and obligating both buyer and seller to close the transaction if those terms are met ...
The United States Department of Agriculture (USDA) defines rural areas as those that are nonmetropolitan and have “open countryside, rural towns (laces with fewer than 2,500 people) and urban areas with populations ranging from 2,500 to 49,999 ...
A tax-favored retirement account that accepts after-tax contributions and provides tax-free compounding of profits and tax-free withdrawals during retirement ...
A contractual agreement that one party will have the first option to meet a predetermined set of conditions in order to conduct a transaction before those terms are offered elsewhere. For example, in a lease-option scenario, the tenant may have right of first refusal if the owner of the property ...
The use of analytics to predict consumer behavior on a micro-market level and optimize product availability and price to maximize revenue growth. In real estate, this involves identifying ways to “beat” market rental rates with unique offerings or to improve vacancy rates by “beating” competition ...
Return on investment (ROI) measures how much you gained or lost on an investment property relative to how much you invested in the property up front. ROI is typically used to compare the efficiency of different investments ...
A type of property that generates the majority of its revenue from the rental of dwelling units. Not to be confused with single-family residential (SFR), although some investors use the terms interchangeably ...
A residential home that is used for the housing and care of elderly residents. The RAL provides room, board, housekeeping, supervision, and personal care and assistance with Activities of Daily Living (ADLs). Additionally, there is the “Golden Girls” model, which provides housing, but does not provide care ...
The act of adapting something that was used for one purpose to serve a different purpose ...
Refinancing involves taking out a new loan on a property. Typically, a refinance involves consolidating debt, obtaining a lower interest rate, or otherwise procuring some advantage over the previous financing terms ...
The action or process of converting waste into reusable materials. These materials may be less expensive or more durable than new materials, but not always ...
A person appointed to take temporary legal possession of a mortgaged property in order to pay expenses, maintain the property and any associated income, and turn accounts over to the court ...
A realtor, as defined by the National Association of Realtors (NAR) is a federally registered collective membership mark which identifies a real estate professional who is a member of the NAR and subscribes to its strict code of ethics. The NAR emphasizes that the term Realtor(R) may only be used ...
When investors pool financial and intellectual resources to invest in properties and real estate projects larger than they could afford or manage on their own, they are practicing real estate syndication. A partnership between two or more investors. In most real estate syndications, the sponsor puts the deal together and ...
Real Estate Secured Promissory Notes
A promissory note, also known as a mortgage note, holds real estate as its collateral. The note, for short, details exactly how, when, and where a borrower will make payments and explains different payment default scenarios and potential outcomes. One of those outcomes if the note is secured by real ...
Any professional offering a service related to real estate or whose business model revolves around any part of the real estate investing process. Real estate professionals include agents, property managers, general contractors, and real estate investors ...
Property that is owned by a lender after a foreclosure ...
A self-directed individual retirement account holding real estate investments. These accounts can hold almost any alternative asset, but investors who focus on real estate often refer to them as real estate IRA’s instead of simply self-directed IRA’s ...
Real Estate Investment Trust – REIT
A REIT is a company that owns, operates, and/or finances some type of income-producing real estate. REITs are available to investors in the form of shares that may be bought, sold, and traded much like stocks and other securities. REITs are designed to be more liquid than physical real estate ...
A unique piece of physical property, both the land and the buildings on it ...
A provision often included in adjustable rate mortgages (ARMs) that limits how much the interest rate can increase over a predetermined period of time. Some ARMs have a lifetime cap as well as a cap for certain periods of adjustment ...
A legal instrument used to transfer interest in a property. A quitclaim deed does not necessarily ensure clear title, since a grantor can sign a quitclaim deed even if they have no interest in the property ...
A legally binding agreement that allows a buyer the option to purchase something at a predetermined price on or before a predetermined time. These options have real value and may be bought and sold independently of the purchase item in most cases unless the option excludes this ...
An agreement between a buyer and a seller of a piece of real estate defining the terms under which the transaction may be completed. In some cases, this agreement may be assigned to another party ...
An individual in charge of regular maintenance of a rental property ...
