Glossary

• Absentee Owner

  A property owner who does not live in the area in which a property is located. Also a good source for potential leads.

• Affordable Market Value (AMV)

  The Federal Deposit Insurance Corporation (FDIC) defines affordable market value as the amount a buyer or tenant can pay to purchase or rent a property based on their income, not necessarily the appraised value of the property.

• After Repair Value (ARV)

  The value of a property after repairs are made. ARV usually refers to the value of the property after it has been brought to a level comparable with other properties for sale in the area, but can simply indicate the value of a property after planned repairs are made. Investors must be certain to verify all parties mean the same thing when using the term.

• Annual Percentage Rate (APR)

  The annual rate charged on borrowed money or earned through an investment. APR is usually expressed as a percentage representing the actual yearly cost of the funds over the term of a loan.

• Appraisal

  An expert valuation of a house by a qualified appraiser.

• Assessed Value

  The value of a residence, usually for tax purposes. This value should involve comparable home sales in the area and property inspections, and is used to calculate property taxes. These are not always up-to-date.

• Asset Protection

  A collection of laws, strategies, and practices that make it difficult for one party to abuse the legal system to take things from another party.