Glossary
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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.
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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.
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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.
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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.
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Appraisal
An expert valuation of a house by a qualified appraiser.
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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.
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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.