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...
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Purchase and Sale Agreement
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.
Property Manager
An individual in charge of regular maintenance of a rental property.
Prohibited Transaction
Certain transactions within a retirement plan that violates Internal Revenue Code 4975. Prohibited transactions include, but not limited to, living or utilizing the property owned by your IRA, using...
Private Mortgage Insurance (PMI)
Private mortgage insurance is designed to mitigate a lender’s risk on a loan. Borrowers with lower credit scores, lower down payments, and other potentially problematic issues with their loan could...
Private Lender
A non-institutional lending entity that may be an individual or a company. Private lenders may also be called “non-bank lenders” and tend to lend based not only on conventional creditworthiness but...
Primary Mortgage Market
The market where borrowers and mortgage originators (usually banks, mortgage brokers, or credit unions) come together to negotiate terms for loans and conduct mortgage transactions.
Personality Profile Assessment
A short, standardized, objective assessment designed to help employers, managers, and team captains assess whether current and potential team members have the aptitude and affinity for specific...
Performing Note
When a borrower is making payments on time, the note on a loan is considered to be performing. A loan on which the borrower is making payments on time and in full.
Passive Investing
Passive real estate investors power real estate investing transactions by providing funding for deals and allowing active investors to manage the actual investing process, be it leasing a property,...
