Operations
Your operations define your long-term success in real estate investing. Fine-tune your process with: Asset Management | Asset Protection | Deal Analysis | Fundamentals | Growth | Lead Generation | Risk Management
Back To: All Topics
Operations
Your operations define your long-term success in real estate investing. Fine-tune your process with: Asset Management | Asset Protection | Deal Analysis | Fundamentals | Growth | Lead Generation | Risk Management
Back To: All Topics
The agreement between the owner of a property and a tenant (lessee) that defines how the property will be used by the tenant, for what period of time, and how the owner will be paid for that use. The lease also details the property owner’s obligations to the tenant and ...
An individual who owns a rental property. Sometimes the term landlord is used to indicate a rental owner who actively manages their rental property, but the term includes both active and passive rental investors ...
An agreement between two or more parties whereby one party (the trustee) agrees to hold ownership of a piece of real estate for the benefit of another party (the beneficiary) ...
A calculated value that shows where home prices should be according to local income. Income price metrics are used to help determine whether a market is over- or underpriced, and are based on data from the FHFA Home Price Index and the Bureau of Economic Analysis. This metric was developed ...
Also sometimes referred to as horizontal improvements. Includes zoning changes, mapping, clearing ground, cutting roads, installing utilities, and paving roads, sidewalks, and gutters ...
An investment “strategy” that relies more on an investor hoping there will be profits rather than strong numerical indications a deal will succeed ...
The act of improving a property’s appeal to buyers using art, accessories, lighting, greenery, carpet, furniture, and other home décor items to create an attractive first impression of the home ...
Your Development Is a Process, Not a Destination
Real estate investing is a complex and multifaceted field that requires a high level of knowledge and skill to be successful. Although some individuals may be able to navigate the market and find profitable deals through trial and error, most real estate investors aspiring to any reasonable level of success ...
Also called eco-roofs and rooftop gardens. A green, growing vegetative layer of grasses, shrubs, plants, and/or trees. Green roofs may reduce rooftop surface temperatures in addition to improving storm-water quality and management ...
A home remodeling professional who manages and executes larger remodeling projects. General contractors (GCs) may work in commercial or residential construction and manage new construction as well as remodeling, renovations, and rehabs ...
Freedom of Information Act (FOIA)
A piece of legislation that grants public access to documents or other data in possession of a government agency or public authority. Real estate investors can leverage FOIA to get information on foreclosure properties ...
You can fill out a FOIA (Freedom of Information Act) form for any agency record. There is no universal FOIA form, but most agencies and public authorities have their own form and their own department to service FOIA requests ...
An estimate of the market value of the property ...
Your exit strategy is the part of the deal where you cash out of the investment. Technically, buying and holding a property as a cash-flowing rental property is not an exit strategy, but a cash-flow strategy. However, as with an actual exit, you must determine how long it will be ...
An agreement between a listing broker and a seller permitting the broker to represent the seller and the seller to also represent themselves. If the seller is able to make the sale without the assistance of the broker, then no commission is paid ...
When an impartial third party holds something of value (in real estate, usually earnest money) during the progress of a transaction. If a home is “in escrow,” that means that the third party is holding the earnest money while the contract is negotiated and the deal is closed. Lenders may ...
Money paid to confirm a contract. If you back out of a contract on a property, you will likely lose your earnest money ...
Loss of value. In real estate, depreciation can be a negative or a positive, since it may be associated with tax deductions in some cases ...
The branch of law dealing with asset protection ...
An agreement between a buyer and seller that the transaction (in real estate, usually the purchase of a piece of property) if certain conditions are met ...
Comparative Market Analysis (CMA)
Evaluation of how properties in an area have sold conducted for the purpose of making predictions about how a specific property might sell in the future. CMAs use comparable properties (comps) in the local area to make predictions about price, time on market, and other strategic decisions when listing a ...
A color palette is the color scheme that you use in the home. It can change from room to room or flow throughout the house. Most designers recommend color palettes that vary, but do not clash ...
The annual return an investor makes on a purchase of real estate in relation to the down payment (cash) only ...
A property that is generating regular income at time of purchase ...
Use this calculator to quickly compare and screen multiple rental properties in a given market. The math: (Property Fair Market Value / Annual Gross Rental Income) = GROSS RENT MULTIPLIER Calculating the Gross Rent Multiplier (GRM) is a quick way to compare multiple rental properties' return by evaluating the number ...
