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
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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
Multiple Listing Service (MLS)
Multiple Listing Services are used by real estate brokers, agents, and other licensed professionals to cooperate on the purchase, sale, listing, and appraisal of homes. These services are often referred to as “The MLS,” but multiple listing services are often regional and do not include all properties for sale in ...
Reminder notices sent to tenants via multiple communication avenues. For example, you might send a letter in the mail, an email, and a text message to a tenant to remind them that rent is due and make payment as easy as possible ...
An agreement between a tenant and property owner that permits the tenant to rent from the owner one month at a time rather than via a more extended lease agreement. Often month-to-month tenancies are more expensive since the landlord does not have the same stability that comes with an extended ...
The amount that a property may be sold for in the marketplace. Market value may be derived by comparing a property to other similar properties that have sold recently or by attempting to determine the price at which a property would sell immediately. While both may be referred to as ...
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 ...
