Knowledgebase
All of Think Realty's extensive content archive is at your fingertips. Filter by media type and keyword to hone in on exactly what you need.
Knowledgebase
All of Think Realty's extensive content archive is at your fingertips. Filter by media type and keyword to hone in on exactly what you need.
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 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, renovating it, or selling it ...
The amount of work that each dollar you invest “costs” you a property. For example, a typical vacation rental has a high PPD because it requires a great deal of maintenance. Corporate housing rentals tend to have lower PPD because the tenants take good care of the properties in most ...
A property occupied by the owner of the property. Owner-occupied houses are primary residences in most cases, although you may hear some investors refer to vacation homes in this way if the vacation property is not leveraged for any other income-generating purposes ...
A property representing a potential deal for an investor located without the property being formally listed for sale. Off-market deals may include pocket listings, which are not listed on the MLS, as well as leads generated by mailings and other forms of motivated-seller solicitation ...
In real estate, the term note is shorthand for mortgage note, and refers to the promissory note secured by a specific mortgage loan with a piece of property as collateral ...
When a borrower falls behind on payments on a loan, the note is considered to be non-performing. A loan on which the borrower has stopped making payments. These note may also be called distressed notes ...
Net operating income (NOI) is the annual income generated by a rental property after subtracting all expenses from operations. Note: NOI does not factor in your financing costs. The cash flow left when you subtract all reasonable and necessary operating expenses from your property’s revenue, excluding principal and interest on ...
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 ...
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 ...
The strategy of investing in properties that house two or more households. Multifamily, also known as multi-family, may include duplexes, triplexes, quadplexes, etc. as well as larger developments such as apartment buildings and condominium buildings. Multifamily investment strategies often mimic single-family strategies at scale. These properties may be flipped, held, ...
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 ...
The strategy of investing in properties that house two or more households. Multi-family, also known as multifamily, may include duplexes, triplexes, quadplexes, etc. as well as larger developments such as apartment buildings and condominium buildings. Multi-family investment strategies often mimic single-family strategies at scale. These properties may be flipped, held, ...
A lender whose business includes making mortgage loans ...
Mortgage Interest Deduction (MID)
This IRS policy allows homeowners who meet certain requirements to deduct the cost of the interest on their mortgage loans from their taxable income. This can lower the amount of taxes an individual owes on their income and, indirectly, make owning a home more affordable since the home loan diminishes ...
An insurance policy designed to protect lenders from losses due to default on a mortgage loan. Borrowers who put less than 20% down on a property are more likely to have to obtain mortgage insurance, which can be public or private. Mortgage insurance requirements often lapse when a property reaches ...
An intermediary party who brokers mortgage loans on behalf of individuals and businesses. Usually a mortgage broker is paid when the loan closes, and the lender or the borrower may be responsible for that fee ...
A legal agreement between a lender and a homebuyer wherein the lender loans money for the purchase of the property and the property serves as collateral until the debt is paid ...
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 minimum amount that an IRA account holder must withdraw each year. Generally, these distributions are required starting at age 70 1/2. Note: ROTH IRA’s do not require these withdrawals until after the death of the owner ...
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 ...
A financial term used mainly by lenders to express the ratio of a loan to the value of the asset purchased using the loaned money or to the value of the asset serving as collateral on the loan. A borrower taking out a $65,000 loan to purchase a $100,000 property ...
An agreement between a lender and a delinquent borrower to either bring a loan back on track or resolve the delinquency in some other way. Workouts often include extensions of the payback period to lower monthly payments and other adjustments to the loan terms ...
The process of creating a new loan, from application to evaluation to disbursal of funds ...
A debt. In real estate, if a property has a lien against it, that property is serving as collateral for the debt in some form or fashion ...
