Part Two: The ABCs of REI.

There's a lot of information involved with real estate investment. Here's part one of our glossary that covers common terms used in REI.

REI Glossary: Common Real Estate Investment Terms.

Part Two of Two. Your A-Z guide for the most common real estate terms.

P – Z

Don’t forget about A-N, read part one in last week’s blog post!

Pre-approval – When a lender evaluates a potential borrower to determine whether or not the borrower qualifies for the lender’s financing. Pre-approval also determines the maximum amount the lender would be willing to provide and is completed through a look into the borrower’s income, expense, credit report and score.

Qualification – When a borrower meets the lender’s guidelines based on debt, income, and creditworthiness.

ROI – The percentage of invested money that is returned to an investor after associated costs are deducted.

Single Family Rental – A Single-Family rental unit is a free standing residence that is a detached dwelling, and is not an apartment, condo, duplex, or a townhouse.

Turnkey Investment – When an investor purchases a property, rehabilitates it, then has the property managed by a third party.

Unsecured Loan – Financing that is provided to a borrower based on the creditworthiness of the borrower, instead of collateral (use of property). Also called a signature loan or a personal loan.

Vested Interest – A personal stake or involvement in a risk or state of affairs for financial gain.

Wholesaler – The person or broker who puts property, often distressed property, under contract and assigns or resells it to another investor.

Yield – A measurement of future income on the investment.

Zero-lot-line – A piece of residential real estate which the structure comes up to, or very near, the property line.

Even more information for your real estate investment.

There’s a lot of information that comes along with REI, and our blog aims to help you stay up-to-date with thorough articles that cover everything to do with real estate investment.  If you’re looking to invest, or if you’re curious about the benefits of real estate, subscribe to receive everything you need to know right in your inbox!

In the meantime, visit Sherman Bridge University for free, exclusive investment tools and tech. We have designed cutting-edge online toolkits and calculators to help you make well-informed investment decisions, and in just 30-seconds  you can see a preview of your personal rate!

Leave a Reply

Your email address will not be published. Required fields are marked *