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.
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