real estate investment<\/a> by pooling money from a large group of investors.<\/p>\n\n\n\nDeed<\/strong>: A legal document that transfers property ownership from one party to another.<\/p>\n\n\n\nDepreciation:<\/strong> The decrease in the value of an asset over time and a commonly used tax advantage of real estate<\/p>\n\n\n\nDue diligence<\/strong>: The process of investigating a property before purchase to assess its potential profitability and\/or risks. Due diligence may include ordering a professional inspection, researching the property’s history, and\/or speaking to neighbors.<\/p>\n\n\n\nEarnest money<\/strong>: A deposit made by a buyer to show that they are serious about purchasing a property. The seller typically forfeits the earnest money if the deal falls through.<\/p>\n\n\n\nEscrow<\/strong>: An account held by a third party during a real estate transaction. This account holds funds (such as the down payment) until they are needed for closing.<\/p>\n\n\n\nForeclosure<\/strong>: The legal process through which a borrower defaults on their mortgage loan and loses their home. This can happen if the borrower fails to make payments or otherwise breaches the terms of their loan agreement.<\/p>\n\n\n\nHome Equity<\/strong>: The portion of a property’s value the owner has paid for in full. Home equity can be used as collateral for a loan or line of credit.<\/p>\n\n\n\nHome Inspection<\/strong>: A professional assessment of a property to identify any potential defects or problems. inspections are typically conducted before purchase and may be required by the lender.<\/p>\n\n\n\nInspection Period<\/strong>: The time after an offer is accepted but before the deal is finalized, during which the buyer can have the property inspected for any defects.<\/p>\n\n\n\nLiens<\/strong>: A claim on a property by someone who is owed money. For example, the municipality may place a lien on your home if you fail to pay your property taxes.<\/p>\n\n\n\nLock in Period<\/strong>: The period during which an interest rate is fixed. For example, you may lock in a low-interest rate for 30 days while shopping for a mortgage loan.<\/p>\n\n\n\nMLS (Multiple Listing Service)<\/strong>: A database of properties for sale, typically used by real estate agents and brokers. The MLS can be a great resource for buyers looking for their dream home.<\/p>\n\n\n\nREALTOR<\/strong>: A licensed professional to help people buy and sell the property. REALTORS are members of the National Association of REALTORS (NAR), which sets standards for ethical conduct in the industry.<\/p>\n\n\n\nRemedy Period<\/strong>: When a buyer can back out of a real estate deal if they find any material defects with the property. This period is typically included in the inspection contingency.<\/p>\n\n\n\nShort Sale<\/strong>: A sale in which the proceeds are not enough to pay off the existing mortgage on the property, and the lender agrees on a reduced payoff amount. Short sales often occur when borrowers are delinquent on their mortgage but not yet foreclosed.<\/p>\n\n\n\nWholesaling<\/strong>: Finding a property, negotiating a purchase price, and then selling the contract to another buyer before closing.<\/p>\n\n\n\nZoning<\/strong>: The regulations that dictate how the land can be used. Zoning laws can impact everything from the type of building constructed on land to the number of parking spaces required.<\/p>\n\n\n\nNow that you know some common real estate vocabulary words, you’ll be better equipped to navigate the industry and make informed decisions when investing in property.<\/p>\n","protected":false},"excerpt":{"rendered":"
Real Estate Vocabulary: Definitions for the Everyday Investor If you’re new to real estate, it’s important to understand…<\/p>\n","protected":false},"author":1,"featured_media":1614,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[44,54,26],"tags":[],"taxonomy_info":{"category":[{"value":44,"label":"Beginner Investors"},{"value":54,"label":"Definitions"},{"value":26,"label":"Tools"}]},"featured_image_src_large":["https:\/\/prorealestateinvesting.com\/wp-content\/uploads\/2022\/08\/Real-estate-Vocabulary-1024x576.png",1024,576,true],"author_info":{"display_name":"Matt Cochrell","author_link":"https:\/\/prorealestateinvesting.com\/author\/matt\/"},"comment_info":0,"category_info":[{"term_id":44,"name":"Beginner Investors","slug":"beginner-investors","term_group":0,"term_taxonomy_id":44,"taxonomy":"category","description":"","parent":0,"count":8,"filter":"raw","cat_ID":44,"category_count":8,"category_description":"","cat_name":"Beginner Investors","category_nicename":"beginner-investors","category_parent":0},{"term_id":54,"name":"Definitions","slug":"definitions","term_group":0,"term_taxonomy_id":54,"taxonomy":"category","description":"","parent":26,"count":1,"filter":"raw","cat_ID":54,"category_count":1,"category_description":"","cat_name":"Definitions","category_nicename":"definitions","category_parent":26},{"term_id":26,"name":"Tools","slug":"tools","term_group":0,"term_taxonomy_id":26,"taxonomy":"category","description":"","parent":0,"count":4,"filter":"raw","cat_ID":26,"category_count":4,"category_description":"","cat_name":"Tools","category_nicename":"tools","category_parent":0}],"tag_info":false,"uagb_featured_image_src":{"full":["https:\/\/prorealestateinvesting.com\/wp-content\/uploads\/2022\/08\/Real-estate-Vocabulary.png",2240,1260,false],"thumbnail":["https:\/\/prorealestateinvesting.com\/wp-content\/uploads\/2022\/08\/Real-estate-Vocabulary-150x150.png",150,150,true],"medium":["https:\/\/prorealestateinvesting.com\/wp-content\/uploads\/2022\/08\/Real-estate-Vocabulary-300x169.png",300,169,true],"medium_large":["https:\/\/prorealestateinvesting.com\/wp-content\/uploads\/2022\/08\/Real-estate-Vocabulary-768x432.png",768,432,true],"large":["https:\/\/prorealestateinvesting.com\/wp-content\/uploads\/2022\/08\/Real-estate-Vocabulary-1024x576.png",1024,576,true],"1536x1536":["https:\/\/prorealestateinvesting.com\/wp-content\/uploads\/2022\/08\/Real-estate-Vocabulary-1536x864.png",1536,864,true],"2048x2048":["https:\/\/prorealestateinvesting.com\/wp-content\/uploads\/2022\/08\/Real-estate-Vocabulary-2048x1152.png",2048,1152,true]},"uagb_author_info":{"display_name":"Matt Cochrell","author_link":"https:\/\/prorealestateinvesting.com\/author\/matt\/"},"uagb_comment_info":0,"uagb_excerpt":"Real Estate Vocabulary: Definitions for the Everyday Investor If you’re new to real estate, it’s important to understand...","_links":{"self":[{"href":"https:\/\/prorealestateinvesting.com\/wp-json\/wp\/v2\/posts\/1493"}],"collection":[{"href":"https:\/\/prorealestateinvesting.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prorealestateinvesting.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prorealestateinvesting.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prorealestateinvesting.com\/wp-json\/wp\/v2\/comments?post=1493"}],"version-history":[{"count":4,"href":"https:\/\/prorealestateinvesting.com\/wp-json\/wp\/v2\/posts\/1493\/revisions"}],"predecessor-version":[{"id":2110,"href":"https:\/\/prorealestateinvesting.com\/wp-json\/wp\/v2\/posts\/1493\/revisions\/2110"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prorealestateinvesting.com\/wp-json\/wp\/v2\/media\/1614"}],"wp:attachment":[{"href":"https:\/\/prorealestateinvesting.com\/wp-json\/wp\/v2\/media?parent=1493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prorealestateinvesting.com\/wp-json\/wp\/v2\/categories?post=1493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prorealestateinvesting.com\/wp-json\/wp\/v2\/tags?post=1493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}