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MAKING SENSE OF REAL ESTATE INVESTMENT TERMS

Let’s discuss the topic of real estate investment terms.  Like any other industry, the real estate investing world has its own unique terminology and lingo.  As a newbie real estate investor, it won’t take long before you feel like you’ve entered an entirely different language.  However, fear not. In this post, I’ve included some of the commonly used real estate investment terms that aren’t...

WHAT IS THE 70% RULE IN REAL ESTATE & SHOULD IT BE FOLLOWED?

As a real estate investor, you’ll hear about different rules and formulas designed to mitigate risk.  One such rule is the 70% rule.  What is the 70% rule in real estate?  The 70% rule simply states that you shouldn’t pay more than 70% of a property’s after-repair-value (ARV) minus estimated repair costs (ERC).   This can probably be better explained by creating an example.  Let’s imagine you...

What is a MLS listing number?

What is a MLS listing number?  Also known as a listing ID, a MLS listing number is a number assigned to a real estate listing in MLS.   While in MLS, you can easily search for a property by typing in the address.  However, what if the property you’re searching for has multiple records in MLS such as the situation shown below?   Why would a property have more than one listing in MLS?   Well...

WHAT IS OWNER FINANCING & HOW DOES OWNER FINANCING WORK?

What is owner financing?  Also known as seller financing, owner financing is essentially where the seller acts as the lender and loans money to the buyer in a real estate transaction.   How Does Owner Financing Work? Now that you’ve got an answer to “what is owner financing?”, let’s talk about how owner financing works.  With owner financing, the buyer and seller both sign...

WHAT does COMPARATIVE MARKET ANALYSIS (CMA) MEAN IN REAL ESTATE?

In real estate, what does a  comparative market analysis (CMA) mean?   Regardless if you’re just starting out in real estate or if you’re a seasoned real estate investor, understanding what a comparative market analysis is – and how they are put together – is critical to your success.   The purpose of this post is to define what a CMA is, how it’s put together, and how you use it to...

WHAT IS A MULTI-FAMILY HOME?

What is a multi-family home?  A multi-family home is a kind of real estate where you have multiple individual housing units within a single building or multiple buildings within a single complex.   The different types of multi-family homes The different types of multi-family homes include: condominiums, townhomes, apartments, co-ops, duplexes, triplexes, and fourplexes.  Let’s examine each one in...

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