Category Archive: Real Estate Dictionary

What is a R.E.I.T ?

What is a R.E.I.T ?   A REIT is short for a real estate investment trust.  Basically a REIT is a fractional investment in a large protfolio of real estate.  Think of it as owning a share of stock in a big real estate holding. Setting up a REIT is one of the ways that …

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Understanding Loan-to-Value Ratio (LTV) and Debt Service Coverage Rate (DSCR)

Understanding Loan-to-Value Ratio (LTV) and Debt Service Coverage Rate (DSCR) By [http://ezinearticles.com/?expert=Michael_Anders]Michael Anders What is a loan-to-value ratio (or LTV)? The LTV is very important in determining the amount of capital that can be obtained to finance a given property.  LTV relates the principle portion of a mortgage to the appraised value of a property.  …

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What Are Replacement Reserves?

Replacement reserves is a pile of money a real estate investor sets aside to cover any future replacements for worn out items he or she may incur after the property is purchased   Many investors have gotten themselves in trouble because they didnt have a replacement reserves when a big repair hit.  This can lead to …

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What is an ant?

What is an ant? In real estate, an ant is a person who crawls all over a town looking for deals for an investor.  Savvy investors can use groups of ants to find hidden deals.  Ants are great for finidng FSBO and abandoned houses. In general ants are paid for their services.  Generally they are …

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What are real estate comps?

What are real estate comps? In the world of real estate investing one of the important things that every investor must do is he or she must be able to place a value on a given property.  One of the ways that we do this is through comparable properties or comps, as they are called …

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What Is An Equity Partner?

What Is An Equity Partner, And How Do Real Estate Investors Use Them?   In the world of real estate investing taking on equity partners is a creative finaince technique where the investor leverages OPM other peoples money, by taking on a partner with cash.   The partner is now part of the deal, they are …

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What Is Owner Financing?

What is owner financing?   Owner financing is a refernce to any number of creative financing techniques where the owner of a property agrees to hold some portion of the debt on a property purchase.  There are a variety of terms used to describe differant owner financing methods.  Terms like agreement for deed, land contract, …

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What Is An Affordable Housing Provider?

What is an affordable housing provider? There are two generally accepted definitions of an affordable housing provider.  The first one is more traditional.  In this definition of an affordable housing provider, the provider is an investor who caters to renters who are in need of some sort of financial support from one or more government …

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