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Every business has its jargon and residential real estate is no exception. Mark Nash, author of 1001 Tips for Buying and Selling a Home, shares commonly used terms with home buyers and sellers.

1031 Exchange or Starker Exchange: The deferred exchange of goods that qualifies for tax purposes as a tax-deferred exchange.

1099: The income statement reported to the IRS for an independent contractor.

A/I: Pending contract with supply and inspection contingencies.

Accompanied Shows: Those shows where the listing agent must accompany an agent and their clients while viewing an ad.

Appendix: An addition to; a document.

Variable Rate Mortgage (ARM): A type of home loan whose interest rate is linked to an economic index, which fluctuates with the market. Typical ARM periods are one, three, five, and seven years.

Agent: The licensed real estate seller or broker who represents buyers or sellers.

Annual Percentage Rate (APR): The total costs (interest rate, closing costs, fees, etc.) that go into a borrower’s loan, expressed as a percentage of the interest rate. Total costs are amortized over the term of the loan.

Application Fee – Fees that mortgage companies charge buyers at the time of a written loan application; for example, fees for running borrower credit reports, property appraisal fees, and lender-specific fees.

Appointments: Those hours or periods during which an agent shows properties to clients.

Estimate: An opinion document of the value of the property at a specific time.

Appraised Price (AP): The price the third-party relocation company offers (in most contracts) to the seller for their property. Usually the average of two or more independent ratings.

“As Is”: A contract or offer clause that states that the seller will not repair or correct any problem with the property. It is also used in lists and marketing materials.

Assumable mortgage: one in which the buyer agrees to fulfill the obligations of the existing loan agreement that the seller has entered into with the lender. By assuming a mortgage, the buyer becomes personally liable for payment of principal and interest. The original mortgagee must receive a written release of liability when the buyer assumes the original mortgage.

Return to Market (BOM): When a property or listing is put back on the market after being recently taken off the market.

Backup Agent – A licensed agent who works with clients when their agent is unavailable.

Balloon mortgage: A type of mortgage that is usually paid off in a short time, but is amortized over a longer period. The borrower usually pays a combination of principal and interest. At the end of the term of the loan, the entire outstanding balance must be paid.

Relief offer: when an offer is accepted subject to the fall or cancellation of a first accepted offer on a property.

Bill of Sale: Transfers title to personal property in a single transaction.

Board of REALTORS® (Local): An association of REALTORS® in a specific geographic area.

Broker: A state-licensed person who acts as an agent for the seller or buyer.

Broker of record: the person registered with the competent authority in your state as the managing broker of a specific real estate sales office.

Broker’s Market Analysis (BMA): The real estate broker’s opinion of the expected final net selling price, determined after the property is acquired by the third-party company.

Broker Tour: A predefined time and day where real estate agents can view listings from multiple brokers in the market.

Buyer: The buyer of real estate.

Buyer’s Agency: A real estate broker hired by the buyer who owes a fiduciary duty to the buyer.

Buyer’s Agent: The agent who shows the buyer’s property, negotiates the contract or offer for the buyer, and works with the buyer to complete the transaction.

Maintenance costs: costs incurred to maintain a property (taxes, interest, insurance, utilities, etc.).

Closing: The end of a transaction process where the deed is delivered, the documents are signed and the funds are distributed.

CLUE (Comprehensive Loss Underwriting Exchange): The national insurance industry database that assigns individuals a risk score. CLUE also has an electronic file of a property insurance history.

Let’s get real about something – and eliminate the LIES you’ve been told about real estate investing!

What I am going to reveal to you are some basics
truths about real estate investing – truths that can
totally affect the real estate investments you have
now – and I certainly intend to modify the way
invest real estate in the future.

Let’s get straight to the point and to the heart of reality.
real estate investment problem

You’ve been programmed all your life to become
what you are today – from school, friends, family
and, yes, your parents.

Recent studies show that you are who you are now,
more of what you learned before the age of 8 than in
everything you have learned since then.

Now this may surprise you, but it is true that this
what you learned from an early age affects the way you
make real estate investments today, and the type
of success in investing in real estate that you will have
Forward!

Yeah, that’s a bit shocking.

You see, if you grew up in an environment where
you heard things like

“We can’t afford it”, “Make sure
you have saved enough and have the money to buy it”
(i.e. never use credit), or many other phrases
that now you hear yourself say (you know what
I’m talking about – those times when you catch yourself
“become their parents”), is due to their
early programming (from 0 to 8 years old) and what
they were told about money, success and life in general.

It’s checking your current income – and your
success – or lack thereof…

The things they said to you so soon, most
influential age, now they are infiltrating and affecting
how successful you are in business, in life and yes,
in your real estate investment.

THERE IS GOOD NEWS

The best thing about this fact, as horrible as
it seems – is that you can change the ‘programming’ –
you have the power to do it!

You can reprogram yourself as you wish –
have what you want – do what you want.

All it takes is to simply “reinstall” the correct type of
thinking.

And it’s easier than you think!

One of the best ways to do this is to get an audio CD
set of someone who likes to listen – someone
who thinks positive and talks about the life you want
live. Many home courses are available (yes,
including mine) that are designed to inspire and
motivate you, while teaching you the methods and
the secrets of real estate investing

Buy one, listen to it, over and over, until
hear you talk that way, too.

You see, we’re all just creatures of habit and
the environment – if we let garbage get into our heads,
all we will say is that the garbage comes out.

If you only hear the bad things in life (like TV
news, most “talk radio” shows, “real life” TV shows
shows that end in fights, you know them.
and even violent films where the language is
nothing you would expect to hear from yours
lips.), that’s exactly what you’ll end up sounding like
I like!

It’s true – “you are what you eat” – and it matters
as much for what you put in your ears as for what it does
for what you put in your mouth!

If you spend your time with “bar people”,
talk and act like them. not that there is something
wrong with it, as long as you made an awareness
I thought that was what you wanted, but I think you would.
be much more successful in real estate investing if
you were listening to a successful person teach
you about real estate investing!

Let us now come to the fact of the various
methods and concepts you learned on Real
Property investment.

You can call yourself a “property investment expert”,
but if you have to get up every morning and ask yourself
where is your next check coming from, you are not
make real estate investments, you are
Employed in a real estate investment JOB!

Yes, that’s a strong statement.

You see, I want you to be “real” with yourself and
Admit it: investing in real estate is when you
put money into a real estate investment, then
withdraw money – ‘real estate investment’
accurate.

However, it seems that most people I know want
attend my real estate training or buy my property
real estate courses that have to do with ‘No Money
Real Estate Investment Down’ (NMD).

No down payment and other “creative” real estate
investment methods

For many years, investors have seen the traditional
real estate investment methods described in part 1
of this article as much less than desirable!

They started looking at house prices and
find methods to further align the price
with making more money faster.

These smart investors have developed ways to get loans
in properties that allowed them to earn money
every time they buy a real estate investment (cash
at closing) and reduce your payments to accumulate
your cash flow (“creative” investment).

They have even developed methods to determine a
The seller’s motivation to sell – and bought the
discounted property.

These creative investors have also found that some sellers
they couldn’t (for some reason) sell the
property at a reduced price, however, still
necessary to dispose of the property, since it is not
know how to manage it as an owner, or do
money from her – not that it couldn’t be done, they
he just lacked knowing how to do it.

The seller has simply never learned to take advantage of a
property investment.

These investors figured out how to make money
such properties, and he did.

They bought the property at a discount and
made money on the spread by retailing it
prices and/or conditions (without a doubt one of my favorites
real estate investment methods).

Buy all real estate investments at the discount price
o Discount Terms.

Several years ago (in fact, it really took off in the
1980), Real Estate Investment Experts started
see the potential to earn money by bringing
this valuable knowledge to the public in the form of
homeschooling, seminars and Boot Camps.

They discovered that it would not create competition for
themselves, like many people, despite the fact that
buy real estate courses and attend seminars
and Boot Camps, you won’t actually take the
information and use it to make hundreds and
even thousands of dollars possible for anyone
serious about real estate investing.

These real estate investment experts (being
nicknamed “guru”) found that this side of the business
was lucrative, often earning more income than
teaching about real estate investing than the real
own real estate investments.

It is important to understand that these properties
Investment gurus quickly realized that they could only
teaching others what to do, not being responsible for the
the success of others.

Provide information to those who choose not to
using it is very similar to the old adage “You can
Take a horse to water, but you can’t make it drink.”

Yes, these real estate investing gurus got rich
to sell this information, but their theories,
principles and techniques taught to thousands of
others (those who act on what they learn)
how to achieve your dreams using their proven
real estate investment methods.

Home-study classes and seminars, to get started
camps and individual training, these methods
proved not only interesting for
millions of people, but capable of bringing enormous
wealth to those who act on what is taught –
those who go on and really do real estate
the investments themselves.

Knowledge changes things…

This knowledge of real estate with no down payment
investment techniques known by thousands of
Vendors have brought about changes in the industry.

By taking the seller into the realm of knowledge
investment in real estate, sellers now know a lot of
the methods taught by the gurus.

It is both a blessing and a curse.

For the talented investor, these experts
people are more likely to work to create a WIN-WIN
situation.

Investors who avoid gimmicks and stick to the basics
real estate investment techniques and conditions that
proven over and over again,
have tried these powerful real estate investments
the strategies even work with these savvy sellers.

Oh yeah, a lot of that real estate investment
the techniques work today, as they did for many
years. So much so that it’s almost possible to say
they have become principles; things that work, more
again and again, in the same way come what may –
like gravity

With the endless changes in our real estate markets, real estate professionals are beginning to pay attention to the sound of new sources of commission income. Some real estate agents avoided or shunned terms such as “cap rate” and “cash yield”. Terms that only “smart” and “numbers-oriented” people use to determine whether a real estate purchase is a “good deal” or not. Most real estate bros have attended real estate school because they are excited and passionate about the promise of selling real estate and making a fantastic living. That said, “times are changing”. Even if you live in a hot market where residential real estate sells out in 2-3 days, there’s an old-school approach to real estate that’s growing faster by the day…Residential real estate investors.

This savvy group of real estate investors is bringing the real estate industry and the world of real estate investing into a new era! We no longer accept the crazy volatility of the Dow Jones and NASDAQ families. Unwilling to accept the investment practices of their ancestors, these investors don’t care about returns above the traditional 5-6% on their Roth or IRA accounts. These investors are bold and often aggressive. Today’s real estate investors are looking for quick fixes and change, high appreciation and strong monthly cash flow. Gaining a foothold by investing in their own hometown is just the beginning, as serious investors are looking to outlets outside their own backyard to other more promising and profitable regions. You can say well, how does this elderly person see his investment opportunities? For starters, the age of these poachers ranges from 28 to 68 years old. From the “Rich Dad Poor Dad” book series to the magical presence of Trump in “The Apprentice”, young real estate entrepreneurs are realizing their dreams at the rate of 3 to 5 acquisitions per year! Has that caught your attention now? The typical investor has a good to excellent credit rating. Excellent cash reserves or hidden resources from partners with cash, and the willingness to close the deal at almost any cost. The best kept secret of all is that these investing beasts travel in packs. The place where they see each other is very close behind. In other words, they know the people you need to know to further grow your investor database. If the real estate professional does a good job, satisfied clients will likely recommend many of their fellow investors. Not only investor clients, but also your day-to-day real estate business. Admit it, if you can show your clients how savvy you are with their biggest personal real estate purchase, don’t you think they’ll outperform their “trusted real estate advisors” when it comes to buying a home, from a basic condo or beach? ? home?

What if you haven’t focused on the real estate investment industry? And you think that all sounds pretty good, let’s give it a try. The first question to ask yourself is who your clients have worked with or explored their real estate investment options in the past 3-4 months. Statistically, 6 out of 10 clients have considered investing in real estate or have already started before their real estate agent has time to blink. Has that caught your attention now? How about the fact that in less than a year I increased my annual commissions by 30% simply by positioning myself within my core clientele? All I did was let them know that I was ready, willing and able to start helping them with their “real estate investing” needs. What I learned in the first year is that if I could create an environment for my clients to learn about real estate investing, they would appreciate it in many ways… More importantly again, they would call me before drafting a contract and I would make sure I was involved in every contract I wanted to make a real estate purchase. In a short time, 30% rose to 45% and more. Even if you’re not interested in expanding your customer base, at least consider protecting the territory you’ve invested in for so long and the financial resources to maintain their loyalty.

demanding consumers

“Internet buyers tend to be better informed about market conditions and better prepared to act on the home they want when they start working with a real estate agent. Fortunately for real estate agents, these changes don’t necessarily make badly, as long as they can adjust to the new relationship and realizing that new-style buyers value speed and efficiency over advice when looking for a home.”

– E-marketer, internet home buyers changing house rules

Thanks to the Internet and other technological innovations, more real estate information is available for free than ever before. As a result, consumers are demanding new options, improved services, faster transactions and lower prices. According to a recent NAR survey, the number of sellers who said they did not want to pay a sales commission rose from 46% in 2003 to 61% in 2004. In 2004, 23% of Florida home sellers chose to sell independently without an agent, up from 14% in 2003 and nearly double the national average of 14%, according to Planet Realtor.

And web-connected consumers demand a high digital IQ when working with real estate professionals. Besides being well versed in its specific technology of the industry, it will be hoped that the professional inmobiliarios using portable computers, mobile telephones, digital cameras, personal digital assistants and global positioning systems for maintenance and maintenance of the compradors and vendedores of internet.

Low pressure

“If consumers are going to do their own shopping online from home, they expect to save money, just as they would if they were using the drive-thru lane. That’s why they’re sensitive to online discount brokers and associated startups.” they promote lower commissions if only consumers use their agents. These business models promote the idea among consumers that they should pay less money in commissions.

Realty Times columnist Blanche Evans

Traditional real estate commissions, typically around six percent of a home’s selling price, are facing downward pressure from consumers and competition. Some consumers say traditional real estate commissions don’t reflect:

– House prices today. Years ago, when median-priced homes were selling for $25,000, real estate commissions were typically 5%, or $1,250. Today, with median home prices in South Florida hovering around $300,000, the cost of a 6% full-service real estate commission becomes $18,000. Some brokers even charge additional fees to cover administrative costs. When you consider that the average homeowner today sells a home every five to seven years, real estate commissions can have a huge impact on your personal savings and net worth.

– Property of the owner. When selling properties, most owners calculate the cost of sale as part of the sale price, although commissions are paid from the owner’s equity. (Equity is the difference between the value of your property and the amount of mortgages owed.) Let’s take this example: you decide to sell a property for $250,000 of which you own 10% of the equity, or $25,000. After paying a six percent commission on $15,000, you are left with $10,000 before applicable closing costs. In this example, the commission of $15,000 is 6% of the sale price, but 60% of the principal of $25,000.

– Services provided. Under the current commission structure, selling a $100,000 home at six percent typically costs $6,000, while selling a $500,000 home costs $30,000. Does selling the most expensive house really take five times the effort? Your cost is the same whether the agent spends one hour or 100 hours marketing your home. This is one of the reasons many real estate consumers find fee-for-service real estate so appealing.
Development of alternatives

“Consumers want what they want, when they want it, and they’ll turn to the most cost-effective source to get it. Why? Because our ‘one size fits all’ approach to working with sellers and buyers is antiquated and won’t work.allow consumers.