Pro REI Jargon

Question 1

Blast

Answer 1

Email blast, or email sent out to a ton of different investors or buyers

Convo: “Has this been blasted yet?”
“When is this going to be blasted?”

Create urgency. “I wanted you to see this before we blast it out.”

Question 2

List

Answer 2

Buyer’s list. List of investors that you sell properties to.

Question 3

EMD, EM, Earnest, Escrow

Answer 3

Earnest Money Deposit

Convo: “Did you get EMD?” Essentially asking, “Is this in?”

Happens over the phone

Question 4

Hard, Non-refundable

Answer 4

After inspection period, our money is non-refundable.

“Our earnest money is hard.”

Question 5

HML, HM

Answer 5

Hard Money Lender

Over email or text, not over the phone

Question 6

Open Escrow

Answer 6

It’s not, “started, beginning, etc.” It’s “opening escrow.”

“Did you get escrow open? Yep, I got escrow open.”

Question 7

Cashier’s Check (Certified Funds)

Answer 7

It’s as good as cash. When you take a cashier’s check, it will clear immediately.

You want a wire, or cashier’s check, not a personal check to be used.

Question 8

Post, Post-Possession

Answer 8

When the seller sells you the house, but remains in the house for a certain amount of time after close.
Example: “There is a 30 day post possession on the house. Do you still want to buy it?”

Not desirable because seller might decide that they want to stay

Question 9

Clear Title

Answer 9

Owner owns it free and clear of any mortgage companies. Don’t have any liens on the home.

Question 10

Into it For

Answer 10

What you bought it for

Ex) “What’re you into this for?”

Deflect: “On all of our deals, its the same process. We try to buy in bulk. So on all of our deals, its whatever we paid for marketing plus $4,000 is our fee. We are just looking to do volume.”

Question 11

Cost

Answer 11

Acquisition price
Same as “Into it for.”

Question 12

Net

Answer 12

Net to seller. If they say they want to “net 150k” and they’re selling it for 150k that means you’re paying for all fees and costs

Question 13

COE

Answer 13

Close of Escrow

Question 14

Active

Answer 14

You can purchase it

Question 15

Pending

Answer 15

Someone else is under contract but its not been purchased

Question 16

UCB

Answer 16

Under contract accepting backups

Question 17

Bid

Answer 17

Something you get from a general contractor

Question 18

Hard Bid

Answer 18

Guaranteed by the contractor. Generally want to go off of hard bids.

Question 19

Re-Trade

Answer 19

Once you have the property under contract, you go back and try to bring them slightly down on price

Investor to investor term. Internal term

Question 20

Reduced/ Renegotiated/ New Price

Answer 20

The price has been lowered

Question 21

Unit Mix

Answer 21

For multi family properties. How many beds and baths in each unit?

“What’s the unit mix?”

Question 22

Individually Metered

Answer 22

Each unit individually pays their electricity

Question 23

Chisel

Answer 23

Same as a re-trade

“I’m going to go out and try to chisel off a few bucks.”

Question 24

Back available

Answer 24

If you sold the contract, and it falls through, you can blast it out again and say “Property back available.”

Question 25

ARV (After Repair Value)

Answer 25

Once the property is completely fixed up, and completely beautiful, what it would be worth at that point

Question 26

WP (Wholesale Price)

Answer 26

What you're selling the property for Most don't use this

Question 27

Bidding War

Answer 27

"We got into a bidding war."

Question 28

Master metered

Answer 28

All the properties are on one meter. Landlord typically pays the bill and divides it amongst meter users. Much less desirable

Question 29

Off Market

Answer 29

One that is not listed on the MLS

Question 30

Lock it up

Answer 30

Putting a property under contract

Question 31

Locked up

Answer 31

Have the property under contract

Question 32

Tied down

Answer 32

Same thing as locked up

Question 33

Slide it into the closing docs

Answer 33

You can have them sign additional documents when they sign closing docs. Provide it to the escrow officer

Question 34

Marketing Agreement

Answer 34

Same thing as an option to sell. You are given the option to purchase with the whole idea you are going to sell the property. Once you sell the property, you exercise your interest

Question 35

Option to sell

Answer 35

We don't want to blast out options that are not exclusive Get an exclusive option

Question 36

Exclusive option

Answer 36

You have the exclusive rights to sell the property

Question 37

Access

Answer 37

What a buyer will call asking for Essentially saying, "How do I get into the house?"

Question 38

Supra

Answer 38

A type of lock box

Question 39

MLS Box

Answer 39

Same thing as Supra

Question 40

Mechanical

Answer 40

Is this a mechanical lock box?

Question 41

Vesting

Answer 41

The name or entity they want to purchase the property in

Question 42

True square footage

Answer 42

There is an addition to a house that hasn't been placed on tax records

Question 43

Subs (sub it out)

Answer 43

Short for subcontractor

Question 44

Sqftage Per

Answer 44

Very important to list the square footage and where we got it from Accessor site Appraisal Owner

Question 45

Available

Answer 45

People are asking if this property in your wholesale inventory is still for sell

Question 46

Possession

Answer 46

When do we get possession of the property? "What's possession like?" "Vacant at close" or "Vacant at COE" or "Vacant now"

Question 47

Vacant?

Answer 47

No one is living in the home

Question 48

Over wholesale (Price)

Answer 48

"I'll offer you $7,000 over wholesale." I know you've already sold it and I'll give you more if you swing it to me

Question 49

Walk

Answer 49

Walking away from the deal. Not gonna do it

Question 50

Scope

Answer 50

Scope of work. Deals with general contractor. "I like the scope on this one." Meaning, I like what the property looks like.

Question 51

Close on ____

Answer 51

What day is the close? We will close on this specific date

Question 52

First leg

Answer 52

A to B contract

Question 53

Second leg

Answer 53

B to C contract

Question 54

Pull the trigger

Answer 54

Buy the house

Question 55

Rent ready

Answer 55

In the condition right now when you can go in and rent it. A little dirty

Question 56

Turnkey

Answer 56

A little nicer than rent ready If you say, "turn key rental" it typically means its a sucky deal."

Question 57

Title?

Answer 57

When a buyer asks "Title?" it means what escrow or title company are you using on that particular deal?

Question 58

Comps

Answer 58

Comparable properties

Question 59

No Meat on the bone

Answer 59

What a buyer will say when there isn't enough profit on the deal

Question 60

Too skinny

Answer 60

Same as meat on the bone

Question 61

Inventory

Answer 61

All of the wholesale properties you currently have available

Question 62

Deposit

Answer 62

Earnest money

Question 63

Repair Estimate

Answer 63

General estimate of bid for repairs

Question 64

Cabs

Answer 64

Cabinets

Question 65

Proforma

Answer 65

Multi-family How much money you'll make on it over time if you buy and hold it

Question 66

Steal

Answer 66

Smoking deal

Question 67

Buying Deep

Answer 67

Bought at a very low price

Question 68

Nice Catch

Answer 68

Got a good deal

Question 69

Hoarder House

Answer 69

Stinky and gross with tons of crap

Question 70

Squatter

Answer 70

Someone who is hanging around the house without paying rent

Question 71

Foundational Issues

Answer 71

Typically very expensive and unsatisfying to investors

Question 72

Foundational Cracks

Answer 72

Same as foundational issues

Question 73

Addition Play

Answer 73

The property could have good value if an addition was added. Typically means the property is squall

Question 74

Reposition Play

Answer 74

For multi-family housing. Typically rundown properties that can be fixed up and you can charge a greater amount for.

Question 75

Sticks up

Answer 75

Starting from the dirt. Basically building a home from scratch

Question 76

Build Play

Answer 76

Same thing as sticks up. Basically nothing on the property but if you build something there is potential to make money

Question 77

Dated

Answer 77

An old home

Question 78

Time Capsule

Answer 78

An old home. Old design and old carpet, paint job, etc. A lot needs to be replaced

Question 79

Needs Everything

Answer 79

Needs to be totally redone. Needs plumbing, electricity, air conditioning, etc.

Question 80

Fire Burn

Answer 80

A home has suffered fire damage

Question 81

Tear Down

Answer 81

Essentially nothing of value left. It would need to be torn down and rebuilt Price you're selling it for should be cheaper than the lot itself due to demo costs

Question 82

Scrape and Build

Answer 82

Same as tear down. Need to scrape it all and rebuild

Question 83

Clean

Answer 83

A little nicer than rent ready

Question 84

3/2, 2/1, 3/2/2g

Answer 84

of bedrooms, bathrooms, and garages g = garage in home c = carport u = uncovered (driveway is all)

Question 85

Net Net

Answer 85

What a fix and flipper says when after all expenses they want to profit net x% "I'm looking to net net 15%"

Question 86

Daisy chain

Answer 86

When there are multiple people in the process. People will ask, "Do you have this locked up with the seller directly, or are you daisy chaining this?"