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Flashcards in RE Specializations Deck (127)
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1

Specializations can come through areas like:

Type of clients: Buyers, sellers, investors
Property type: Residential, commercial, land
Service provided: Property management, leasing, short sales

2

Lease:

legal contract containing the terms under which one party rents or leases a property to another for a specified period of time, usually with agreed upon regular periodic payments

3

Residential Rental Locator:

residential rental locator works as an independent contractor to match landlords and tenants, and must be licensed by the Texas Real Estate Commission (TREC); also known as a leasing agent or leasing consultant

4

Property Manager:

real estate license holder who oversees the day-to-day operation of a property for its owner

5

property manager’s primary or overriding responsibility is to

protect the property owner’s investment and maximize the owner’s return on that investment.

6

Resort Homes:

home in which the owner usually does not live on a full-time basis, and the length of ownership as compared to a residential home is usually much shorter

7

Investment Property:

property purchased primarily or exclusively for investment purpose rather than as a place to live

8

the primary question that most raw land buyers need to answer is whether or not the land is

buildable or developable.

9

contract farming," which is an agreement between a

farmer and a buyer, where the buyer is a corporation that dictates what and how much of what will be grown or raised.

10

REO (Real Estate Owned):

property that is owned by a lender as result of a foreclosure and a failure to find a third-party buyer at a foreclosure auction

11

investors and first-time home buyers are especially good prospects for

REO purchases

12

Short Sale:

sale of a property, with permission of the lender, for less than the balance of the mortgage loan; normally occurs when the borrower is no longer able to make their mortgage payments and hopes to avoid foreclosure proceedings

13

Reserve Auction:

An auction in which a seller reserves the right to accept or reject the highest bid within a predetermined time

14

Absolute Auction:

Also known as a no-reserve auction, it is an auction in which there is no reserve or restriction on price

15

Minimum Bid Auction:

An auction in which a minimum acceptable sale price (reserve), disclosed or not, is set

16

In Texas, even though auctioneers are unquestionably involved in the sale of real estate, according to Section §101.005(4) of the Texas Real Estate License Act, they are exempt from needing a real estate license as long as:

They are licensed as auctioneers under Chapter 1802 of the Texas Occupations Code
They do not perform any other act of a broker or license holder

17

Acceleration clause:

A clause that allows the lender to require full payment of the loan under certain conditions

18

multi-family residential properties with 5 or more dwellings are considered

commercial properties because of the profit-making intent of the property.

19

Investment:

implementation of money to realize profit or gain, usually with an understanding that some degree of risk may be involved

20

Appreciation:

increase in value of a property

21

Cash flow:

Refers to the cash that an investment generates after accounting for the operating expenses, debt service, and taxes associated with the enterprise

22

Rate:

A percentage ratio of the amount of profit or loss to the original cost of investment

23

Return:

The numeric amount of profit

24

Rate of return:

The percentage gain (loss) on the cost of investment over a period of time

25

Gross Rent Multiplier (GRM):

The ratio of the price of investment property to its annual rental income before considering expenses like taxes and insurance, etc.

26

Liquidity:

ease and speed with which an asset can be bought or sold without significantly diminishing the asset's value

27

Time Value of Money:

concept that states today's money is worth more now than the same amount will be in the future because of its present earning capacity

28

Leverage:

The use of debt as a tool to stretch an available pool of money farther by using it to mortgage many properties rather than purchase one or a few outright

29

Loan to Value Ratio:

The ratio between a loan amount and the value of the asset purchased by the loan

30

Operating statement:

Used to determine the cash flow potential of a property by providing a clear picture of the rental income stream (cash inflow) and the various expenditures (cash outflow), concluding with a bottom-line, after-tax cash flow