Learning the Lingo - The Language of Real Estate Series by Indiana-Joe

Real estate investors sometimes use the language of the business. Often, it is very important to know how to use the lingo! This makes you sound like a savvy investor, whether you are already a seasoned investor or a beginner, it is critical to learn, know and speak the language!

So, lets take a look at the following real estate lingo term:

Real Estate Lingo: # 1
The Lingo: ARV
Defined: After Repaired Value

The ARV, also called the after repaired value, is a very critical number to calculate when determing the potential value of a specific property. A property could have a certain value in its current as-is condition. However, when you do repairs and make the property into turn key condition, the value should increase.

A realtor can assist you by running comps to determine value. Comps are also known as comparable sales of like kind properties in the same area as the property you are working on. You can also find properties that have recently sold on www.realtor.com, www.zillow.com, www.trulia.com, www.totalviewrealestate.com or even the Prop Trend Software if you have this through Deans Success Academy.

It is very important to understand ARV because it helps you determine what to offer on a property to make it a great deal whether you do the project yourself or wholesale it to another real estate investor.

We hope you enjoy the series as you use the language of the business.

As you speak the language you will become a player rather than a pretender in this business. This series will focus on those terms, words, acronyms, etc that will help make you that savvy sounding real estate investor. I hope you enjoy the series as you use the language of the business.

Remember every day you need to say and repeat...THIS IS MY BUSINESS! Do or learn at least one thing each and every day to build a better business!

Carpe Diem! - Stacey

Believe and Achieve! - Joe

What a great way to understand what ARV is! I think the best is yet to come, if we all stay tuned & bookmark this thread. This site is the best place to come to for answers to rei questions & networking.

A big thank you to Joe & Staci Jurek! Keep up the great work & being the awesome examples that you are.

What a great post!

We are glad you enjoyed post #1 on ARv and be sure to bookmark this thread because there is so much more real estate lingo to follow. We appreciate the feedback. Good luck with your future deals. Believe and Achieve! - Joe

Thanks for the feedback. We are glad you enjoyed the post. Be sure to come back regularly as we are sharing more real estate lingo terms. Good luck with your future deals. Believe and Achieve! - Joe

Real estate investors sometimes use the language of the business. Often, it is very important to know how to use the lingo! This makes you sound like a savvy investor, whether you are already a seasoned investor or a beginner, it is critical to learn, know and speak the language!

So, lets take a look at the following real estate lingo term:

Real Estate Lingo: # 2
The Lingo: REO
Defined: Real Estate Owned (by a bank)

When a bank forecloses on a property it is called by the bank a REO, for Real Estate Owned or even an OREO, not not that tasty little cookie, but it means other real estate owned. Thus, when you ask a realtor to send you a list of REOs it really means bank owned properties.

You sound very savvy asking for REOs and the more savvy you sound to a Realtor the less questions they will probably ask you. So when a Realtor asks what type of properties you are looking for, you can state you like REOs.

Often terms can mean the same thing such as a highway, expressway, freeway or a tollway. They all basically mean the same type of road.

Let us take a closer look at these terms. A REO, OREO, Bank Owned or Bank Foreclosure all mean basically the same thing. HOWEVER, a pre-foreclosure or short sale is not a Bank Owned REO property. Pre means BEFORE thus short sales and pre-foreclosures are PRE bank owned. .

We hope you enjoy the series as you use the language of the business.

As you speak the language you will become a player rather than a pretender in this business. This series will focus on those terms, words, acronyms, etc that will help make you that savvy sounding real estate investor. I hope you enjoy the series as you use the language of the business.

Remember every day you need to say and repeat...THIS IS MY BUSINESS! Do or learn at least one thing each and every day to build a better business!
Carpe Diem! - Stacey

Each day do one thing to get you closer to your dreams because if you do today what others are not willing to do, then tomorrow you can do those things that others are only dreaming about doing!
Believe and Achieve! - Joe

Very good idea for a thread.

Karen

We are glad you like the thread. There is more to come so be sure to check back often. Believe and Achieve! - Joe

Real estate investors sometimes use the language of the business. Often, it is very important to know how to use the lingo! This makes you sound like a savvy investor, whether you are already a seasoned investor or a beginner, it is critical to learn, know and speak the language!

So, let us take a look at the following real estate lingo term:

Real Estate Lingo: # 3
The Lingo: Fannie
Defined: Fannie Mae Property

The Federal National Mortgage Association, FNMA, also known as Fannie Mae, was founded in 1938.

As defined by Wikipedia, Fannie Mae is a government-sponsored enterprise (GSE), though it has been a publicly traded company since 1968. The corporation's purpose is to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities (MBS), allowing lenders to reinvest their assets into more lending and in effect increasing the number of lenders in the mortgage market by reducing the reliance on locally-based savings and loan associations.

We hope you enjoy the series as you use the language of the business.

As you speak the language you will become a player rather than a pretender in this business. This series will focus on those terms, words, acronyms, etc that will help make you that savvy sounding real estate investor. I hope you enjoy the series as you use the language of the business.

Remember every day you need to say and repeat...THIS IS MY BUSINESS! Do or learn at least one thing each and every day to build a better business!
Carpe Diem! - Stacey

Each day do one thing to get you closer to your dreams because if you do today what others are not willing to do, then tomorrow you can do those things that others are only dreaming about doing!
Believe and Achieve! - Joe

Real estate investors sometimes use the language of the business. Often, it is very important to know how to use the lingo! This makes you sound like a savvy investor, whether you are already a seasoned investor or a beginner, it is critical to learn, know and speak the language!

So, let us take a look at the following real estate lingo term:

Real Estate Lingo: # 4
The Lingo: Freddie
Defined: Freddie Mac Property

You sound very savvy asking for REOs and the more savvy you sound to a Realtor the less questions they will probably ask you. So when a Realtor asks what type of properties you are looking for, you can state you like Fannie, Freddies and REOs.

As defined in Wikipedia - The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, is a public government-sponsored enterprise (GSE), headquartered in the Tyson's Corner CDP in unincorporated Fairfax County, Virginia.

The FHLMC was created in 1970 to expand the secondary market for mortgages in the US. Along with other GSEs, Freddie Mac buys mortgages on the secondary market, pools them, and sells them as a mortgage-backed security to investors on the open market. This secondary mortgage market increases the supply of money available for mortgage lending and increases the money available for new home purchases.

We hope you enjoy the series as you use the language of the business.

As you speak the language you will become a player rather than a pretender in this business. This series will focus on those terms, words, acronyms, etc that will help make you that savvy sounding real estate investor. I hope you enjoy the series as you use the language of the business.

Remember every day you need to say and repeat...THIS IS MY BUSINESS! Do or learn at least one thing each and every day to build a better business!
Carpe Diem! - Stacey

Each day do one thing to get you closer to your dreams because if you do today what others are not willing to do, then tomorrow you can do those things that others are only dreaming about doing!
Believe and Achieve! - Joe

Thank you Joe and Stacey. What a great idea. It seems like every industry or company has it's own jargon. I'm thinking of Starbucks and it's use of jargon. Instead of just calling their cup sizes small, medium and large, they use some version of large for every size cup. Because real estate is a fairly complex subject with issues in law, lifestyle, community and even politics, I think this is a great idea in order to make it a lot less complex, cumbersome and scary. Thank you.

Be your very best always-Judy Williamson

What you focus on is where your energy goes-Kristin

With gratitude,
Patrick

Thanks for the post and excellent points. When we were new we felt lost because we did not know some of the real estate lingo. As we picked up on the lingo we felt better and sounded a little more experienced. We are glad the posts are helping others. Believe and Achieve! - Joe and Stacey

Real estate investors sometimes use the language of the business. Often, it is very important to know how to use the lingo! This makes you sound like a savvy investor, whether you are already a seasoned investor or a beginner, it is critical to learn, know and speak the language!

So, let us take a look at the following real estate lingo term:

Real Estate Lingo: # 5
The Lingo: HUD
Defined: U.S. Department of Housing and Urban Development Property

Per the HUD website....HUDHOMESTORE.COM is the listing site for HUD real estate owned (REO) single-family properties. This new site provides the public, brokers, potential owner-occupants, state and local governments and nonprofit organizations a centralized location to search the inventory of HUD properties for sale. In addition, registered real estate brokers and other organizations can place bids on behalf of their clients to purchase a HUD property. HUD Home Store also includes many informative user-friendly features providing advice and guidance for consumers on the home buying process.

We hope you enjoy the series as you use the language of the business.

As you speak the language you will become a player rather than a pretender in this business. This series will focus on those terms, words, acronyms, etc that will help make you that savvy sounding real estate investor. I hope you enjoy the series as you use the language of the business.

Remember every day you need to say and repeat...THIS IS MY BUSINESS! Do or learn at least one thing each and every day to build a better business!
Carpe Diem! - Stacey

Each day do one thing to get you closer to your dreams because if you do today what others are not willing to do, then tomorrow you can do those things that others are only dreaming about doing!
Believe and Achieve! - Joe

I think this thread will be very helpful for new investors! I remember a blog where Dean said that we should talk the rei lingo to learn rei! So true!!!

Thanks for dropping by and the positive feedback. We appreciate it. As they say in real estate and business you have to walk the walk and talk the talk and learn the lingo! Have a great weekend! Believe and Achieve! - Joe and Stacey

Real estate investors sometimes use the language of the business. Often, it is very important to know how to use the lingo! This makes you sound like a savvy investor, whether you are already a seasoned investor or a beginner, it is critical to learn, know and speak the language!

So, let us take a look at the following real estate lingo term:

Real Estate Lingo: # 6
The Lingo: VA
Defined: U.S. Department of Veterans Affairs / Veterans Administration
Website: http://www.va.gov/
Website - VA Homes for Sale: http://listings.vrmco.com/

The VA also have homes that are foreclosed on. You can find these homes with the link above. So, when you are searching for bank owned homes ,the list continues: REOs, Fannie, Freddie, HUD and VA. These entities can become motivated just like any other seller. Speak with your realtor and learn how you can make offers on these types of homes.

We hope you enjoy the series as you use the language of the business.

As you speak the language you will become a player rather than a pretender in this business. This series will focus on those terms, words, acronyms, etc that will help make you that savvy sounding real estate investor. I hope you enjoy the series as you use the language of the business.

Remember every day you need to say and repeat...THIS IS MY BUSINESS! Do or learn at least one thing each and every day to build a better business!

Carpe Diem! - Stacey

Each day do one thing to get you closer to your dreams because if you do today what others are not willing to do, then tomorrow you can do those things that others are only dreaming about doing!

Believe and Achieve! - Joe