Basic Real Estate Terms Every Investor Should Know
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Transcript of Basic Real Estate Terms Every Investor Should Know
The APR is the yearly interest accrued on your
total loan that you're responsible for paying
each year.
Amenities are the aspects of a property that
are in addition to the bare bones structure. They include walk-in closets, storage space, stone countertops and
more.
The final step in a real estate transaction when the title transfers from the seller to the buyer
and the seller gets paid.
These are all of the costs associated with
closing that cover various brokerage and escrow fees that the
buyer is responsible for paying.
This is something offered by the borrow in exchange for a loan so that, in the event that
the borrow forgoes payment, the lender can
seize the collateral.
This is the summation of all of the expenses that go into the construction
of a structure and include things like the cost of
labor and the cost of the materials.
The opposite of appreciation, this is
when something decreases in value. In real estate, this can
happen due to unfavorable location or wear and tear on the
property.
When something is in escrow, it's being held by
a third party for a particular means, usually
until the recipient completes a certain
action.
Equity is the amount of your property that you
actually own. If you have a house worth
$100k and your mortgage on it is for $60k, then you have
$40k in equity in your home.