Investing in real estate can be exciting, but all those terms can get confusing!
Don't worry, I've got you covered.
Here are 10 essential real estate terms to add to your vocabulary:
Lien: An unpaid debt attached to a property, like back taxes.
Escrow: A neutral third party holding onto funds until the deal closes.
Down payment: The upfront cash you contribute to buying a property.
Appraisal: An official estimate of a property's market value.
Closing costs: Fees associated with buying a property (think taxes, inspections).
Capitalisation rate (Cap Rate): Measures the return on investment of a property.
Real Estate Investment Trust (REIT): A company that owns and operates income-producing real estate.
Due Diligence: Thorough investigation of a property before buying.
Market Value: The estimated price a property would sell for in a fair market.
Comparable Market Analysis (CMA): A comparison of similar properties to determine market value.
Now it's your turn! What questions do you have about real estate investing? Let's chat in the comments!
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