• Absentee Landlord

    A landlord who owns property in an area in which they do not live. They usually live out-of-state, and are a good source of potential leads for off-market properties since they may be “burned out” on the maintenance associated with long-range landlording.

  • Absentee Owner

    A property owner who does not live in the area in which a property is located. Also a good source for potential leads.

  • Abstract Of Title

    A summary that gives the details around the title to a piece of property, including the title deeds and documents proving an owner’s right to dispose of the land and encumbrances or liens associated with the property. This is not the same as chain of title, which is simply the sequence of historical transfers of title to a property.

  • Accelerated Amortization

    Accelerated amortization involves making extra payments on a mortgage specifically designated toward the principal in order to pay the note off early.

  • Accessory Dwelling Unit (ADU)

    A separate, usually smaller dwelling on the same grounds as a larger residential property. In some cases, this dwelling might be attached to the garage, as in the case of a garage apartment, or have a separate foundation, such as a tiny house in the backyard. These may add or detract value from a property depending on the state of the dwelling and the market in which it is located.

  • Affordable Market Value (AMV)

    The Federal Deposit Insurance Corporation (FDIC) defines affordable market value as the amount a buyer or tenant can pay to purchase or rent a property based on their income, not necessarily the appraised value of the property.

  • After Repair Value (ARV)

    The value of a property after repairs are made. ARV usually refers to the value of the property after it has been brought to a level comparable with other properties for sale in the area, but it simply indicates the value of a property after planned repairs are made. Investors must be certain to verify all parties mean the same thing when using the term.

  • Alligator Property

    A rental property scenario in which the mortgage payments, property tax costs, insurance, and maintenance costs on the rental property are costlier than the amount of rental income it is generating.

  • Alternative Investments

    A term used to indicate investments considered to be “nontraditional,” meaning outside stocks, bonds, and mutual funds. Real estate, mortgage notes, private loans, and precious metals are all “alternative investments.”

  • Amenity

    A feature or facility associated with a building or place. Usually used in a positive context. Gym facilties, parking, swimming pools, and fireplaces are examples of amenities.

  • Annual Percentage Rate (APR)

    The annual rate charged on borrowed money or earned through an investment. APR is usually expressed as a percentage representing the actual yearly cost of the funds over the term of a loan.

  • Annuity

    A fixed sum paid each year for a predetermined term. Annuity is often interpreted to mean a life term, but it can be another period of time during which an investment yields a series of annual sums.

  • Application Fee

    A price attached to the application process. Application fees serve several purposes, including covering the cost of evaluating a rental applicant’s viability for tenancy and setting an initial bar to entry.

  • Appraisal

    An expert valuation of a house by a qualified appraiser.

  • Appraisal Management Company – AMC

    An independent entity through which mortgage lenders order real estate appraisal services. Lenders use an AMC during the mortgage application process when they are considering extending a loan for the purchase of a piece of property. Federal guidelines require lenders and appraisers to maintain a firewall between them. AMCs serve as that firewall by maintaining a pool of qualified appraisers rather than enabling a relationship between a specific lender and a specific appraiser.

  • Appraised Value

    The value of a property based on the opinion of a licensed appraiser.

  • Appraiser

    A real estate professional who has the knowledge and expertise necessary to estimate the value of a piece of property.

  • Appreciation

    An increase in the value of a piece of property.

  • Arbitration

    Arbitration is a formal legal process used to resolve a dispute before parties reach the point of litigation. Arbitration may be used to address repair and inspection issues, costs for repairs and maintenance, or earnest-money disputes. Arbitration clauses in contracts state up front how arbitration will be handled if there is a dispute.

  • Assessed Value

    The value of a residence, usually for tax purposes. This value should involve comparable home sales in the area and a property inspections, and is used to calculate property taxes. These are not always up-to-date.

  • Assessor

    An assessor evaluates the quality of an asset. In real estate, this individual provides values estimates on land and buildings, often for tax or insurance purposes.

  • Asset

    Any owned property having value

  • Asset Protection

    A collection of laws, strategies, and practices that make it difficult for one party to abuse the legal system to take things from another party.

  • Assignor

    A person, company, or business entity who transfers their rights to another person, company, or entity. In real estate, an asignor may transfer their right to purchase a property at a certain price to another person, the assignee, in exchange for a fee during the wholesaling process.