Glossary

Fair Market Value
The highest possible selling price based on comparable sells.
After Repair Value
The market value a property can achieve once all repairs are completed.
Purchase Discount
Means the discounted price you will offer for the property before expenses. This field can be modified to 65%-85% if deemed necessary by investor depending on the deal.
Private Money Borrowed
This money could come from another investor, partner, etc.
Household Income Per Month
This information will be required from potential tenants to determine if the rental property or leased option property is a good fit for them.
Projected Holding
Period Is the period you expect to pay for all property expenses before rented or sold.
Kick Back
Is any shared profit with any private investor other than the investors involved in structuring or accomplishing the completion of the deal.
Option Money
Is the amount a potential buyer is willing to put down to have the exclusive right to buy the property on a specified and previously agreed date.
Rent Credit
Is a previously agreed monthly rental allowance based on agreement fulfillment. It is used as an incentive for potential buyer to buy property on specified date.
Contingency
Is a reserved amount saved up for unforeseeable expenses such as, construction cost or holding cost.
(HML)
Hard Money Lender
(ROI)
Return On Investment
(DSR)
Debt Service Ratio
(DS)
Debt Service
(MAO)
Max allowable offer

$$$ To Your Success in Real Estate Investments $$$

How To Build Wealth