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
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