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Real Estate Investing Glossary

Real Estate Investing Glossary we created because real estate investors use professional jargon that maybe unknown to the public. We created this glossary page to give the following information:

  • Hash Tags
  • Definitions
  • Standardization
  • Links for more information.
  • Help for new Investors and the General Public.

Rather than offer the definition every time we use a term, we will refer to this page link. This is a work in progress since we can’t think of all the terms until it becomes top of mind.

 

 

Real Estate Investing Glossary

Hash Tag Definition Meaning
#ARV After Repair Value This is the value of a retail property after it being repaired and bought up to code. Investors use this value to help calculate their purchase price.
#birddog Bird Dog A person who helps real estate investors find deals based on the investor’s parameters. The Bird Dog is paid an agreed percentage by the real estate investor.
#BPO Broker’s Price Opinion A bank calls up a licensed real estate broker to go look at a property and give their opinion as to the value of a property under negotiation in writing.
#CLUE Comprehensive Loss Underwriting Exchange A CLUE® report is a seller’s Disclosure Report about insurance losses at the specified address for the past five years.
#dirtattorney Real Estate Attorney or Lawyer A slang expression for an attorney or lawyer who specializes in real estate law. Real Estate Investors use this term often.
#DIY Do It Yourself Do rehab work by yourself.
#DIP Distressed Investment Property Property has a problem that causes the property to be sold below value.
#EIN Employer Identification Number Also known as a Federal Tax Identification Number. The United States Government uses this number to identify a business entity. Banks need this number to open a business or merchant account.
#FMR Fair Market Rent Landlords or real estate investors can calculate “Fair Market Rent” of an asset using HUD’s Section 8 data.
#FNMA Federal National Mortgage Association or Fannie Mae The biggest mortgage holder in the United States is the U.S. Government. Fannie Mae activities include securitizing mortgages loan made by lenders into mortgage-backed securities MBS or Fannie Mae MBS. Mortgages that go into default and foreclosed are sold off by Fannie MAE.
#FPHA Florida’s Public Housing Authorities Florida’s offices that administer low-income housing programs, e.g., Section Eight, issued by the city, county, state or federal governments.
#FSBO For Sale By Owner Property owner places their asset up “For Sale” without the benefit of a third-party service.
#4PI 4 Point Inspection If a property is more than 30 years old, an insurance adjuster must do a 4 Point Inspection. The adjuster makes sure the Roof, A/C & Heating HVAC, Electrical and Plumbing systems are up to the current municipal code. The results of the 4 point inspection determines whether the property will be insured and refinanced.
#funding Funding Your Deal A real estate investor has identified a deal and needs money to buy and execute repairs. Depending on the deal determines what type of funding they will need.
#hardmoney Hard Money A hard money loan is financing which a borrower receives funds secured by the value of a real estate asset. Interest rates are typically higher due to risk. Length of the loan is typically one year.
#HHA Hialeah or Homestead Housing Authority, Miami-Dade, Florida Hialeah Housing Authority or Homestead Housing Authority low-income housing offices.
#HEAP Home Energy Assistance Program Miami-Dade Florida energy assistance program.
#HCV Housing Choice Voucher HCV The Housing Choice Voucher HCV allows low-income families to rent housing in the private market via federal funds provided by the U.S. Department of Housing and Urban Development HUD. Through the qualification process, a specified amount of most rent allowed to be paid and placed on the HCV. The Public Housing Authority PHA pays a portion of eligible families’ rent each month directly to the Landlord, Property Owner or Manager. Participating families can use their vouchers to rent a house or apartment from private Property Owners throughout PHA’s domain.
#HQS Housing Quality Standards An inspection checklist list of items that a certified HUD inspector uses to inspect a property being inserted in the Section 8 program.
#HUD Housing and Urban Development This is the Federal Government’s Department in charge of low-income housing and rental programs.
#IRS Internal Revenue Service Each Year many auctions are held by the IRS in U.S. and Puerto Rico to sell properties that the IRS has confiscated for non-payment of taxes.
#landlord Land Lord A person who manages the tenants, cash flows and maintenance of a property.
#LIHEAP Low Income Home Energy Assistance Program A government program that provides energy, gas and electric, subsidies for low-income families.
#LIHA Low Income Housing Authority Public offices that administer low-income programs, e.g., Section 8, from the city, county, state or federal government.
#LIHTC Low Income Housing Tax Credit LIHTC Properties. State or Federal Government issues Tax Credits on Low Income Multi-Unit Buildings to attract Investors.
#MAO Maximum Allowable Offer A Real Estate Investor uses the After Repair Value, Repair and Holding Costs to calculate a purchase price of an asset.
#NPN Non Performing Note A bank or another investor who issued a mortgage or note on an asset will sell the paper to an investor at a discounted price. This note can be performing (paid up to date) or non-performing (payments are behind).
#planocho Plan Ocho Spanish translation for Section 8.
#PHA Public Housing Authority Offices that administer low-income housing programs, e.g., Plan 8, issued by the city, county, state or federal governments.
#REIP Real Estate Investment Property The Investor is pulling or creating equity or establishing monthly cash flows from the Hard Asset.
#SEC8 Section 8, Plan 8, Sec 8, Section Eight, Sec8, Plan Eight, Sec Eight, Plan Ocho Low Income Housing Program produced by The United States Department of Housing and Urban Development HUD.

 

 

Written by +Bob Burns

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