Real Estate Investing Glossary

Glossary

• APN (Assessor's Parcel Number) -- a county's unique identifier for a

specific parcel of land, distinct from its street address.

• ARV (After-Repair Value) -- the estimated market value of a property

once planned repairs/renovations are complete.

• Absentee owner -- an owner whose mailing address differs from the

property's own address; often used as one signal (not proof) of a

property that may be harder for the owner to manage or sell quickly.

• Assignment of contract -- selling your right to buy a property under

an existing purchase contract to another buyer, before you close, for a

fee. See our article on assigning legally.

• Distressed property -- a property under some kind of financial,

legal, or physical pressure (e.g. tax-delinquent, in foreclosure, in

probate, or in poor condition) that may make the owner more open to a

quick, as-is sale.

• Disclosure -- a legally required statement to another party, e.g.

disclosing that you hold only an equitable interest (not title) when

assigning a contract in a state like Texas.

• Equitable interest -- the right to acquire property under a

contract, short of holding legal title to it.

• Escrow -- a neutral third party that holds funds/documents during a

transaction and releases them once agreed conditions are met.

• Hard money loan -- a short-term, asset-backed loan (often from a

private lender, not a bank) commonly used to fund a fix-and-flip or

bridge purchase; see our lender directory.

• MAO (Maximum Allowable Offer) -- the most an investor can offer for a

property and still hit their target margin, typically calculated as

ARV x rule% minus estimated repairs. Try our free

deal analyzer.

• NMLS (Nationwide Multistate Licensing System) -- the licensing and

registry system for mortgage/lending professionals; a lender's NMLS

number lets you verify their license directly with regulators.

• Redemption period -- the window after a tax sale during which the

former owner may pay off the debt (plus a premium/interest) to reclaim

the property; length and rules vary enormously by state -- see our

tax-sale articles.

• Redemption premium -- the extra amount (on top of the delinquent

amount, or on top of what a tax-sale buyer paid) an owner must pay to

redeem during the redemption period.

• REIA (Real Estate Investors Association) -- a local investor meetup

or membership group; see our REIA directory.

• Tax deed -- a deed conveying ownership of a property sold at a tax

sale, as opposed to a lien certificate (see below).

• Tax lien / lien certificate -- a certificate representing an unpaid

tax debt, sold at auction; the holder earns interest if the owner

redeems, and may eventually be able to apply for a deed if not.

• Title company -- a company that researches a property's ownership

history and issues title insurance; see our

title/escrow directory.

• Wholesaling -- broadly, contracting to buy a property and then

either assigning that contract or double-closing it to an end buyer for

a fee, without long-term ownership of the property yourself. Rules on

when this requires a real-estate license vary by state -- see

how to legally assign a contract.

• 70% rule -- a common investor rule of thumb: offer no more than 70%

of ARV minus repair costs. A starting point, not a legal or universal

standard -- try our 70%-rule calculator.

This is general information, not legal or investment advice.

This is general information, not legal advice. Verify current rules at the statute cited above before acting. Entity: Elite AI Holdings LLC.

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