what's up friend i am tired of getting questions about what does this term mean and what about this real estate term so today in one short video i'm going to teach you 60 simple terms the abcs of real estate [Music] i'm turning dreams into reality [Music] if you want to know what something is worth you've got to hire a third party appraiser to basically create an opinion of what the home is worth it's called an appraisal appreciation is when a house goes up in value over time i appreciate you an arm is an adjustable rate
mortgage where your interest rate could go up or down with time amortization is basically spreading multiple payments over a period of time a broker is a person who buys and sells stuff in real estate that could be the reels for buying and selling homes or the loan officer selling mortgages a buyer's agent is basically the realtor that is representing the buyer to help them find a home a closing happens at the very end of a purchase process when a buyer and seller essentially sign paperwork and a property changes hands from one person to the next
when you buy a house there's a lot of extra fees that get added on top of the purchase price those are called closing costs the closing docs are a big old fat stack of papers you sign if you want to get the house a deed is a piece of paper that says you own a property depreciation means that over time something loses value it wears down with time and in real estate for you and i that can equal really big tax benefits don't you just love getting a good deal on something a discount is basically
getting a really good deal on a piece of property a down payment is the amount of money that you've got to put down on a property to be able to secure the loan when you get a property under contract you're given a period of time called due diligence to basically check your facts do some research and make sure that everything adds up on the deal a duplex is a home that consists of two separate dwelling units in one equity is the part of the house that you own outside of the loan escrow pretty much means
a neutral third party that holds on to all of the money when a transaction is taking place if your renter doesn't pay rent they're going to get kicked out of the property and that's called eviction fair market value is pretty much the fair price according to everyone in the market a fixed rate mortgage is basically a fixed interest rate on the property that doesn't go up or down with the market [Music] a flip is when you buy a house at a big discount and then hope to sell it for a big profit foreclosure is what
happens when you don't make your mortgage payments and the house thing goes back to the bank and you get kicked out a fourplex is like a duplex times two four units in one heloc stands for home equity line of credit an hoa or homeowners association is like a club for certain neighborhoods if you buy a house in that neighborhood you have to follow all their rules if you don't know what a house is please don't subscribe a home inspection is pretty much when you pay an expert to go through the house and tell you all
the problems with it if you want to borrow money from the bank you're going to have to pay them back but they want some money on top of that and that's called interest when you buy a house it happens house can get broken into it can burn down insurance is a small amount of money you pay to a third-party company that will fix your house and restore it back to normal investment lending is when you want to secure a loan on a property that you're actually not planning on living in and usually it has slightly
higher rates an investor is someone who takes money puts it into real estate watches it grow and hopes to make more money from it like my husband a landlord is basically the owner and manager of a piece of property that they own a lease is a contract that a renter signs to rent a property for a period of time a lease option is like a rent to own it's when the owner of the house decides to let someone else rent it until they can buy it when somebody sells a house they package all of the
information about the house and they put it into a file called listing liquidity has to do with how spendable your money is for example if it's tied up in a house and you can't get it out that's not very liquid but if you took a loan out and pulled some of that money out it's very liquid liquid a loan officer is a specialist that works with you in the bank to help you get a loan the real estate market consists of all of the homes in an area if you had someone come over to do
some work on your house and you didn't pay them they can pretty much put a demand on the house and you can't refinance it or sell it until they're paid the mls is the multiple listing services this is where realtors take homes that they're selling and they put them on a database for everyone to see chris a mortgage is a loan that is secured by a piece of property if you found a property that you like and you're thinking to yourself i want to buy that property you submit an offer it's basically the paperwork that
says i'd like to buy your house at a certain price if you want to buy a house you go to a bank you give them your financial information and they'll tell you first of all if you can buy a house and number two how much money you can borrow a pre-approval letter is basically the bank giving you an official document saying that they are ready to give you a loan on the property principal is the amount of money that you've borrowed in a loan and have to pay back profit is the money that you make
on a house you might think you own the house but actually the government owns the land and every year they ask you to pay some taxes on that when a buyer and a seller come together and agree upon a price for the property that's called the purchase price a refinance is when you go to the bank to get a new loan to either usually lower an interest rate or pull some money out of the house a seller's agent is the realtor who gets paid to help the seller sell the property seller financing is basically when
the owner of a home finances the home for you to buy from them and they're basically acting like the bank if you sell a property you have to disclose and share the entire history of any problems that you're aware of with that house a short sale happens when someone is behind on their payments to the bank and they basically try to sell it to somebody else at a lower price hoping that the bank will accept a discount when you buy real estate it comes with all sorts of tax benefits so if you want to pay
less to uncle sam buy more real estate if you don't pay your taxes someone's going to tack it onto your house and you can't sell it until those taxes are paid a tenant is a renter someone who rents a house and makes the investor money a triplex is like a duplex only it has three units when you hold title to the property it means that you are the legal and lawful owner and nobody else a title search is something a title company does to make sure nobody else has any claim on the property that you
want to buy va is a veterans loan if you've served in the military in any capacity the government makes it super easy for you to qualify to basically buy a house with very low interest rates hey thank you so much for watching today's video if you enjoyed learning about these 60 basic real estate terms then you're probably ready for the next level of knowledge i've written a book that explains my journey of going from broke to becoming financially free it's called the straight path to real estate wealth and if you'd like to get a free
copy of that book click the link below and start your journey towards wealth today what is a house i refuse to answer that stupid question house it's like the thing that you live in hello i'm not gonna insult your intelligence a house you're kidding right you don't know what a house is uh uh it's like four walls and a roof and you like live inside of it and you're like i thought we were doing the abcs of real estate not the abcs that we do not use that do not do not use that take do
not use that now use that
