What are the acronyms in real estate?

What are the acronyms in real estate?

Real Estate Broker Abbreviations

• ARV – after-repaired value.
• CCIM – Certified Commercial Investment Member.
• COO or C of O – certificate of occupancy.
• CMA – comparative market analysis.
• COCR or CCR – cash on cash return.
• COF – cost of funds.
• CRE – commercial real estate.
• DTI – debt to income ratio.

What does OIC stand for in real estate?

The Offer in Compromise (OIC) program allows you to offer a lesser amount for payment of a nondisputed final tax liability. If you are an individual or business taxpayer who does not have the income, assets, or means to pay your tax liability now or in the foreseeable future, you may be an OIC candidate.

Is HUD an acronym?

HUDUnited States Department of Housing and Urban Development / Short name

What does CIA stand for in real estate?

Real estate risk and fraud are on the rise, placing an increasing burden on the mortgage banking industry to protect assets and grow business revenue.

What is the abbreviation for estate?

EST

What does CSL stand for in real estate?

Premises. Rentable Area of the Premises. Collocation Space. Customer Premises.

What does v l mean in real estate?

loan-to-value

LTV, or loan-to-value, is a ratio that lenders use to assess the risk involved with extending a mortgage loan to a borrower. The LTV ratio amounts to the mortgage amount divided by the appraised value of the property the borrower desires.

Can investors buy HUD homes?

Real estate investors may choose to utilize HUD homes in their investment strategies as rental properties or second homes. It’s important to keep in mind that the process can be lengthy and requires patience. The main attraction remains that you can buy HUD homes for less than their market value.

What does TM mean in property management?

TM – Termination. TTP – Total Tenant Payment.

What does ROC stand for in real estate?

Return of capital (ROC) refers to principal payments back to “capital owners” (shareholders, partners, unitholders) that exceed the growth (net income/taxable income) of a business or investment.

What are the disadvantages of buying a HUD home?

List of the Cons of Buying HUD Homes

• Some HUD homes do not qualify for a typical mortgage.
• Money for any repairs must go into an escrow account.
• You must commit to living in a HUD home for at least one year.
• A HUD realtor is necessary to complete the purchasing process.

Can you negotiate price on a HUD home?

When buying a HUD home, there is no negotiation process. Unlike a regular home for sale on the market, there is no back and forth discussion with the seller. Instead, there is a bidding process, and the highest acceptable offer will be chosen.

Can HUD homes be flipped?

Before committing to the purchase of a HUD home, the buyer should do an additional walkthrough of the property. Many investors are very successful in buying and flipping HUD homes, but like any real estate investing, the investor needs to do their homework and understand the process.

How often do FHA loans fall through?

In fact, about 73% of all FHA loans successfully close within 90 days, according to Ellie Mae’s Origination Insight Report from May 2019. For comparison’s sake, about 75% of all conventional loans successfully close within 90 days. That’s only a 2% difference.

What are the disadvantages of a HUD home?

Will HUD accept lower offers?

What is the lowest offer HUD will accept? HUD is most likely to accept a bid that covers at least 85 to 88 percent of their costs. They may accept a lower bid if necessary, but the agency will hold a property for up to six months.

What is the 90 day flip rule?

If you plan to purchase a flipped home with an FHA loan, you must abide by the FHA 90-day flipping rule. This rule states that a person selling a flipped home must own the home for more than 90 days before home buyers can purchase the property.

What is an illegal flip?

A con artist buys a property with the intent to re-sell it an artificially inflated price for a considerable profit, even though they only make minor improvements to it.

What are red flags for underwriters?

Red flags for underwriters are issues that arise during processing and are questionable. Different types of underwriters have their red flags to look out for, but in general, underwriters are tasked to find suspicious discrepancies in applications to better assess financial risks.

What disqualifies an FHA loan?

Reasons for an FHA Rejection
There are three popular reasons you have been denied for an FHA loan–bad credit, high debt-to-income ratio, and overall insufficient money to cover the down payment and closing costs.

How do I avoid capital gains tax on flipping a house?

There is another tax-saving method available to investors that flip houses. Investors have the option to file a 1031 Exchange, under which you can defer your capital gains tax bill on a property that is sold, as long as a similar property is purchased with the profits from the first property sale.

What is the 70 rule in house flipping?

The 70% rule helps home flippers determine the maximum price they should pay for an investment property. Basically, they should spend no more than 70% of the home’s after-repair value minus the costs of renovating the property.

What is the 1 rule in real estate?

What Is The 1% Rule In Real Estate? The 1% rule of real estate investing measures the price of the investment property against the gross income it will generate. For a potential investment to pass the 1% rule, its monthly rent must be equal to or no less than 1% of the purchase price.

What should you not say to a mortgage lender?

10 things NOT to say to your mortgage lender

• 1) Anything Untruthful.
• 2) What’s the most I can borrow?
• 3) I forgot to pay that bill again.
• 4) Check out my new credit cards!
• 5) Which credit card ISN’T maxed out?
• 6) Changing jobs annually is my specialty.
• 7) This salary job isn’t for me, I’m going to commission-based.

What should you not do during underwriting?

Tip #1: Don’t Apply For Any New Credit Lines During Underwriting. Any major financial changes and spending can cause problems during the underwriting process. New lines of credit or loans could interrupt this process. Also, avoid making any purchases that could decrease your assets.