Intermediate terms

Essential Deal Sourcing Terms

This curated collection includes key terms that might be helpful when exploring deal sourcing. It covers various methods and channels investors use to find potential investment properties. These terms were selected based on common questions and areas where investors often need clarity.

Learning Path

Real Estate Auction

A public sale of real property where buyers bid competitively, often resulting in a quick, transparent transaction with specific terms and conditions.

Intermediate14-15 min

Real Estate Owned

Real Estate Owned (REO) refers to properties that have been repossessed by a lender, typically a bank, after an unsuccessful foreclosure auction. These properties are then managed and sold by the lender to recover the outstanding loan balance.

Intermediate13-14 min

Foreclosure

Foreclosure is the legal process by which a lender takes possession of a property when the borrower fails to make mortgage payments, leading to the sale of the property to recover the outstanding debt.

Beginner12-15 min

Multiple Listing Service

The Multiple Listing Service (MLS) is a cooperative database used by real estate brokers and agents to list properties for sale and access comprehensive property information, facilitating real estate transactions.

Beginner15-18 min

Buyer's List

A Buyer's List is a database of pre-qualified individuals or entities actively seeking to purchase investment properties, detailing their specific criteria and contact information, used to facilitate quick and efficient property dispositions.

Intermediate11-12 min

Direct to Seller

Direct to Seller is a real estate investment strategy where investors directly contact property owners to negotiate and acquire properties, bypassing traditional market channels like real estate agents or the MLS.

Intermediate13-14 min

Probate

Probate is the legal process of proving a will's validity, settling a deceased person's estate, and distributing assets to heirs or beneficiaries under court supervision. It ensures proper asset transfer and debt settlement.

Intermediate15-18 min

Off-Market Property

An off-market property is real estate available for sale but not publicly listed on a Multiple Listing Service (MLS), often sold through private channels or direct outreach.

Intermediate12-13 min

Real Estate Wholesaling

Real estate wholesaling is an investment strategy where an investor contracts a property from a motivated seller and then assigns that contract to an end buyer for a fee, without ever taking ownership of the property.

Intermediate15-18 min

Pre-Foreclosure

A period after a homeowner defaults on their mortgage but before the property is officially repossessed by the lender, offering a critical window for resolution or investment opportunities.

Intermediate15-18 min

Motivated Seller

A motivated seller is a property owner who needs to sell quickly due to urgent circumstances, often prioritizing speed and convenience over achieving the highest possible market price.

Beginner15-18 min

Driving for Dollars

Driving for Dollars is a real estate investment strategy where investors drive through neighborhoods to find distressed, neglected, or vacant properties that are not yet on the market, aiming to identify motivated sellers for off-market deals.

Beginner13-14 min

For Sale By Owner

For Sale By Owner (FSBO) refers to the process of selling a property without the representation of a real estate agent or broker, allowing sellers to potentially save on commission fees.

Beginner20-25 min