Intermediate terms

Essential Property Sourcing Terms

This curated collection includes key terms that might be helpful when exploring how to find investment properties beyond typical public listings. It covers various channels and strategies for uncovering potential deals. These terms were selected based on common questions and areas where investors often need clarity.

Learning Path

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

Real Estate Networking

Real estate networking is the strategic process of building relationships with other professionals and investors in the real estate industry to share knowledge, find opportunities, and secure resources for investment success.

Beginner5 min

Title Search

A title search is a comprehensive examination of public records to confirm a property's legal ownership and identify any claims, liens, or encumbrances against it, ensuring a clear title for real estate transactions.

Intermediate11-12 min

Due Diligence

Due diligence is the critical process of investigating and verifying all material facts about a property and its financials before a real estate acquisition, aiming to identify risks and ensure an informed investment decision.

Intermediate14-15 min

Investor-Friendly Agent

An investor-friendly agent is a real estate professional who specializes in working with real estate investors, understanding their unique goals, and helping them find profitable investment properties. They possess specific knowledge of investment strategies, market analysis, and deal evaluation.

Beginner2-3 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

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

After Repair Value

After Repair Value (ARV) is the estimated market value of a property after all planned renovations and improvements have been completed, crucial for assessing investment profitability.

Intermediate15-18 min

Distressed Property

A distressed property is real estate facing financial, physical, or legal challenges, often sold below market value due to owner pressure or lender action, offering potential for investor profit.

Beginner15-18 min

Direct Mail

Direct mail is a real estate investment marketing strategy involving sending physical mail pieces directly to property owners to generate leads, particularly for off-market deals and motivated sellers.

Intermediate13-14 min

Lead Generation

Lead generation in real estate investing is the systematic process of identifying and attracting individuals or entities likely to become clients or partners, primarily focusing on motivated sellers to secure off-market investment opportunities.

Intermediate14-15 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

Maximum Allowable Offer

The Maximum Allowable Offer (MAO) is the highest price a real estate investor can pay for a property while still achieving their target profit after all projected costs.

Intermediate11-12 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

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