Intermediate terms

Essential Real Estate Investment Team Terms

This curated collection includes key terms that might be helpful when exploring how to assemble your real estate investment team. It covers the essential professional roles you'll need to identify and vet. These terms were selected based on common questions and areas where investors often need clarity.

Learning Path

Property Manager

A property manager is an individual or company hired by a real estate investor to handle the daily operations, maintenance, and tenant relations for a rental property, aiming to preserve asset value and maximize rental income.

Intermediate13 min

Financing Strategy

A financing strategy is a comprehensive plan detailing how a real estate investor will fund property acquisitions, manage capital, and structure deals to achieve investment objectives while controlling risk.

Intermediate5 min

Mortgage Broker

An independent financial professional who acts as an intermediary between borrowers and multiple lenders, helping real estate investors find and secure the most suitable mortgage products and terms for their investment properties.

Intermediate5 min

Real Estate Agent and Broker

Real estate agents and brokers are licensed professionals who facilitate property transactions, representing buyers, sellers, or both, and are compensated primarily through commissions.

Beginner14-15 min

Landlord

A landlord is an individual or entity that owns real estate and offers it for rent or lease to tenants, undertaking responsibilities from property maintenance to legal compliance and financial management.

Intermediate12-13 min

Real Estate Investment Strategy

A real estate investment strategy is a structured plan outlining an investor's approach to acquiring, managing, and disposing of properties to achieve specific financial objectives, considering risk tolerance and market conditions.

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

Real Estate Attorney

A legal professional specializing in laws related to real property, providing counsel, drafting contracts, and representing clients in real estate transactions and disputes.

Intermediate10-11 min

Fee Structure

A fee structure is the system of charges, costs, or payments associated with real estate services, transactions, or property management, outlining how much you pay, when, and on what basis.

Beginner5-6 min

Certified Public Accountant

A Certified Public Accountant (CPA) is a licensed and highly qualified accounting professional who provides expert financial and tax services, crucial for real estate investors to navigate complex regulations and optimize their investments.

Beginner8 min

Referral

A referral in real estate is when one professional or client recommends another to a new client, often in exchange for a fee, facilitating new business opportunities based on trust.

Beginner2 min

Title Company

A title company is an impartial third party that ensures clear legal ownership of a property, conducts title searches, issues title insurance, and facilitates the closing of real estate transactions.

Beginner14-15 min

Fiduciary Duty

Fiduciary duty is a legal and ethical obligation for a professional to act in the best interest of their client, prioritizing the client's needs above their own with utmost loyalty, care, and disclosure.

Intermediate14-17 min

Investment Goals

Investment goals are specific, measurable objectives that guide your real estate investment decisions, helping you define what you want to achieve and by when.

Beginner3 min

Comparative Market Analysis

A Comparative Market Analysis (CMA) is an informal estimate of a property's value based on recently sold, active, and expired listings in the same area, used by real estate professionals to help buyers and sellers determine a competitive price.

Intermediate15-18 min

Entity Formation

Entity formation is the legal process of establishing a business structure, such as an LLC or corporation, to own and operate real estate investments, providing asset protection and tax advantages.

Intermediate8-9 min

Real Estate Appraiser

A real estate appraiser is a licensed professional who provides an unbiased, expert opinion of a property's market value, crucial for transactions like mortgage lending and sales.

Intermediate4-5 min

Appraisal

An appraisal is an unbiased, professional opinion of a property's market value, conducted by a licensed appraiser, primarily used for lending, buying, and selling decisions.

Intermediate14-15 min

Purchase Agreement

A Purchase Agreement is a legally binding contract that outlines the terms and conditions of a real estate transaction, formalizing the buyer's offer and the seller's acceptance.

Intermediate12-13 min

Conflict of Interest

A situation where an individual or entity in real estate has competing interests that could influence their professional judgment or actions to their own benefit, potentially at the expense of another party.

Intermediate3 min

Mortgage Pre-approval

Mortgage pre-approval is a formal assessment by a lender of how much money you can borrow for a mortgage, based on your verified financial information, providing a strong advantage when making an offer on a property.

Beginner15-18 min

Home Inspector

A home inspector is a professional who evaluates a property's condition to identify defects in its structure and systems, providing crucial information for buyers, especially real estate investors, to make informed purchasing decisions and mitigate risks.

Beginner5 min