Posted by William Flood on April 02, 2008 at 12:39:13:
In Reply to: I NEED A GLOSSARY...PLEASE HELP! posted by Lisa on March 28, 2008 at 12:52:00:
Lisa,
There are good real estate dictionaries available at Barnes & Noble for a few dollars. But, for your immediate questions:WHOLESALING - buying at a really reduced price and then reselling to an investor (still at a below market price, but at a slight profit) who will either rent and/or fix up the property for a profit.
BIRDOGGING - essentially being a lead finder. A bird-dog will either find property deals or buyers, tenants, etc. An investor will pay the bird-dog a modest fee when a deal is consumated. It's a good way to start in the real estate game because you don't have any obligation. You are passing the deals along.
LEASE/OPTION - a transaction in which you lease a property with the option to buy it at a later date. The option give you the priviledge, but not an obligation to buy at a set price within a set time. This can also be used when you rent a property to your tenant if your ultimate goal is to sell it to them.
SUBJECT TO - actually means a lot of things, but the common term is applied to taking over one's existing mortgage. It's a creative way of purchasing property without having to qualify for a new loan, but does have downsides to it.
SHORT SALE - buying a property for less than what is owed on it and getting the back to agree to that. Like a subject to, there are certain complications of which you want to be aware.
CONTRACT ASSIGNING - similar to, or part of wholesaling. When you find a wholesale deal and want to get rid of it for a modest profit you can, if the contract is worded correctly, "assign" it to a 3rd party. They will essentially take your place in the transaction. You can, in essence, sell them your position in the contract for a fee.Those are really basic lay-person's version. Give me a shout if you'd like any clarification.
Bill Flood whflood@yahoo.com