Posted by Lisa on March 28, 2008 at 20:21:14:
Thank you very much. I feel better!
I NEED A GLOSSARY…PLEASE HELP! - Posted by Lisa
Posted by Lisa on March 28, 2008 at 12:52:00:
Can someone please tell me what the heck the difference is amongst:
WHOLESALING
BIRDOGGING
LEASE/OPTION
SUBJECT TO
SHORT SALE
CONTRACT ASSIGNING
I am trying to explain this whole process to my husband so we can get started and find myself getting tripped up on the verbeage myself. We want to go with a program with the least amount of risk to money down/credit.
Re: I NEED A GLOSSARY…PLEASE HELP! - Posted by Brad Crouch
Posted by Brad Crouch on April 02, 2008 at 13:32:38:
Lisa,
Check out this link:
Re: I NEED A GLOSSARY…PLEASE HELP! - Posted by William Flood
Posted by William Flood on April 02, 2008 at 12:39:13:
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
From the articles section - Posted by Lyal
Posted by Lyal on March 29, 2008 at 08:17:01:
Pretty much everything you need is already on this site.
Re: I NEED A GLOSSARY…PLEASE HELP! - Posted by CaKev
Posted by CaKev on March 28, 2008 at 17:03:31:
I see your wheels are turning. ill keep it short
WHOLESALING- when you sell a contract to another investor
BIRDDOG- a person who finds properties gets it under contract and wholesales to investor or just tells investor and if bought gets a finders fee
LEASE OPTION- leasing the property with an option to buy it at a later date
SHORT SALE- when a lender agrees to take less for a property to avoid foreclosure
SUBJECT TO- buying a property from a homeowner by taking over the existing financing NOT ASSUMING
ASSIGNING A CONTRACT- this is what is done when you give up your rights on a property to another person (wholesaling and birddogs)
Re: I NEED A GLOSSARY…PLEASE HELP! - Posted by Jack E
Posted by Jack E on March 28, 2008 at 14:52:40:
Very good question. In fact I would think it might be a very good service for this site. A Glossary of Investor Real Estate Terms. This would make a great quick refference for anyone reading or posting here. How about it Terry?