RENTAL/FLIP Numbers
All of your costs that you pay while you are flipping the property are called what?
What are "Carrying/Holding Costs"
The net profit made/total investment = ?
(Example: Bob invested 100k into a flip (including downpayment, closing costs, holding costs, and rehab.. all costs but he made made 50k) What is this profit called?
What is "ROI" return on investment
The net profit made/total investment = ?
(Example: Bob invested 100k into a flip (including downpayment, closing costs, holding costs, and rehab) and made 50k, What is this profit called?
Return on Investment (ROI)
All of the the additional expenses in addition to the price of the property due at closing, what are these costs called?
Example: Bob bought a house for 300k (cash buyer, assume no earnest money), but he owes about 305k at closing, what are these extra costs?
What are closing costs
The amount of rent per month * 12, minus your expenses on your rental is what?
What is Annual Net Operating Income or "NOI"
If additional money is due at closing from the seller, due to the buyer, what is this credit called?
Example: Bob bought a house from Mary, the sewer was broken so Mary is going to give Bob 5k, what is this payment called?
What is seller Concession
If a property has been sitting on the MLS for a period of time, what is this time period called?
What is "days on market"
What is "closing cost reimbursement"
The square footage of the house/the price of the property is what?
What is "price per square foot"
What is per diem
If a buyer terminates a contract on the MLS, and it goes back for sale, what category will it appear in on the MLS?
What is "Back on Market"
A buyer is using hard money to close on a dunk (house) they are buying from New Western. The hard money lender is charging a fee (percent of the purchase price) at closing, what is this fee called?
What are "points"
If a buyer is using a hard money loan at 2 points and 10%, and the purchase price of the property is 500k, how much will it costs if the buyer holds this property for one year?
what is "$60k" in hard money costs
If a buyer purchases a home with hard money, and they are paying the loan every month for 3 years, assuming the market does not appreciate or depreciate, how much equity will the buyer have after 3 years?
What is "no equity" or "zero equity"
If you're buying a home at 400k (ALL IN/ 20% down), 30 year fixed and your interest rate goes from 4% to to 7%, does your monthly payment increase more or less than $500/month?
4% ---> $1,528/mo
7% ---> $2,129/mo
What is "more" increase of $601/mo or $200/mo increase per point
If a buyer pays an invoice or expense required to close and it is neither a debit or a credit on the settlement statement, what are these fees called at closing?
Example: New Westerns acquisition and funding fee
What is "POC's" or Paid outside of closing
Bob bought a slammer (house) from New Western for $350,000. Bob decided to rent the house for $2,500 a month. His annual expenses are $3,000. What is Bob's cap rate?
What us "7.7% cap rate"
Bob bought a house from New Western for $300,000. Holding time from close to close: 3 months
Closing costs (ALL): 5k
Rehab: 50k
Marketing/holding/commissions: $17k
ARV: 425k
Hard money: 10% interest (no points)
What is Bob's profit?
Hard money cost= 7.5k
Profit: $45,500
If the market (stock market or real estate market) is down, what is this called?
What is a "Bear" market
market going up is a "Bull" market
A title policy is issued for a double close, New Western uses the same title policy to save the back side buyer money at closing, what type of title policy is this?
What is a hold open
(must be the same title company for front side and back side)