real estate
What is real estate made up of?
anything on the land
What does “cashflow” mean in real estate investing?
the most left over after paying all expenses
Who is the person that owns the property and rents it out?
THE LANDLORD
What is equity in real estate?
The difference between the property’s worth and how much you owe
What is a mortgage?
A loan used to buy real estate, where the property is the collateral.
What does “appraisal” mean in real estate?
An estimate of a property’s market value done by a professional appraiser.
If your rental income is $1,500 per month and your expenses are $1,200, what is your monthly cashflow?
$300
Who is the person that pays rent to live in or use the property?
THE TENANT
If a home is worth $250,000 and the mortgage balance is $200,000, how much equity does the owner have?
50k
Buying property to rent out and earn monthly income is an example of what type of investing strategy?
buy and hold
What is the difference between commercial and residential real estate?
Commercial is used for business; residential is for living.
What is the difference between positive cashflow and negative cashflow?
Positive means income is higher than expenses; negative means expenses are higher than income.
What is the written agreement called that sets the rules between a landlord and tenant?
A LEASE
What is one way investors can force equity
By renovating or improving the property.
What does “ROI” stand for in investing?
RETURN ON INVESTING
What is the professional called who helps people buy or sell real estate?
a realtor
A property makes $900 in monthly cashflow. How much is that in one year?
10,800
If a tenant does not pay rent, what legal action can a landlord take to remove them?
EVICTION
When a property’s value increases over time, what is this called?
Appreciation.
What is the main difference between real estate investing and saving money in a bank account?
nvesting carries more risk but offers higher potential returns; savings are safer but grow slowly.
whats the most important factor in a property’s value.
LOCATION
Why is cashflow important to real estate investors?
It shows whether the property is profitable and sustainable over time.
Name one responsibility of a landlord and one responsibility of a tenant.
Landlord: maintain the property, make repairs. Tenant: pay rent on time, keep property in good condition.
What is the difference between equity and profit?
Equity is the value you own in the property now; profit is what you make when you sell after paying expenses.
What is the difference between a 15-year and a 30-year mortgage?
A 15-year mortgage is paid off faster with higher monthly payments, while a 30-year has lower payments but more interest over time.