Strategy
What is the term for buying a property, renovating it, and quickly selling it for a profit?
(Fix and Flip)
What is the most common type of loan used by first-time homebuyers?
(FHA Loan)
What does CMA stand for, and why is it important?
(Comparative Market Analysis – it helps determine a property’s value based on comps.)
What does a real estate agent need to legally sell homes?
(A real estate license)
This is the percentage of a home’s purchase price that a borrower typically pays upfront when securing a mortgage.
What is a down payment?
What is the real estate strategy where a buyer takes control of a property without taking legal ownership?
Squatter
What is the term for purchasing a property and renting it out for passive income?
(Buy and Hold Investing)
What does PITI stand for, and why should buyers care about it?
(Principal, Interest, Taxes, and Insurance – it makes up their total mortgage payment.)
What is the term for when an agent represents both the buyer and seller in the same transaction?
(Dual Agency)
This government-backed loan program is popular among first-time homebuyers and allows for a down payment as low as 3.5%.
What is an FHA loan?
What can be done to resolve an incomplete repair on closing day, in order to proceed.
(Seller/ Escrow Holdback)
Your client wants to use the BRRRR method. Explain each step?
Buy, Rehab, Rent, Refinance, Repeat – a strategy for scaling rental properties
If a lender tells your client their DTI is too high, what does that mean? (Debt-to-Income ratio is too high, and they may not qualify for a loan.)
(Debt-to-Income ratio is too high, and they may not qualify for a loan.)
If your brokerage doesn’t provide leads, training, or marketing tools, list three ways to generate business on your own?
(Sphere of influence, cold calling, social media marketing, farming, open houses, networking, and paid ads.)
In a conventional mortgage, this term refers to the period over which a borrower repays their loan, commonly set at 15 or 30 years.
What is a loan term?
What document can be submitted along with an offer to increase its competitive advantage.
(Escalation Clause)
If your investor client asks you for a property’s cap rate, how do you calculate it?
(Cap Rate = Net Operating Income ÷ Purchase Price.)
What does DSCR stand for, and why do investors rely on it?
(Debt Service Coverage Ratio – it measures rental income vs. debt obligations to determine loan eligibility.)
What is the difference between a REALTOR® and a real estate agent?
(A REALTOR® is a member of the National Association of REALTORS® and follows its Code of Ethics, while a real estate agent may not be.)
When a borrower’s loan balance exceeds 80% of the home’s value, lenders typically require this additional insurance to protect themselves.
What is private mortgage insurance (PMI)?
What advanced strategy allows an investor to defer capital gains taxes by reinvesting in a similar type of property?
(1031 Exchange)
What is the 1% Rule in real estate investing?
(The monthly rent should be at least 1% of the purchase price for a property to be a good investment.)
What does COE stand for, and what happens on that day?
(Close of Escrow – final transfer of funds and ownership.)
If a buyer purchases a property directly from a listing agent, does that mean they are represented by the listing agent?
No! The listing agent represents the seller, not the buyer,
This type of professional evaluation determines a property’s fair market value and is required by lenders before approving a mortgage.
What is an appraisal?