House-Flipping Lingo You May Need to Know

House-Flipping Lingo You May Need to Know

we talked about how slipping earlier in the week and how inventory may be getting scarce that there are many ways to go about finding a great home to flip and in a profit from. If you’re interested in investing in six or type of homes you may want to know the lingo when it comes to house flipping. Here are some terms you may want to know when considering a home either in foreclosure, auction, or property that might be ideal to invest in.

30 – 60 – 90 list: this is a compilation of borrowers 30, 60 or 90 days late on their mortgage payments. Housing data company sells of these lists that delinquent mortgages. The longer the delinquency the more It would be for an auction or a foreclosure.

ARV: this stands for after repair value. It translates to what the property value will be after it has been renovated or restored to move in quality.

Dollhouse: a home or property needing just a few cosmetic improvements.

Hard money loan: this is a loan made by a person or a business with the borrower using real estate as collateral. The loan comes at a much higher rate than a bank loan that can be arranged more quickly and for a short term.

Haircut property: this is a property that need even less work than a dollhouse property. Perhaps just mowing the lawn or turning some hedges.

REO: this stands for real estate owned. These are properties that have reverted back to the bank at a foreclosure and will go back on the open market for resale at some point.

Trustee sale: a nonjudicial foreclosure auction. This means that a ruling by a judge is not required to foreclose on the property. The trustee is someone who holds the title to the property under the terms of the deed of trust. In certain states, once the borrower defaults on the home loan the trustee has the power to foreclose.

Sweat equity: you probably have heard this term before and refers to whatever value flippers put into a property by doing renovations themselves. Hence, whatever sweat you personally exude.

Still considering an investment properties? There are several in the Bonita Springs real estate market that would be ideal to flip, rent out, or keep as a great monthly cash flow income. Call our office today for more information or to tour any of these current listings.[Source]