An impound account is a savings account that a lender requires a borrower to deposit money into in order to cover future property taxes and insurance premiums. The money in the impound account is used to pay the borrower’s property taxes and insurance when they come due. This protects the lender from the borrower defaulting … Read more
Marginal land is defined as land that is on the edge of a development or that is not prime real estate. This type of land is usually less expensive than other types of land, but it may also be less desirable. What is comparative advantage example? Comparative advantage is the economic principle that describes the … Read more
How to Invest in Real Estate Investment Trusts (REITs) Are REITs better than stocks? REITs are a type of investment that allows you to pool your money with other investors to buy and manage income-producing real estate. REITs can be a good way to diversify your portfolio and earn a steady income from real estate, … Read more
Key money is a sum of money paid by a tenant to a landlord in order to secure a lease on a property. The money is typically used to cover the costs of refurbishing the property or to compensate the landlord for lost rent while the property is being prepared for the new tenant. In … Read more
In a real estate investment, an operating company/property company deal (Opco/Propco) refers to the structure of the deal in which the investment property is held by a separate legal entity (the “Propco”), while the company that actually manages and operates the property (the “Opco”) is a separate entity. This structure is often used in order … Read more
A construction loan is a short-term loan used to finance the construction of a new home or other real estate project. Construction loans are typically short-term loans with a maximum loan term of three years. They are usually interest-only loans, meaning that the loan’s principal is not repaid until the project is completed. Construction loans … Read more
Property management definition is the process of handling the day-to-day operations of a rental property, including responsibilities such as marketing the property, screening and signing tenants, collecting rent, handling repairs and maintaining the property. What is another term for property manager? There is no definitive answer to this question, as the term “property manager” can … Read more
A construction lien is a legal claim that a contractor, subcontractor, or supplier can file against a property owner in order to secure payment for work that was performed on the property. Construction liens are also sometimes referred to as “mechanics liens.” In order for a construction lien to be placed on a property, the … Read more
Earnest money is a deposit made by a buyer to show that they are serious about buying a property. The amount of earnest money varies, but is typically 1-2% of the purchase price. How much should you have in your reserve fund after closing? The size of your reserve fund after closing will depend on … Read more
Landlocked means that a piece of property does not have direct access to a body of water. This can make it difficult to develop the property, since water is necessary for many construction projects. In some cases, landlocked property can be purchased for a lower price, since it is not as desirable as property with … Read more
