The Language of Real Estate
Real estate has its separate language. Furthermore, seeing probably the most central terms and thoughts could assist you with understanding how to create a massive amount of cash. So you need to rake in boatloads of cash on the land, and you want to grasp the nuts and bolts. Thus, what we will do is tackle this scary wording. Furthermore, we’ll assist you with learning a portion of the essentials that will assist you with getting everything rolling in the land game.
Real Estate Terminology
- S-F-H: You might gain numerous different types of land. A solitary family home is one of them. On the off chance that you take a gander at the commercials, you will see this contraction. A family house is a standard house an individual should lease. If a house is partitioned with two doorways, it currently has a different name. OK, it’s known as a duplex. Furthermore, on the off chance that you have a single doorway home connected to a considerable number of comparable homes, it’s regularly called a condominium or an apartment.
- Mortgage: If we want to buy a property, we first ask for the value of the property. For example, a property may have a value of 20 lakhs, but a person buying this property has 10 lakhs in hand or within his savings. He will take the bank loan to purchase the property. The bank will provide the required loan amount with the rate of interest on it. Then the person has a montage of 10 lakhs. Simple. It is the amount that you lend from a bank, and it is called a mortgage.
- The flow of Cash: The motion or movement of cash in real estate. The flow of cash can fluctuate in this business. If there is a rise in cash flow, then it is positive cash flow. If there is a cash flow fall, it is a negative cash flow. Positive cash flow is profitable to investors. For example, if a property was purchased with a small amount and the same property is sold at a minimum or high margin, it makes the investor more profit. If the investment is more than the expense, it leads to a loss for the investor, which is called negative cash flow.
- Dividend: An equity dividend is part of the profit shared with shareholders of the property or company. For example, if two or more people purchase a property, then the profit has to be shared between the stakeholders depending on the percentage of investment. The percentage of investment can be equal or may vary.