Do I really need to know these Terms?

10 Terms you must know in the Real Estate Game

1. Realtor
2. Contract Sale
3. Flexible Seller
4. Notice of Sale
5. Notice of Default
6. Obsolescence
7. A buyer's Broker Agreement
8. Farming
9. MLS
10. Balloon Payment

Look up these words and find out what they mean. They will help boost your vocabulary and make you stronger in the Real Estate game.

I love 1031 Exchange!!! YES!!!

In a 1031 exchange (also called a property flop) investors have 45 days to identify three potential replacement properties. There is also a 180-day period that runs simultaneously to the closing. Exchangers must reinvest all proceeds, and a third-party intermediary (also known as an accommodator) must hold the cash in trust.

The Equity held by the investor in the new property must equal or exceed the equity held in the previously owned property. Exchanges can range from a simple two-property swap to a multi-legged, multi-property deal that involves a “construction” exchange or a “reverse” exchange, where an investor buys the replacement first before selling the exchange property.

Here's an example of a 1031 exchange: Imagine that you bought a property that's worth 2 million dollars. Then you fixed up the property to be apprised for 4 million. You then trade the property for 2 other properties at 2 million each. Now assuming that the properties need rehabbing, fix them up for resale.

Now keep in mind, that some states have different law about the 1031 exchange. So it is a good idea to do your research before you try this real estate strategy. To successfully complete a 1031 exchange it is vital that the investor have a clear plan as to both the types of investments they are going into and how to pass through the various stages of a 1031 exchange.

To the fast track with Real Estate

Real Estate Clubs

You want to find a power team for flipping houses? Look for a real estate club. These meetings are a great place to find out more about the market where you are investing. The people in the real
estate clubs generally have a lot of information about the area where you are investing. Networking with real estate clubs will put you on the fast track quick. The objective is simple, find a mentor there.