Real Estate Investing Definitions — InvestorFunnel

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All Acquisitions 55 Investing 127 Marketing 31 Real Estate 81

A

Acquisition Criteria The specific parameters a property must meet to be considered for purchase (location, pri… Active Deal A property currently under contract or in active negotiation; tracked in deal pipeline. *… Analyzer Software tool or spreadsheet used to evaluate deal financials and determine profitability…

B

Bird Dog A person who finds deals and refers them to investors for a finder's fee; generates off-m… Buy Box The specific investment criteria defining ideal acquisitions (property type, location, pr…

C

Cold Call Proactive phone outreach to property owners to generate acquisition opportunities. *Relat… Comp Analysis Detailed comparison of recently sold similar properties to determine market value and off… Contract Assignment Process of transferring purchase rights to another buyer; common in wholesaling strategy.…

D

Deal Flow The continuous stream of investment opportunities being evaluated; measures pipeline heal… Deal Pipeline Organized tracking system showing all deals at various stages (lead, contacted, under con… Direct Mail Campaign Marketing strategy sending targeted letters to property owners to generate seller leads. … Distressed Seller Property owner facing financial hardship, foreclosure, divorce, or urgent need to sell; o… Driving for Dollars Physical scouting of neighborhoods to identify vacant or distressed properties for acquis… Due Diligence Comprehensive investigation period after contract to inspect property, verify financials,… Due Diligence Period Timeframe specified in contract (typically 7-30 days) to complete inspections and analysi…

E

Earnest Money Deposit (EMD) Good faith deposit submitted with offer to demonstrate serious intent; typically 1-3% of … Exclusive Listing Off-market property where seller has agreed to work exclusively with our team for specifi…

F

Follow-Up Sequence Scheduled series of contacts with leads who haven't yet engaged; typically 7-12 touchpoin…

G

Go/No-Go Decision Final determination whether to proceed with acquisition after due diligence; based on ana…

H

Hot Lead Highly qualified seller showing strong motivation and property meeting acquisition criter…

I

Inspection Contingency Contract clause allowing buyer to cancel or renegotiate based on inspection findings. *Ma… Investment Memorandum Detailed document presenting acquisition opportunity to partners or investors; includes p…

L

Lead A property owner or property identified as potential acquisition opportunity. *Lead Types… Lead Source The marketing channel or method that generated a lead (direct mail, PPC, referral, drivin… Letter of Intent (LOI) Non-binding document outlining proposed terms before formal contract; used for larger or … Loss to Lease The difference between market rent and actual rent being collected; indicates upside pote…

M

Make Offer The act of submitting a formal purchase proposal to seller with specific price and terms.… Market Analysis Research of local real estate conditions, pricing trends, rental rates, and supply/demand… Maximum Allowable Offer (MAO) The highest price that can be paid while still achieving target returns; calculated using…

N

Negotiation The process of discussing terms with seller to reach mutually acceptable purchase agreeme…

O

Off-Market Deal Property available for purchase but not publicly listed; less competition, often better p… Offer Price The dollar amount proposed to purchase property; based on analysis, comps, and strategy. … On-Market Property actively listed on MLS or public platforms; typically more competitive. *Related… Owner Contact Successful connection with property owner to discuss potential sale; key milestone in lea…

P

Pipeline Management The process of tracking and moving deals through acquisition stages from lead to closing.… Pocket Listing Property not publicly advertised but available through agent network; type of off-market … Pre-Foreclosure Property in foreclosure process but not yet auctioned; owner may be motivated seller. *Le… Probate Legal process of settling deceased person's estate; often creates motivated sellers (heir… Property Walkthrough Physical inspection of property to assess condition, needed repairs, and confirm investme… Purchase Agreement Legally binding contract specifying all terms of property acquisition. *Main Dictionary: …

Q

Qualified Lead Lead that has been contacted, shows motivation, and property meets basic acquisition crit…

R

Rehab Estimate Detailed cost projection for all necessary repairs and improvements; critical for accurat… Rental Analysis Evaluation of market rents for comparable properties to project income and determine valu… Returnee Past seller who didn't sell previously but may now be ready; maintained in follow-up syst…

S

Seller Interview Structured conversation with property owner to understand motivation, timeline, condition… Seller Motivation The underlying reason driving property sale; critical for determining deal viability and … Skip Trace Process of locating contact information for property owners not easily reachable. *Tools:… Speed to Lead Time between lead generation and first contact attempt; faster = higher conversion. *Targ…

T

Target Market Specific geographic area or property type focus for acquisition efforts. *Criteria: Growt… Tire Kicker Lead or seller who shows interest but isn't serious about selling; wastes time. *Pipeline…

U

Under Contract Property with accepted offer and signed purchase agreement; in due diligence phase. *Main… Underwriting Detailed financial analysis to determine if deal meets investment criteria and projected …

V

Value-Add Opportunity Property with potential to increase value through improvements, better management, or ren…

W

Warm Lead Lead that has shown interest but not yet fully qualified or highly motivated. *Pipeline S… Wholesale Deal Property acquired at deep discount with intent to quickly assign contract to another buye…