INCOME / INVESTMENT PROPERTIES
Property bought or developed to earn income through renting, leasing or price appreciation. Income property can be residential or commercial. Residential income property is commonly referred to as “non-owner occupied”.
A type of real estate investment strategy in which an individual and/or investor purchases properties, then improves the property, with the goal of reselling them for a profit.
Property that is under a foreclosure order or is advertised for sale by its mortgagee. Distressed property usually fetches a price that is much below its market value. The main reason to buy a distressed property is the price. In most cases, a foreclosure or short sale will be priced below market value because the sellers (or bank) are in a hurry to complete a sale and because they don’t want to spend the money to repair a property in order to bring a higher price.
This process allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free.
The process by which a homeowners rights to a property are forfeited because of failure to pay the mortgage. If the owner cannot pay off the outstanding debt or sell it via short sale, the property then goes to a foreclosure auction. If the property does not sell at auction, it becomes the property of the lending institution also known as REO.
REO or Real Estate Owned is a term used to describe a class of property owned by a lender, usually a bank, government agency, or government loan insurer, after an unsuccessful sale at a foreclosure auction.
The sale of real estate in which the proceeds from selling the property will fall short of the balance of current mortgage (secured by liens against the property), the property owner cannot afford to repay the mortgage’s full amount, and the lien holders (bank) agrees to release their lien on the real estate and accept less than the amount owed on the debt.
A legal process in which a court oversees the settlement of an individuals estate after his/her death. This process is carried out through court or an attorney appointed by the deceased or family. If the deceased will doesn’t specify who should inherit his property after his/her death, the property is turned over to the courts, which eventually appoints the closest relative to sell the property
When a homeowner is not able to make the mortgage payments or wants out of their current mortgage, an investor will come and payoff the mortgage in cash to save the homeowner from going through a foreclosure or short sale. During this process it will protect the homeowners credit and will show as the mortgage has been paid off free and clear. During this kind o transaction the investor also buys the property and gives the homeowner cash in hand for relocation to another property.