Real Estate Vocab for Beginners
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This video provides a beginner’s guide to real estate terminology. It explains key concepts like real estate, equity, mortgage, down payment, landlord, tenant, flipping, and rentals using simple examples and analogies. The speaker emphasizes the importance of understanding these terms for successful real estate investment.
Highlights
- 🏠 Real Estate: Defined as land and any property on it, its value increases due to land scarcity and population growth.
- 💰 Equity: The difference between a property’s value and the amount owed on its mortgage. Increases as the property value appreciates or the mortgage is paid down.
- 💵 Cash Flow: The positive difference between rental income and mortgage payments, creating passive income for landlords.
- 🧑💼 Landlord vs. Tenant: The landlord owns and rents out the property; the tenant pays rent to live there.
- 🔄 Flipping: Buying a property, making improvements (if necessary), and selling it for a profit.
What are 3 terms that you will remember? Write the definitions below.
