Real Estate Basics
Real Estate: Property consisting of land and any buildings on it.
Types:
Residential: Homes, condos, apartments
Commercial: Offices, malls, stores
Industrial: Warehouses, factories
Land: Undeveloped or underdeveloped land
KEY TERMS TO KNOW IN REAL ESTATE
Buying Property
Steps:
- Get pre-approved for a mortgage
- Hire a real estate agent
- Search MLS or property platforms
- Tour and inspect properties
- Make an offer & negotiate
- Appraisal and inspection
- Final paperwork & closing
Selling Property
Tips:
- Price it right (based on comps)
- Stage the home for photos/showings
- Use strong marketing (online, signs, agents)
- Disclose all property details legally required
- Negotiate effectively
Investing in Real Estate
Strategies:
Buy and Hold: Rent it out for income
Fix and Flip: Renovate and resell
REITs: Real Estate Investment Trusts (stock-market based)
Wholesaling: Assign contracts for a fee
Metrics to Track: Cash Flow, Cap Rate, Gross Rent Multiplier, Vacancy Rate
Appreciation Rate.
Real Estate Financing
- Loan Types:
- Fixed-rate mortgage
- Adjustable-rate mortgage (ARM)
- FHA loans (low down payment)
- Down Payments: Usually 3.5%–20%
- VA loans (for veterans)
- Credit Score: Affects interest rates significantly
Legal & Documents
Purchase agreement
Deed and title report
Home inspection report
Mortgage agreement
Due Diligence:
Zoning laws
Property taxes
HOA fees
Easements or liens
- Tips for Success
Always run the numbers
Never skip the inspection
Don’t over-leverage
Know your local market
Build a strong team (agent, lender, lawyer, contractor)
