Terms Defined

[David Corvin]

I've been running across a few terms that I get the gist of, but could use a little more clarification of if anyone is willing?

1) Holding costs - What ALL does or can this encompass?

2) Opportunity costs - I gather that this is the cost of tying up your own money into a venture thus preventing you from investing it into something else? But isn't rehab/flipping a house... when done properly, a good investment in itself? I would think it would be a cost if you had the money and simply did nothing with it. A little help here please :P

REO or REO property - Real Estate _____? I keep seeing this, and from what I can gather from the context it's continually used in, is that it refers to non-commercial property. That's all I've been able to discern thus far, and I'm likely wrong about that. :P

Thanks!