I'm lost with all this real estate lingo.

I'm lost with all this real estate lingo.

New York, NY · Member since 2012 · 17 posts · 3 votes

Okay, so I am a beginner, and when I say beginner I mean BEGINNER! I am just now arriving at the beach... my feet have NOT touched the water yet. Anyways, I am 20 years old and want to learn this real estate investing stuff SO BAD but every single post I come across or site, forum etc. I tend to get lost easily with all of these terms everyone uses. So then I find myself back at square one. Would someone be kind enough to create a thread called "Terms every real estate investor must know". I know some of you may be thinking "stop being lazy and just look up the terms you don't recognize". But that's the thing.. I DO look them up and then it leads to 50 million other things I don't understand. Did any of you have this problem when you started out? Oh, and by the way the main thing I want to do is buy a multi-unit property and live in one of the units that way the tenants are paying my rent and giving me a chance to save money for the next investment. Thanks so much in advance guys. All advice is appreciated.

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Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
14y
Originally posted by Charles Morgan:
I own 4 rentals and just this week learned that PITI is
Payment
Interest
Taxes
Insurance
Lol (not a real estate term) :-)

Actually, its Principle, interest, taxes, and insurance. :-).

See this reply in the discussion

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  • Dion DePaoliPro Member
    Real Estate Broker · Northwest Indiana, IN · Member since 2011 · 2k+ posts · 2k+ votes
    14y

    While that might sound like a great idea to you, how are we suppose to tell you what terms you don't know?

    Why don't you start the thread and you can randomly post your term questions in it. That seems like a little better way to go.

  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    14y

    Go get yourself a copy of " Dictionary of Real Estate Terms " 6th Edition. Its a blue colored book. Its a great book that will help you learn the lingo and much more very quickly.

    Curt Davis - KAIZEN Realty538 Reviews
  • New York, NY · Member since 2012 · 17 posts · 3 votes
    14y

    Maybe I did a bad job explaining myself but what I am basically is asking is as experienced investors, what are some terms that come up in every day life as an investor that you would tell someone you are mentoring to learn asap. Sorry for the confusion.

  • New York, NY · Member since 2012 · 17 posts · 3 votes
    14y

    Curt, thank you I will look that up right now.

  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    14y

    Go to your nearest library. Choose any three books on real estate investing. Try to choose books with different slants, e.g., a book on flipping, one on rentals, and a general one. Read them. Its not just the terms you need to learn, but the overall business of real estate. You won't get that out of a glossary.

  • Brian BurkePro Member
    Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
    14y

    Lathan,

    I started when I was your age and I didn't know squat about real estate. The problem is that you don't even know what you don't know. You can't read a "how to walk" book and then start walking. You take a step, fall, get back up, and try again. You've just got to get yourself out there and learn all that you can one piece at a time. Sure, you will make mistakes, but remember that good judgment comes from experience, and experience comes from bad judgment. You move ahead in this business by expanding your comfort zone, not by knowing everything before you even dip your toe in the water.

  • New York, NY · Member since 2012 · 17 posts · 3 votes
    14y
    Originally posted by Jon Holdman:
    Go to your nearest library. Choose any three books on real estate investing. Try to choose books with different slants, e.g., a book on flipping, one on rentals, and a general one. Read them. Its not just the terms you need to learn, but the overall business of real estate. You won't get that out of a glossary.

    Good advice, thanks Jon

  • New York, NY · Member since 2012 · 17 posts · 3 votes
    14y
    Originally posted by Brian Burke:
    Lathan,

    I started when I was your age and I didn't know squat about real estate. The problem is that you don't even know what you don't know. You can't read a "how to walk" book and then start walking. You take a step, fall, get back up, and try again. You've just got to get yourself out there and learn all that you can one piece at a time. Sure, you will make mistakes, but remember that good judgment comes from experience, and experience comes from bad judgment. You move ahead in this business by expanding your comfort zone, not by knowing everything before you even dip your toe in the water.

    Yea, the more I wait, the more I realize that there isn't going to be a perfect time to jump in to this business knowing everything. Thanks for the advice Brian. I'm definitely taking it to heart.

  • Joshua D.Pro Member
    BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
    14y

    Lathan Cram - As terms or ANY other questions come up, just jump on the forums and ask us. We'll be happy to help you.

  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    14y

    Absolutely, don't be shy, jump in and ask what those letters mean!

    I'd suggest you get a college text book, for RE 101, Principles of Real Estate, before you start looking at strategies, investor programs or systems. Another good book will be the text and workbook used at real estate license schools for Realtors.

    Another good source for real estate books is at your local Board of Realtors office. Ours sells all kinds of books, basic, advanced and even some guru stuff. They usully have lots of stuff they will sell to non-members. Good luck

  • Investor · El Paso/Socorro, TX · Member since 2012 · 365 posts · 75 votes
    14y

    I own 4 rentals and just this week learned that PITI is
    Payment
    Interest
    Taxes
    Insurance
    Lol (not a real estate term) :-)

  • Real Estate Investor · chicago, IL · Member since 2012 · 1k+ posts · 231 votes
    14y

    go to your library & get real estate investing for dummies by eric tyson. he's awesome. then, get rental management for dummies. these are the best books to learn; ignore all the others.

    also, 1 more, before you even start is personal finance for dummies. if you put $10/week into a roth ira in your 20's you'll be a millionaire when you retire. a lot easier than landlording.

  • Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
    14y

    If you're hung up on some of the abbreviations, you can check out this page:

    http://www.biggerpockets.com/abbrev.html

  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    14y
    Originally posted by Charles Morgan:
    I own 4 rentals and just this week learned that PITI is
    Payment
    Interest
    Taxes
    Insurance
    Lol (not a real estate term) :-)

    Actually, its Principle, interest, taxes, and insurance. :-).

  • Investor · El Paso/Socorro, TX · Member since 2012 · 365 posts · 75 votes
    14y

    Geez, just when I thought I was getting it :-)

  • Investor · El Paso/Socorro, TX · Member since 2012 · 365 posts · 75 votes
    14y

    Marc Freislinger thank you for the link to abbreviations, and thank you BiggerPockets. I am forwarding that to several people!

  • New York, NY · Member since 2012 · 17 posts · 3 votes
    14y
    Originally posted by Charles Morgan:
    I own 4 rentals and just this week learned that PITI is
    Payment
    Interest
    Taxes
    Insurance
    Lol (not a real estate term) :-)

    Funny you say that, as it was one of the acronyms I kept seeing lol.

  • New York, NY · Member since 2012 · 17 posts · 3 votes
    14y
    Originally posted by Marc Freislinger:
    If you're hung up on some of the abbreviations, you can check out this page:

    http://www.biggerpockets.com/abbrev.html

    Thank you, this is helpful.

  • New York, NY · Member since 2012 · 17 posts · 3 votes
    14y
    Originally posted by Scott Williamson:
    go to your library & get real estate investing for dummies by eric tyson. he's awesome. then, get rental management for dummies. these are the best books to learn; ignore all the others.

    also, 1 more, before you even start is personal finance for dummies. if you put $10/week into a roth ira in your 20's you'll be a millionaire when you retire. a lot easier than landlording.

    I will go to my towns excuse for a library today or tomorrow and see if they have it. By the way, did you mean "property management for dummies"? If not, who is "rental management for dummies" by? Thanks for the recommendations.

  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    14y

    Lathan Cram Don't stress out over trying to learn every real estate term in the dictionary! If you are on a post, and don't understand something ask if someone can explain what it means. No matter how many years we do this, we still have things we can learn from other people in different specialities, etc. Most people are very helpful.

  • Investor · Hampton Bays, NY · Member since 2009 · 907 posts · 258 votes
    14y

    Lathan Cram all good advice, I am still puzzled when I see some abbreviation even those on Face book. I just ask what they mean when necessary. You will be respected if you speak your mind and not be afraid to ask when you do not know something. Keep reading posts on BP and you will quickly learn the language. Ask question and you will find this is a great place to get honest answers form people who are here to learn and help. This is important because when you go to many who are experts they may give accurate advice but often it is slanted to get you to buy something. The vast majority of our members have no ax to grind and those who are selling something are up front about it.

  • Member since 2013 · 67 posts · 4 votes
    13y

    These all sound like great suggestions.

  • Member since 2013 · 67 posts · 4 votes
    13y
    Originally posted by Curt Davis:
    Go get yourself a copy of " Dictionary of Real Estate Terms " 6th Edition. Its a blue colored book. Its a great book that will help you learn the lingo and much more very quickly.

    Curt, you suggested the 6th edition, but there is now an 8th edition that is more up to date and very inexpensive. Would you suggest it?

  • Chandler, AZ · Member since 2013 · 113 posts · 25 votes
    13y
    Originally posted by Brian Burke:

    good judgment comes from experience, and experience comes from bad judgment

    This is got to be my quote of the week, and it makes perfect sense.

  • Orlando, FL · Member since 2013 · 165 posts · 62 votes
    13y

    Latham
    You don't need to read a book or buy a real estate dictionary. You don't need to know all the lingo. Whenever someone that you are talking to uses a word that you don't know what it means, just ask them what it means.

    When Mr. Big Shot investor says," This property will give you a 12% ROI" Just ask him what is ROI? How do you compute that? People love to explain things. As you learn what you need to know, you will, at the same time, cause the people to like you better. It will cause them to believe that they are smarter than you. That is good if you are buying from them. It is a phenomenon. The better they like you, the more likely they are to get the price and terms right for you.

    Start looking at houses. Ask the seller or the Realtor anything that you need to know. You will learn fast. My favorite question is how do you know that? When people say things like this house comps out at $100,000 ask them"What does comps out mean?". How do you know what it comps out at?

    Just ask questions. Don't worry about looking foolish. You are not applying for a job

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