Wholesaling course glossary: 74 terms
Every trade word from the course in plain English, A to Z. Each links to the lesson that teaches it.
A
- Administrative fine
- A money penalty imposed by an agency after a hearing; for licensees it is up to $2,500 for each separate offense. The license line in Colorado
- After-repair value (ARV)
- What a house should sell for once it has been fixed up. Cash buyers and the spread
- And/or assigns
- Words after the buyer's name signaling that the buyer may pass the contract to another person. The contract: assignment, deposits and deadlines
- Artificial or prerecorded voice
- A robot or recorded voice used to deliver a call message. Calling, texting and keeping records
- Assignee
- The person who receives (takes over) a contract in an assignment. The contract: assignment, deposits and deadlines
- Assignment
- Handing your rights under a purchase contract to another person, who then closes in your place. What wholesaling is
- Assignment
- Selling your right to buy a house under a contract to someone else, so one deed goes from seller to end buyer. Double closings and what they cost
- Assignment fee
- The money the wholesaler is paid when the end buyer takes over the contract. What wholesaling is
- Assignor
- The person who hands over their rights under a contract in an assignment. The contract: assignment, deposits and deadlines
- Associate
- A partner, affiliate, agent or any other person working in association with an equity purchaser or foreclosure consultant. Honesty with sellers and the Foreclosure Protection Act
- Automatic telephone dialing system
- Equipment able to store or produce numbers with a random or sequential number generator and dial them (47 U.S.C. 227(a)(1)). Calling, texting and keeping records
C
- Cash buyer
- An investor who pays for a house without a bank loan, so can close quickly. What wholesaling is
- Cash buyer
- A buyer who purchases without a bank loan on the purchase and can close quickly. Cash buyers and the spread
- Colorado no-call list
- A database of Colorado subscribers who object to telephone solicitations, run under the public utilities commission. Calling, texting and keeping records
- Commission (real estate)
- The state real estate commission that issues licenses and disciplines brokers. The license line in Colorado
- Comparables (comps)
- Recent sales of similar nearby homes used to estimate value. Cash buyers and the spread
- Compensation
- Pay of any kind; the law says 'anything of value', and intending to be paid is enough. The license line in Colorado
- Conforming list broker
- A seller of calling lists that removes numbers on the Colorado no-call list at least every thirty days. Calling, texting and keeping records
- Consideration
- What is given in exchange for the property, which the statute measures to include liens and required charges. Double closings and what they cost
- Constructive knowledge
- Knowledge the law treats you as having because you should have known. Honesty with sellers and the Foreclosure Protection Act
- Contingency
- A condition that must be met for the deal to go forward, such as a satisfactory inspection. The contract: assignment, deposits and deadlines
D
- Deceptive trade practice
- A misleading business act that Colorado law lists as unlawful, including failing to disclose known material information to induce a deal. The contract: assignment, deposits and deadlines
- Deceptive trade practice
- A misleading business act that Colorado law lists as unlawful, such as a false statement about affiliation or a known, material fact left out to induce a deal. Honesty with sellers and the Foreclosure Protection Act
- Deed
- The signed paper that moves title (ownership) from one person to another. Double closings and what they cost
- Default
- Breaking the contract, for example by failing to close; the contract says what follows. The contract: assignment, deposits and deadlines
- Documentary fee
- A Colorado fee charged when a deed is recorded, one cent for each $100 of the price paid. What wholesaling is
- Documentary fee
- A county fee charged when a deed is recorded, measured by the deed's consideration (C.R.S. 39-13-102). Double closings and what they cost
- Double close
- Buying the house yourself and reselling it right away, so there are two sales and two deeds. What wholesaling is
- Double closing
- Two purchases back to back: you buy from the seller, then sell to your end buyer, with two deeds recorded. Double closings and what they cost
- Due-diligence period
- A window in which the buyer may investigate the house, title and paperwork and, if the contract allows, end the deal and recover the deposit. The contract: assignment, deposits and deadlines
E
- Earnest money
- A deposit that shows the buyer is serious, held by a neutral third party until closing or until the contract says who gets it. The contract: assignment, deposits and deadlines
- Employing broker
- A licensed broker shown in commission records as employing another broker. The license line in Colorado
- Equitable interest
- A right to receive ownership in the future that a signed purchase contract generally gives the buyer, before the deed moves. What wholesaling is
- Equity purchaser
- A person who acquires title to a residence in foreclosure, other than someone buying to live there and the other excluded buyers. Honesty with sellers and the Foreclosure Protection Act
- Escrow
- A neutral party, usually a title company, that holds money and papers until a closing is complete. Double closings and what they cost
- Established business relationship
- A voluntary two-way relationship formed before the contact, not ended, and current or within the past 18 months in Colorado. Calling, texting and keeping records
- Exemption
- A listed situation where the broker definition 'does not apply' to a person. The license line in Colorado
F
- First screen
- A quick rule used only to skip houses that are clearly far apart, not to set a price. Cash buyers and the spread
- Flip
- Buying a house, fixing it up, and reselling it. Cash buyers and the spread
- Foreclosure consultant
- A person who takes no interest in the home but offers, for pay, a service said to stop, delay or soften a foreclosure. Honesty with sellers and the Foreclosure Protection Act
H
- Holding costs
- What it costs to own a house while work and sale happen, such as taxes, insurance, utilities and interest. Cash buyers and the spread
- Home owner (under the Act)
- The owner of a dwelling who lives in it as a principal residence, including a buyer under a contract for deed. Honesty with sellers and the Foreclosure Protection Act
I
- Interest in real estate
- A right connected to a property, such as ownership, an option or other rights, not only the deed itself. The license line in Colorado
L
- Lien
- A legal claim on a property for a debt, such as a mortgage. Double closings and what they cost
- LLC
- Limited liability company: a business entity formed with the state, often used to separate business and personal liability. Calling, texting and keeping records
M
- Material fact
- A fact that would matter to a reasonable person's decision. Honesty with sellers and the Foreclosure Protection Act
- Maximum offer
- The most a buyer can pay and still make the profit they need. Cash buyers and the spread
N
- National do-not-call database
- A single list of residential numbers of people who object to solicitations that the federal statute lets the FCC require. Calling, texting and keeping records
- Natural person
- A human being, as opposed to a company. The license line in Colorado
- Notice of cancellation
- The form that tells the owner how and until when the contract can be cancelled. Honesty with sellers and the Foreclosure Protection Act
O
- Option
- A right, usually bought, to buy a property at a set price within a set time. The license line in Colorado
- Option dealer
- Anyone who takes an option to buy real property with the intent to sell or transfer it to others; the broker license law names this role. What wholesaling is
- Option dealer
- A person who takes an option on real property with the intent to sell or pass it on to others, whether or not the option is in that person's name. The license line in Colorado
P
- Principal
- A person dealing for themselves, not as the agent of someone else. The license line in Colorado
- Prior express consent
- The person clearly agreed you may contact them in that way; keep proof. Calling, texting and keeping records
- Promulgate
- To publish officially for use, as the real estate commission does with some standard forms. The contract: assignment, deposits and deadlines
- Purchase contract
- A written agreement in which the seller agrees to sell and the buyer agrees to buy a described house at a stated price. The contract: assignment, deposits and deadlines
Q
- Quiet period
- The time before the owner's cancellation right ends, when the equity purchaser may not take a deed, record, resell or pay. Honesty with sellers and the Foreclosure Protection Act
R
- Real estate broker
- Anyone who, for pay or the intention of being paid, does listed acts such as selling, offering to sell or negotiating real estate or an interest in it. The license line in Colorado
- Recklessly
- With reckless disregard for whether a statement is true or false. Honesty with sellers and the Foreclosure Protection Act
- Release
- A signed statement that ends a person's responsibility under the contract. The contract: assignment, deposits and deadlines
- Residence in foreclosure
- An owner-occupied principal residence with a residential mortgage loan at least thirty days delinquent or in default. Honesty with sellers and the Foreclosure Protection Act
S
- Scrubbing a list
- Checking a call list against do-not-call lists and removing matching numbers before you contact anyone. Calling, texting and keeping records
- Selling costs
- What the buyer pays to sell the finished house, such as agent fees and closing costs. Cash buyers and the spread
- Spread
- The gap between the price the seller accepts and the price the end buyer pays. What wholesaling is
- Spread
- The gap between what you pay and what your buyer pays. Double closings and what they cost
- Spread
- The gap between what you pay the seller and what your buyer pays you. Cash buyers and the spread
T
- Telephone solicitation
- A call, fax or message, including a text in Colorado, meant to encourage buying, renting or investing in property, goods or services. Calling, texting and keeping records
- Title
- Legal ownership of a property; it moves from seller to buyer by a recorded deed. What wholesaling is
- Title insurance
- A policy that protects the owner or lender if a hidden ownership problem appears later. Double closings and what they cost
- Transaction funding
- A very short loan that pays for the first closing using money that arrives at the second closing. Double closings and what they cost
- Transactional funding
- A very short loan, often a few hours, that supplies the money for the first purchase in a double close. What wholesaling is
U
- Unconscionable
- Involving bad-faith overreaching with terms unreasonably favorable to the stronger party. Honesty with sellers and the Foreclosure Protection Act
W
- Wholesaler
- A person who puts a house under contract and then sells the deal to another buyer for a higher price. What wholesaling is