REAL ESTATE TERMS YOU MAY WANT TO KNOW WHEN BUYING OR SELLING A HOME IN THE ORLANDO AREA
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Get To Know The “0-9’s” Of Real Estate
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Stands for “12-month average Treasury index” and is a 12-month average of the one-year U.S. Treasury rates used for one form of a monthly adjustable mortgage. Since it is based on historical experience, this index lags current interest rates.
An exchange which is officially called an Internal Revenue Code 1031 Exchange which allows an owner to trade one like kind property for another under very specific guidelines and defer paying income tax. See IRS Information Here On 1031 Exchanges
You should know and understand all the key players needed to perform a successful exchange. There is a strict timeline on the process and requires an intermediary. MORE Realty Services can help to provide the necessary brokering of properties to maintain them at “arms length”. Contact us today for more information.
FHA’s single family program which provides mortgage insurance to lenders to protect against the borrower defaulting; 203(b) is used to finance the purchase of new or existing one to four family housing; 203(b) insured loans are known for requiring a low down payment, flexible qualifying guidelines, limited fees, and a limit on maximum loan amount. See Approved Lenders List
this FHA mortgage insurance program enables homebuyers to finance both the purchase of a house and the cost of its rehabilitation through a single mortgage loan. See Approved Lenders List
This type of loan allows for a First Lien of 80%, a Second Lien of 10% and a Down Payment of 10%. Sometimes the Down Payment portion may be gifted. See Approved Lenders List
Most people mistakenly believe that their 401(k) must be invested in bank CDs, the stock market, or mutual funds. Few Investors realize that the IRS has always permitted real estate to be held inside 401(k) retirement accounts. Investments in real estate with a Solo 401(k) are fully permissible under the Employee Retirement Income Security Act of 1974 (ERISA). IRS rules permit you to engage in almost any type of real estate investment, aside generally from any investment involving a disqualified person.
Income or gains generated by a 401(k) Plan generate tax-deferred/tax-free profits. Using a Solo 401(k) Plan to purchase real estate allows the 401(k) to earn tax-free income/gains and pay taxes at a future date, rather than in the year the investment produces income.
Reportable Real Estate
Generally, you are required to report a transaction that consists in whole or in part of the sale or exchange for money, indebtedness, property, or services of any present or future ownership interest in any of the following:
See The IRS Info HERE.
Represents the number of square feet in an acre of land. A quarter acre consists of 10,890 s.f., a half acre consists of 21,780 s.f. and three quarters consists of 32,670 s.f. This is a good measurement to know when comparing land values based on the actual cost per square foot.
That’s the number you call when you are ready to buy or sell a home in the Orlando area. MORE Realty Services is at the ready to assist you in reaching your real estate goals. That’s 1-855-407-SOLD … 1-855-407-7653
Keep in mind that this is by no means a complete list of terms, but it does highlight most of the more common terms used in the industry and is a constant work in progress as time passes.
If you have any questions whatsoever regarding the sale or purchase of a property in the Central Florida area please feel free to call or write me direct. My business hours are Monday thru Friday 9am – 6pm.
Thank you for choosing MORE Realty Services LLC as an information source for your Central Florida real estate needs.
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