A lot of real estate investors talk in code. Do you ever get the feeling like we are talking a different language? Have no fear, REI Blogger is here to save the day so you too can learn to master the fine art of “investmentspeak.” We don’t have many of them but here are the most important ones to know.
LOA – A letter of authority is a written confirmation of a person’s rank, authority, or ability to enter into a legally binding contract, take a specific action, spend a specified sum, or to delegate his or her duties and powers.
LOI – Letter of intent is typically a one page offer a buyer submits. An LOI includes the offer price, discount desired, geographical preferences, capital available, POF contact person.
POF – Proof of funds is usually a bank statement or letter from the bank or title escrow attesting to available funds a buyer has.
MFA – Master fee agreement is used when reps are involved. It’s purpose is to insure the payment of fees a buyer pays to their reps.
BPO – Broker’s price opinion is an informal and unofficial appraisal of a property conducted by a broker or realtor without the use of a appraiser.
PA – Purchase agreement between the buyer and seller.
DD – Due diligence period a buyer has to review the assets before officially commiting to the purchase.
Did I forget any? Feel free to comment to add yours.
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Oh here’s another. .
du. …..desktop undewriter approval