Real Estate Wizzard Letter With N

Front 1

Negative Fraud

Back 1

Negative fraud is the act of purposely leaving out information you legally must disclose; or in plain terms lying through omission省略

Negative fraud occurs when a seller fails to disclose material facts, resulting in financial or personal damage to the property buyer.

Front 2

Negligence 不谨慎的

Back 2

According to the dictionary, negligence is the “failure to exercise the care that a reasonably prudent person would exercise in like circumstances.” In a legal sense, negligence is different from fraud in that it lacks intent. A real estate agent is fraudulent if they intentionally dupe or mislead a client.

Front 3

net listing

Back 3

A net listing is a type of listing in which an owner sets a certain amount of money that they want to receive from the sale of their home. The listing agent receives any amount of money that the property sells for that exceeds the set amount. A listing agent does not receive a commission for a net listing.

Front 4

Net operating income

Back 4

net operating income (NOI) is a real estate term representing a property's gross operating income, minus its operating expenses. Calculated annually, it is useful for estimating the revenue potential of an investment property.

Front 5

Negative amortization

Back 5

In plain word it means when your payments do not cover your interest and your debts goes up. Your debt goes up because your payment aren’t covering that interest.

For example, if the interest payment on a loan is $500, and the borrower only pays $400, then the $100 difference would be added to the loan's principal balance.

Front 6

1031 tax deferred exchange

Back 6

When you sale the property don’t touch the money take the money from this property and put it into another.

If you don’t touch the money you don’t have to pay the capital gain tax because you are reinvesting it and if you do this you have 45 days to identify a property and 180 days to close the deal.