Real Estate Investing Glossary

Analysis

Distress Score

A 1-5 rating assigned to a property based on AI visual analysis and Census data, indicating the level of physical and economic distress.

Census Data (in Real Estate Investing)

Demographic and economic statistics from the US Census Bureau used to evaluate neighborhood conditions and investment potential.

Deal Flow

Off-Market Deal

A property transaction that occurs without the property being listed on the MLS or publicly marketed for sale.

Investment Strategies

Fix and Flip

An investment strategy where an investor buys a distressed property, renovates it, and sells it for a profit.

Wholesale Real Estate

A strategy where an investor contracts a distressed property and assigns the contract to an end buyer for a fee, without taking ownership.

Buy and Hold

An investment strategy where an investor purchases a property, renovates it, and holds it as a rental for long-term income and appreciation.

Assignment Fee

The profit a wholesaler earns by assigning their purchase contract on a distressed property to an end buyer.

Investor Tools

Skip Trace

The process of finding a property owner's contact information, including phone numbers, emails, and mailing addresses.

Lead Generation

Driving for Dollars

Physically driving through neighborhoods to visually identify distressed properties, the traditional method that AI-powered tools now automate.

Market Indicators

Vacancy Rate

The percentage of residential units in an area that are unoccupied, indicating potential neighborhood distress or opportunity.

Marketing

Direct Mail Marketing (Real Estate)

Sending physical letters or postcards to property owners to generate off-market deal leads.

Property Issues

Code Violation

A property condition that violates local building, housing, or municipal codes, often resulting in fines and indicating owner distress.

Tax Lien

A legal claim placed on a property by the government for unpaid property taxes, indicating financial distress and potential acquisition opportunity.

Property Types

Distressed Property

A property in poor physical condition or under financial pressure, often sold below market value.

Seller Types

Absentee Owner

A property owner who does not live at or near the property they own, often indicating reduced attachment and higher motivation to sell.

Motivated Seller

A property owner who has strong reasons to sell quickly, often willing to accept below-market offers.

Technology

AI Property Analysis

Automated evaluation of property condition using artificial intelligence to analyze street-level imagery.