Investing Terms & Definitions Pt: 1
If you are novice to investing there are a few terms you should come to know. Instead of going through the school of hard knocks we'll go over a few.
Here at PF Solutions we often use a 1003 for our private money and hard money deals. Most often confuse this with traditional lending but this helps us faster determine your needs for funding as well as which one our lenders are best suited for you.
1003: 1003: Government Application Stating Income, Assets, Balances And Debt. Also Shows Employment History.
ABSORPTION RATE: Estimate Of Expected Annual Sales Or New Occupancy Of A Particular Type Of Land Use. Ex. A Total Of 2,000 Homes Are Available For Sale. Each Month 200 Homes Have Been Sold. 200/2,000 = 10% Monthly Absorption Rate
ADV: After Development Value
ADV: is used in the construction industry similar to but not to be confused with ARV.
AITD: All Inclusive Trust Deed. Wrap Around Mortgage. Taking Multiple Properties And Bundling Them Together. Ex:Taking Two Loans And Wrapping Together As One New Loan.