Buying a property is simple but come with many moving parts. There’s a process when submitting offers, negotiating terms and being awarded a contract. The steps to closing can be overwhelming. The Title Exam and Settlement Statements must be reviewed, and HUD Statements circulated and approved. All parties are required to be informed and be on the same page. When acquiring a property, it is important to have the right purchase agreement with the right terms within. Relotz Acquisition Services help you make the best decision.

Commonly called the ARV. It is the estimated value of the property once the Rehab is completed. ARV is commonly used by Fix and Flip Investors who purchase, renovate, and sell properties within 1 year. Relotz bases this upon similar properties (Comparable) that have been sold in the last six months in a radius of ½ mile of this property.

This is a standard 3% Fee of the ARV (Estimated After Repair Value) paid to the Real Estate Agent upon the sale of the Property.

A Real Estate Appraisal is the process of developing an opinion of value of the Property to be acquired. Lenders require appraisals since every property is unique.

The Investor who has applied through the Relotz registration process and has met the criteria necessary to acquire Property for Fixing and Flipping.

Purchasing a Property involves a detailed process before it becomes binding. The Seller and buyer agree to a price and other Terms and Conditions. One party will sign the contract and when the second party signs it is binding at that time.

An official document issued by the local government agency that allows Relotz to proceed with a construction or remodeling project on your property. The Building Permit verifies that the Project complies with local standards for land use, zoning, and construction.

This is the form that a potential Relotz Client completes online at the Relotz website. The Registration includes information including, Organization, Type of Business, Owner, Experience, and Background and Financial information. This form must be completed before Relotz can offer any services.

This is the Approximate Monthly Payment of Interest to the Lender times three months. Three months is the average length of a Relotz Rehab Project. Our goal is to reduce the number of months of Carrying Cost for our Clients.

Cash to close is the Closing Costs that a Buyer pays at the Loan Closing. Closing Costs include Appraisal Fees, Title Insurance, Attorney Fees, Taxes, Lending Costs, Down Payment and Escrow funds.

A city building inspector monitors the construction process to ensure compliance with local ordinances, zoning regulations and approves changes to the original Scope of Work.

The date when the title to the property is transferred (conveyed) to the buyer. Closing costs are fees paid at this time

A Closing Attorney is responsible for organizing, carrying out, and finalizing the Real Estate closings. The Closing happens in one meeting and the Buyer takes ownership of the property.

The construction budget is the amount of money allotted for the Fix and Flip Project. Construction budgets are developed to determine the costs for the renovation.

The dedicated Relotz Professionals working together with our Client and the Lender to ensure that the loan process flows quickly and smoothly.

This is the official written document which transfers title in the property to another person

Demographics is based upon government data available for a population area reflecting factors such as age, race, income, sex and many other factors.

The fee charged a fee for services, by the Developer, as a percentage of the development cost. This fee is referred to sometimes as a Development Fee.

This is a payment that the Lender usually 10% to 15% of the Purchase Price of the Property.

As work is completed on the Project, a Draw Request (reimbursement) is periodically submitted to the Lender with receipts for immediate payment.

A process to make certain that all aspects of the Property being purchased is in order and occurs immediately after the acceptance of a Purchase of the Property. This means taking caution in getting a Fair Deal, Reviewing Documents, Procuring Financing, Title Insurance, Property Inspection and Homeowners’ Association details before the Property is purchased. The Client needs to have this done before using the Relotz services. This does not apply if Relotz owns the Property as due diligence has already been taken care of in all properties offered for resale.

This is a Security Deposit that is made on the Property to demonstrate the Buyer’s intent to complete the transaction.

The Lender determines an Escrow amount which is money held by a third party (an Attorney) on behalf of the Buyer and Seller.

Our lending partners offer creative financing with up to 12 month deferred payments. We pride ourselves on offering the best lending products to acquire, rehab and flip or hold real estate. We have created systematic processes to evolve in an ever-changing industry. We manage loan submissions from intake to closing. Our credit teams are constantly communicating with underwriters to ensure that each borrower meets credit requirements before an application is submitted. Our method is simple but powerful. We utilize a straightforward approach to set clear expectations for a successful funding. The steps in the process includes Intake > Loan Submission > Review > Approval > Clear to Close > Funding.

Difference between the index a lender uses to compute adjustable rate mortgage (ARM) rates and the interest rate the lender charges the borrower. The ARM interest rate is the sum of the total of the index and the margin???????

The methodology of buying Property low and selling it high. This process typically involves buying a house that requires repair and renovating it before reselling it for a profit thus, Fix and Flip.

The HUD Statement is a standardized mortgage lending form on which the Closing Agent itemize all charges to the buyer and seller in a Property transaction.

A proprietary Relotz spreadsheet application that shows a potential Investor important numbers like ARV, Purchase Price, Estimated Rehab Cost and Acquisition Expense including the Estimated Gross Profit and Net Profits from the investment for a specific property.

This is the contract that gives the right to a Real Estate Agent or to handle the sale of the property and to receive a commission for their services.

The fee that the Lender charges for their services of lending money on the Property.

Project management is crucial for success. Relotz Team Members facilitate the Onsite Inspections, create Expense Reports, Project and Labor Management, Punch Out and Stage and List the Properties for Sale.

The Loan Amount (LA) times 12% (average) Interest divided by 12 Months.

Estimated Net Profits less on the Project minus the Relotz Project Management Fee.

A typical home inspection will be conducted by a Relotz Team Member who will examine the major systems of the house, foundation, plumbing, electrical, HVAC, siding, roof, etc. A Certified Home Inspector can be engaged at the request of the Investor.

Relotz is in the Atlanta, Georgia area and welcomes Investors from other geographical areas. Our simple start-to-finish plan takes the worry out of the complicated process.

When planning a project, it seems to never go as planned. It is important to have a plan created with experience and expertise to execute it from beginning to end. Relotz works with engineers and architects to plan and permit projects. We create real solutions for difficult challenges. We make sure every project has adequate Team Members and crews to perform the Scope of Work. Planning is critical to avoid unnecessary expenses and stoppages in work. Relotz performs the Scope of Work, Cost to Rehab, Cost of Material and Labor, Project Timeline, Permitting and Zoning to make your investment adventure worry free.

A transaction cost associated with closing a real estate deal.

Relotz embraces the process of seeing a good plan to completion. Every step should be a step forward in the right direction. Keeping track of labor and materials can be a hassle and not knowing your costs becomes a nightmare. It’s tricky to determine labor cost when hiring someone for the first time and unsure about their quality of work or experience. Everyone and everything must be managed. Project Management is crucial for success. Don’t let your project fail to inadequate team members or poor management. It’s better to not start than to start and not finish. We handle Onsite Inspections, create Expense Reports, Project and Labor Management, Punch Out and Stage and List the Properties for Sale.

Real estate development is a multi-step process that can be complicated, lengthy and risky from the planning stage through construction and finally to completion. There are plenty of obstacles that can pop up along the way. Relotz provides their Clients with a detailed Project Timeline so that all parties in the process are informed of what happens and when.

Once an Investor completes the Buyer Registration process with Relotz, access is granted to our listing of vetted Properties available for sale. Our vetted Properties have undergone extensive scrutiny for the prospect of the most favorable ROI for the Investor. We welcome Investors with their own Properties and will provide the remaining services necessary to start and complete the Project.

A property investment company is one that buys properties in order to resell them at a profit.

“Relotz Term” Charlie – what is a good definition for this?

Also called the Purchase Contract, which is the result of the Purchasing process that results in a contract for the Investor to buy the Property.

The Purchase Price refers to the total selling price of a property which includes the down payment and the principal amount of the loan.

The entire process from beginning to the end which includes locating the Property, Due Diligence, Scope of Work and Preliminary Floor Plans and ending with the result of generating a Buyer Contract.

This is the estimated cost to renovate the purchased Property. This number is developed by a Relotz Project Manager and can be plus or minus 5% of the estimate.

The responsibility of the Project Manager is to ensure for an on-time and on-budget result. The role of a project manager during real estate and construction projects is to ensure the successful completion of the project is on time and within budget. For this service Relotz charges a ____ fee ?

Fix-and-flip is the strategy of purchasing a property, renovating it, then selling it at a profit. This term applies to making relatively minor repairs to a Property to sell as opposed to a larger scale renovation.

This is a measure of how much money is made on an investment as a percentage of the total investment cost.

The Scope of Work defines the parameters of the renovation project to take it from the condition at the time of acquisition through the condition prior to sale. The Scope of Work is a different for each and is documented clearly, with a Schedule of Completion by the Relotz Project Manager.

Seller Expenses are the Agent Commission and Carrying Costs (monthly interest payments times the number of months) at the time of Closing.

A settlement statement is a document that summarizes all the fees and charges that a Buyer and Lender have leading up to the settlement process of the Lending transaction.

Home staging is the preparation of a Property for sale. The staging is intended to make a home appealing as possible potential Buyers.

Preliminary and detailed studies are an essential part of Real Estate Investing. Relotz Studies determine the true value of real estate which is most vital for Investors and Lenders. We compare properties for an after repair value while estimating a cost to renovate with the Scope of Work. A series of proprietary formulas are used to ensure that the Investment is viable and profitable. We use multiple tools and a bit of common sense to determine a Purchase Price and a price to sell. These studies are necessary and without them the risk of a financial loss likely. Relotz determines the Current Market Value, ARV, identify Comparables, potential Gross and Net Profits, Cost of Financing and ROI.

Title examination is a close examination of all public records that affect the title to Property being purchased and includes the review of past deeds, wills, trusts to make certain that the title has passed correctly to each new owner over time.

Loan Origination Fee, plus Underwriting Fee, plus Processing Fee, plus Estimated Closing Costs equals the Total Lender Fees.

The Relotz document that describes what happens from the time a property is purchased until the Closing day.

The Underwriter determines how much risk the Lender is willing to accept on the Property purchase.

The process of buying Property low and selling it high. An Update Flip is the renovation required to bring an older Property up to modern standards prior to the Sale.

Vetting is the process of performing a background check on someone before offering them employment, conferring an award, or doing fact checking prior to making any decision. In addition, in intelligence gathering, assets are vetted to determine their usefulness.

The final inspection of a home by the Buyer before Closing to make certain that renovations have been completed before the Closing documents are signed.

The Relotz slogan that describes the process from Buying a Property at a deeply discounted price until it is Sold at a high profit for our Investor.