Investing in real estate is well-known as one of the most effective ways to increase your wealth. It also can have the added benefit of generating passive income, which allows you to clear out your daily schedule and pursue other passions.
Unfortunately, most people don't understand all the ways they can invest in real estate or even the lingo that's associated with the industry.
If this sounds like you, don't worry. I'm gonna give you a little crash course right now. Below you will find some initial info you'll want to know when considering your real estate strategy!
This is a document you as the buyer give to the seller, which expresses the amount you are offering to pay and the terms of your offer. The seller would sign this document and at that point, you would have a completed “purchase agreement.”
Your “deposit” or “earnest money” is an agreed-upon sum that you put down in order to secure the sales contract and open escrow. If you don't meet all the terms and deadlines set out in the purchase agreement, you may have to exit the sale and forfeit your deposit.
Title research is done to be sure the property is clear of any outstanding obligations and ready to be sold. A lien, for example, could be discovered during this process, and delay the finalization of the sale.