Grow your real estate investing business with the most competitive and transparent private lender for bridge loans (hard money, fix & flip, rehab, ground up construction), DSCR rental loans.

Private Lender for DSCR Loans and Fix & Flip Loans | OfferMarket

Private Lender for DSCR Loans and Fix & Flip Loans

An individual training to become a licensed real estate appraiser who has completed at least 75 hours of education.

 

## Related terms
- [Certified General Appraiser](https://www.offermarket.us/real-estate-glossary/certified-general-appraiser)
- [Certified Residential Appraiser](https://www.offermarket.us/real-estate-glossary/certified-residential-appraiser)
- [Licensed Residential Appraiser](https://www.offermarket.us/real-estate-glossary/licensed-residential-appraiser)

A Trainee Appraiser is an individual training to become a licensed real estate appraiser who has completed at least 75 hours of education.

Trainee Appraiser - Real Estate Glossary - OfferMarket

What is a Trainee Appraiser in real estate?

A real estate appraisal is the process of developing an opinion of value for real property. Appraisals are performed by licensed real estate appraisers.

 

Appraisals differ from Broker Price Opinion (BPO) and Real Estate Valuation in that appraisals can only be performed by licensed real estate appraisers.

 

You can receive a [free real estate valuation estimate](https://www.offermarket.us/tools/free-real-estate-valuation), compliments of OfferMarket.

Real estate appraisal is the process of developing an opinion of value for real property. Appraisals are performed by licensed real estate appraisers.

Appraisal - Real Estate Glossary - OfferMarket

What is a real estate Appraisal?

An appraiser is a licensed real estate professional who has completed at least 150 hours of courses and accumulated 1,000 hours of experience. No college degree is required.


 

## Related terms
- [Certified General Appraiser](https://www.offermarket.us/real-estate-glossary/certified-general-appraiser)
- [Certified Residential Appraiser](https://www.offermarket.us/real-estate-glossary/certified-residential-appraiser)
- [Trainee Appraiser](https://www.offermarket.us/real-estate-glossary/trainee-appraiser)

A Licensed Residential Appraiser is a licensed real estate professional who has completed at least 150 hours of courses and accumulated 1,000 hours of experience. No college degree is required.

Licensed Residential Appraiser - Real Estate Glossary - OfferMarket

What is a Licensed Residential Appraiser?

#### What does rehab mean?

 

In the real estate lingo, to "rehab" means to rehabilitate or renovate a house. [Fix and flip](https://www.offermarket.us/real-estate-glossary/fix-and-flip) and rental property investors commonly purchase properties that require anywhere from minor to major rehab work in order to cost effectively build equity value in a property.

 

#### What is an example of a rehab project?

 

Let's say you buy a home for $100,000 that, based on [comps](https://www.offermarket.us/real-estate-glossary/comps), will be worth $300,000 if you invest in repairs and cosmetic improvements. The question now is how much will it cost to rehab this property? See the sections below to learn how to estimate your rehab budget.

 

If your rehab budget is $100,000, then your total investment (not including financing and closing costs) is $200,000. If your goal is to [BRRR](https://www.offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) the property (buy, rehab, rent, refinance), then you are looking at pulling out $225,000 if you refinance at 75% LTV. 

 

In this example you will end up with 25% equity in a cash flowing rental property and as much as $25,000 more than you started with to use on your next deal. This is why many rental property investors focus on [cash on cash return](https://www.offermarket.us/real-estate-glossary/cash-on-cash-return) as their primary deal evaluation metric.

 

#### How to estimate rehab budgets?

 

To accurately estimate a rehab budget, you must carefully assess all of the work required to bring a property to its target after repair value ([ARV](https://www.offermarket.us/real-estate-glossary/arv-after-repair-value)). 

 

#### How to keep your rehab budget low?

 

To keep your rehab budget low, you want to eliminate unnecessary costs. For example, if you have enough time to manage the project yourself, then you do not need a general [contractor](https://offermarket.us/real-estate-glossary/general-contractor). General contractors typically take 10 - 15% of the total project value. So if you are quoted at $100,000 for a rehab project, you can assume your general contractor is making $10,000 - $15,000.

 

Another way to drive down your rehab costs is to make your suppliers (sub contractors, materials) submit competitive bids. This will keep them honest and bring out the best value they are willing to offer. We recommend asking for bids to show, line item by line item, exactly how the component costs add up to the total quote. For a kitchen rehab, this means you will want to know exactly how much the [contractor](https://offermarket.us/real-estate-glossary/general-contractor) or supplier is budgeting for counter tops material (price per square foot) and labor (installation).

 

A final way to keep your rehab budget under control is to understand the cost basis for the work you are sub contracting. If you understand material costs and cost of labor for each component of your project, then you will know what to budget for each component and you will know when a [contractor](https://offermarket.us/real-estate-glossary/general-contractor) might be overcharging or taking advantage of you. There is often an "investor" price and a "retail" price, and the difference can be considerable.

In the real estate world, to rehab means to rehabilitate or renovate a house. Learn more about rehabbing on OfferMarket.

Rehab meaning real estate glossary definition

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Rehab - Real Estate Glossary - OfferMarket

What is Rehab in real estate?

#### What are comps?

 

Comps are a real estate valuation method using comparable properties as the basis for estimating the value of a subject property. Running comps is a skill that anyone can learn and a skill that improves with practice and repetition. Producing accurate and conservative comps is extremely important to avoid real estate investments that do not provide a satisfactory return on investment.

 

#### How to run comps?

 

To run comps, you should find 3 to 5 properties within a 1 mile or less radius that have sold within the last 6 months and match the profile of the subject property you are valuing (i.e. year built, number of bedrooms, number of bathrooms, sq. ft., lot size, stories). If these constraints are not practical, then you can expand your radius and timeline.

 

Next you add or subtract value from your subject property based on objective differences between the subject and the comparable property. For example, remove $10,000 if the comparable property has a new roof and the subject property needs a roof replacement.

 

#### How accurate are Zillow and Redfin estimates?

 

In some cases Zillow's Zestimate and Redfin's estimated house values are accurate but they do not have enough knowledge of the property condition to provide an accurate or relevant estimate in many cases. These estimates are especially inaccurate for houses that were built more than 30 years ago. You will notice these estimates are more reliable for communities built recently by a common builder with similar floor plans and lot size.

Comps are a real estate valuation method using comparable properties as the basis for estimating the value of a subject property.

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Comps - Real Estate Glossary - OfferMarket

What is Comps in real estate?

Fix and flip is a real estate term to describe the activity of buying a house, rehabbing it, and selling it for a profit.

 

#### Let's look at an example:

 

House A was in poor condition and available for sale on OfferMarket for significantly below it's after repair value ([ARV](https://www.offermarket.us/real-estate-glossary/arv-after-repair-value)). Joe the flipper bought the house for $100,000 because he knew that if he invested an additional $100,000 into repairs, he would be able to sell it for $300,000 based on comparable homes ("comps") in the neighborhood. Because he sold his completed fix and flip on OfferMarket, he avoided real estate agent commissions and received a competitive price because he made buyers compete with an [auction listing](https://www.offermarket.us/real-estate-auctions). Joe made $100,000 in gross profit and over $50,000 in profit net of short term capital gains tax, closing costs and interested owed to his [private lender](https://www.offermarket.us/real-estate-glossary/private-lender).

Fix and flip is a real estate term to describe the activity of buying a house, rehabbing it, and selling it for a profit.