Other Peoples Money Opm


Definition of "Other People's Money (OPM)"

Ed Herbst
  Keller Williams Classic Realty

The use of borrower funds by people or business to increase the return on an investment. Examples are a mortgage to purchase real estate and buying real estate stock on margin.


Search Real Estate Glossary

 

Related Real Estate Glossary terms

Swing Loan

"Same as term bridge loan: Short-term loan that is made in anticipation of permanent longer term loa ...

Compulsory Insurance

Coverage required by the laws of a particular state. For example, many states stipulate minimum amou ...

Stipulations

Conditions and terms agreed to in a contract. ...

Feasibility Study

Evaluation of a contemplated project or course of action, according to pre-establisher criteria to d ...

Forfeiture

Loss of property from nonfulfillment of some duty or condition. In some cases, forfeiture is require ...

Abandonment And Salvage

Legal status giving an insurance company all rights to an insured's property. The abandonment clause ...

Related Real Estate FAQ

What Is Flood Insurance?

Flood insurance is insurance that compensates for the physical property damage resulting from rising ...

What Is Comprehensive Homeowners Insurance?

Comprehensive is the most expensive type of homeowners insurance; it covers the most potential damag ...

What Is Hazard Insurance?

Hazard insurance is insurance coverage that compensates for physical damage to a property from natur ...

Do I Need Earthquake Insurance?

If you live in an Earthquake zone. Yes! Typically most homeowners insurance insurance coverage would ...

What Is A Loan Origination Fee?

A loan origination fee is a fee charged by the lender-usually 1 percent of the loan amount. ...

What Is Zoning?

Zoning is the laws that establish how a property can be used and what codes must be followed when er ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

Rent or Buy - the pros and cons Short Sale Homes What Costs Do Buyers and Sellers Pay On Big Day When Escrow Closes? 5 signs of house foundation problems 7 Tips for a First Time Homebuyer

FAQ

What is a Ginnie Mae? What is the Tax Benefits of Buying a Home? What is Freddie Mac? What do I need to know about Renters Insurance, and what does it cover? What are basis points?