484-448-2223 Ericshelly@Verizon.net


This means (as of 2017):
• having a net worth of at least $1,000,000 (excluding the value of your primary residence)
• or having income of at least $200,000 each year for the past two years (or $300,000 of
combined income if married)
• and having the expectation to have the same income this year (source: SEC regulations).
Note: you do not need to be an accredited investor to invest with us.

Active income is income for which services are performed. This includes wages, salaries, tips, commissions and income from a business in which there is material (ie active) participation.

After Repair Value. The value of a property after it has been renovated.

A legal document that transfers title in real property to a trustee, which holds it as security for a loan (debt). Synonym of mortgage in about half of the States.

For the Benefit Of. For our purpose, this is language used by the custodian of your self-directed IRA. You will not invest in your own name, but use the following wording when applicable: “Quest IRA, Inc. FBO Jane Doe –TRADI/SIMPLE/SEP/ROTH IRA. Account # 1234567”

Internal Rate of Return. It is an indicator of the profitability, efficiency, quality or yield of an investment. Also called the effective interest rate.

Joint Venture. It is a business arrangement in which two or more parties agree to pool their resources (e.g. financial, intellectual, sweat equity) for the purpose of accomplishing a specific task.

Funds that are sitting in low-yield account checking, savings or money market funds (or in cash in an investment account) but could be put to more productive use elsewhere. Funds that dying to be deployed and generate money on your behalf.

Loan to Value. The LTV ratio is calculated as the amount of the mortgage divided by the appraised value of the property, expressed as a percentage. For example, a borrower taking on a $90,000 mortgage to purchase a home appraised at $100,000 would have an LTV ratio of 90% (90,000/100,000).

Net Operating Income. It equals all revenue from a property minus operating expenses.

Earnings derived from a rental property, limited partnership or other business in which one is not materially (actively) involved. Also called “mailbox money.”

Private Placement Memorandum. A legal document provided to prospective investors. It is sometimes referred to as an offering memorandum or offering document.

A financial document that contains a written promise by one party (the note’s issuer) to pay another party (the note’s payee) a specific amount of money. A promissory note typically contains all the terms pertaining to the loan, such as the principal amount, interest rate, maturity date, date and place of issuance, and issuer’s signature.

Return On Investment. A performance measure used to evaluate the efficiency of an investment. ROI measures the amount of return on an investment relative to the investment’s initial investment. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. It is expressed as a percentage.

Single Family Residence.

Any investment that is not stocks, bonds, ETFs and mutual funds. It includes real estate, raw land, gold coins, collectables, oil & gas exploration, start-ups, private placements, intellectual property etc.

Leverage can have multiple meanings, but we often say “buying a property with leverage” instead of “buying a property with a mortgage.”

Letter Of Intent. A legal but non-binding document that describes the details of a real estate transaction before it is finalized.

A financial document that summarizes information about a real estate project: address, purchase price, projected expenses, projected ROI etc.

Synonym for retirement account.

Self-directed IRA. An Individual Retirement Account that allows you to invest in alternative investments (see definition above) such as real estate. They have the same funding limits and offer the same tax benefits as “conventional” IRAs.