Different approaches to real estate investing including buy-and-hold, fix-and-flip, BRRRR, wholesaling, REITs, and syndications.
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Foundation terms you need to know first (153 terms)
Equity investment in real estate involves directly owning a portion or all of a property, providing the investor with an ownership stake and the potential to benefit from appreciation and rental income.
Real estate networking is the strategic process of building relationships with other professionals and investors in the real estate industry to share knowledge, find opportunities, and secure resources for investment success.
An absolute auction is a type of real estate auction where the property is sold to the highest bidder, regardless of the price, with no minimum bid or reserve price set by the seller.
An office building is a commercial property designed for businesses to conduct administrative, professional, or commercial operations, offering spaces for work and meetings.
A traditional bank mortgage is a conventional loan provided by a financial institution to purchase real estate, following guidelines from Fannie Mae and Freddie Mac, commonly used by investors to finance properties.
Complex strategies and professional concepts (144 terms)
Slow BRRRR is an advanced real estate investment strategy that extends the traditional BRRRR (Buy, Rehab, Rent, Refinance, Repeat) cycle over a longer period, often several years, to maximize equity appreciation and mitigate market risks.
An Equity-for-Property Swap is an advanced real estate investment strategy where an investor exchanges equity in one or more properties or entities for direct ownership of another property, often to achieve tax deferral, portfolio restructuring, or strategic asset acquisition.
Equity dilution occurs when a company or investment vehicle issues new shares, decreasing the ownership percentage of existing shareholders. In real estate, this often happens in syndications or partnerships when additional capital is raised.
Inverse condemnation is a legal action initiated by a private property owner against a government entity to recover "just compensation" for a taking of their property, where the government has not formally exercised its power of eminent domain but has effectively deprived the owner of beneficial use or value.
Capital stacking is an advanced real estate financing strategy involving the layering of multiple debt and equity instruments to fund a property acquisition or development, optimizing the capital structure for specific risk-return profiles.
A Contingent Convertible (CoCo) Bond is a complex hybrid debt instrument issued by financial institutions, primarily banks, that automatically converts into equity or is written down if a pre-specified trigger event, typically related to the issuer's capital adequacy, occurs.
Contract law in real estate governs legally binding agreements between parties involved in property transactions, ensuring enforceability and defining rights and obligations.
Contract termination is the legal process by which parties to a real estate purchase agreement or other contract formally end their obligations before the agreement's full completion, typically due to unmet conditions, breaches, or mutual consent, leading to specific legal and financial consequences.
The contraction phase is a stage in the real estate market cycle characterized by declining property values, reduced sales volume, and increased inventory, typically following a market peak and preceding a trough.
Contrarian investing is an advanced investment strategy where investors intentionally go against prevailing market trends and popular sentiment, buying assets when others are selling and selling when others are buying, believing the market is mispricing assets due to emotional or herd behavior.
Contribution limits are the maximum amounts of money individuals can contribute to various tax-advantaged investment accounts, such as IRAs and 401(k)s, as set by the IRS annually. These limits are designed to regulate tax benefits and ensure equitable access to investment incentives.
A conventional loan is a mortgage not backed by a government agency, adhering to Fannie Mae and Freddie Mac guidelines, commonly used by real estate investors for various property types.
Conversion price is the predetermined per-share price at which a convertible security, such as convertible debt or preferred equity, can be exchanged for common stock of the issuing entity. It is a critical metric for investors evaluating potential equity upside and dilution risks in real estate ventures.
Conversion ratio in real estate investing measures the efficiency of a process by quantifying the percentage of prospects or opportunities that successfully complete a desired action, such as converting a lead into a closed deal or an offer into an accepted contract.
Convertible Preferred Stock is a hybrid security that combines features of both debt and equity, offering fixed dividend payments like preferred stock but with the option to convert into a predetermined number of common shares at the investor's discretion or upon specific triggers.
A convertible security is a type of investment that can be converted into a predetermined number of common shares of the issuing company or partnership at a specified conversion price or ratio, offering investors both income potential and equity upside.
Conveyance is the legal act of transferring property ownership from one party to another, typically through a deed, ensuring the new owner holds official rights to the property.
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