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.
Document review in real estate investing is the critical process of thoroughly examining all pertinent legal, financial, and property-related records to assess risks, verify information, and ensure compliance before making an investment decision.
Dollar-Cost Averaging (DCA) is an investment strategy where an investor divides the total amount to be invested across periodic purchases of a target asset, aiming to reduce the impact of market volatility on the overall purchase price.
Domestic capital formation refers to the total investment made within a country to increase its productive capacity, primarily through the accumulation of physical assets like real estate, infrastructure, and machinery. It represents the portion of national income saved and reinvested domestically.
The voluntary transfer of real estate ownership from an individual or entity to a qualified charitable organization, often yielding significant income tax deductions and capital gains tax avoidance for the donor.
A down payment is an initial upfront payment made when purchasing a property, representing a portion of the total purchase price and reducing the amount of money borrowed through a mortgage.
Downside protection in real estate investing refers to strategies and measures taken to minimize potential financial losses or negative outcomes in an investment, safeguarding capital against adverse events.
A draw schedule is a pre-determined plan for disbursing funds from a construction or rehabilitation loan in stages, linked to specific project milestones or work completion percentages.
Driving for Dollars is a real estate investment strategy where investors drive through neighborhoods to find distressed, neglected, or vacant properties that are not yet on the market, aiming to identify motivated sellers for off-market deals.
A real estate investment approach that aims to generate both immediate income (cash flow) and long-term capital growth (appreciation) from a single property or portfolio.
Due diligence is the critical process of investigating and verifying all material facts about a property and its financials before a real estate acquisition, aiming to identify risks and ensure an informed investment decision.
The Due Diligence Period is a contractual timeframe in real estate during which a buyer thoroughly investigates a property's condition, financials, and legal standing to make an informed purchase decision.
A Due Diligence Platform is a specialized software solution that streamlines the evaluation of real estate investment opportunities by aggregating data, automating financial analysis, and assessing risks.
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