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.
Effective Yield represents the true annualized rate of return on a real estate investment, accounting for all fees, costs, and the compounding effect of income over the investment period.
The Eisenhower Matrix is a time management tool that helps real estate investors prioritize tasks by categorizing them into four quadrants based on urgency and importance, enabling better focus on strategic, high-impact activities.
Emerging markets in real estate refer to regions or countries undergoing rapid economic growth and industrialization, offering high potential returns but also increased risks for investors.
Emotional investing is the practice of making real estate decisions based on feelings, impulses, or psychological biases rather than rational analysis and objective data, often leading to suboptimal financial outcomes.
Entity formation is the legal process of establishing a business structure, such as an LLC or corporation, to own and operate real estate investments, providing asset protection and tax advantages.
Environmental remediation is the process of removing pollutants or contaminants from soil, groundwater, sediment, or surface water to protect human health and the environment, often crucial in real estate transactions and redevelopment.
Equity conversion is the process by which real estate investors transform the accumulated equity in their properties into accessible cash or other liquid assets, typically for reinvestment, debt consolidation, or other financial objectives.
Equity crowdfunding allows multiple investors to collectively fund real estate projects through online platforms, receiving an equity stake and sharing in potential profits and appreciation. It democratizes access to real estate investments by lowering entry barriers.
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.
Equity financing involves raising capital by selling ownership shares in a real estate project or company to investors, who then become part-owners and share in profits and risks.
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.
The Equity Multiple is a performance metric that measures the total cash distributions received from an investment relative to the total equity invested, indicating how many times an investor's initial capital has been returned.
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