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.
Financial misrepresentation in real estate involves providing false or misleading financial information about a property or transaction, often with the intent to deceive, leading to significant legal and financial repercussions for investors.
Financial ratios are quantitative tools used by real estate investors to assess a property's profitability, liquidity, solvency, and operational efficiency, aiding in informed investment decisions and comparative analysis.
Financial Reporting Standards (FRS) are a set of accounting principles, rules, and procedures that companies must follow when preparing their financial statements, ensuring consistency, transparency, and comparability for stakeholders.
Financial reserves are liquid funds specifically set aside by real estate investors to cover unexpected property expenses, vacancies, and capital expenditures, ensuring the stability and resilience of their investment portfolio.
Financial resilience is an investor's ability to absorb and recover from adverse financial events, market downturns, or unexpected expenses, ensuring the long-term sustainability of their real estate investments.
A financial statement is a formal record detailing the financial activities and position of a business or property, providing critical insights into its performance, cash flow, and overall financial health for informed investment decisions.
Financial Statement Analysis (FSA) is the process of evaluating a business's financial health and performance by examining its financial statements, crucial for real estate investors to assess property viability, investor solvency, and project risk.
The process of obtaining funds or capital to acquire, develop, or manage real estate investments, typically involving borrowed money from lenders (debt financing) or capital from investors (equity financing).
A financing strategy is a comprehensive plan detailing how a real estate investor will fund property acquisitions, manage capital, and structure deals to achieve investment objectives while controlling risk.
Government-backed and private initiatives designed to help individuals purchase their first home by offering financial assistance, favorable loan terms, and educational resources.
The Five-Year Rule primarily refers to the IRS Section 121 exclusion, allowing homeowners to exclude a significant portion of capital gains from the sale of a primary residence if they've owned and used it for at least two of the five years preceding the sale.
A specialized short-term real estate loan designed for investors to purchase, renovate, and quickly resell distressed properties for profit, typically covering both acquisition and rehabilitation costs.
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