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 business structure where real estate investors pay a recurring fee to access exclusive content, analytical tools, community forums, and expert guidance, fostering continuous education and networking.
Real estate mentorship is a relationship where an experienced investor guides and advises a less experienced individual, providing practical knowledge, support, and insights to accelerate their learning and success in real estate investing.
A real estate mentorship program is a structured educational experience where an experienced investor guides a less experienced individual through their investment journey, offering practical knowledge and support.
Mezzanine financing is a hybrid debt-equity instrument used in real estate to bridge the gap between senior debt and sponsor equity, offering higher leverage at a higher cost due to its subordinated position in the capital stack.
A mid-term rental is a property leased for a period typically ranging from one to six months, bridging the gap between short-term (vacation) and long-term (annual) rentals. It caters to specific tenant needs like traveling professionals, students, or those relocating.
A mission statement is a clear, concise declaration outlining an investor's core purpose, values, and methods for achieving their real estate investment goals. It serves as a guiding principle for all investment decisions.
Mixed-use development integrates multiple property types, such as residential, commercial, and retail, into a single project or compact area to create vibrant, walkable communities.
Modern Portfolio Theory (MPT) is an investment framework that aims to maximize portfolio expected return for a given level of market risk, or equivalently, minimize risk for a given level of expected return, through diversification.
Mortgage REITs (mREITs) are companies that invest in mortgages and mortgage-backed securities (MBS), generating income primarily from the interest earned on these investments and the spread between borrowing and lending rates.
Mortgage rates are the interest percentages charged on real estate loans, determining the cost of borrowing and significantly impacting monthly payments and investment profitability.
Mortgage-Backed Securities (MBS) are investment vehicles representing claims on the cash flows from a pool of mortgage loans, allowing investors to indirectly participate in the mortgage market.
A motivated seller is a property owner who needs to sell quickly due to urgent circumstances, often prioritizing speed and convenience over achieving the highest possible market price.
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