Different approaches to real estate investing including buy-and-hold, fix-and-flip, BRRRR, wholesaling, REITs, and syndications.
Master investment strategies & methods with our progressive approach
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 portfolio loan is a mortgage originated and held by the lender on its own balance sheet, offering flexible underwriting for unique real estate investment properties that don't fit conventional lending criteria.
Portfolio longevity refers to the ability of a real estate investment portfolio to remain profitable and sustainable over an extended period, often decades, through various market conditions.
Portfolio rebalancing is the process of adjusting an investment portfolio's asset allocation back to its original or target levels, typically to maintain a desired risk profile and investment strategy.
Portfolio turnover measures the rate at which assets within an investment portfolio are bought and sold over a specific period, typically one year, indicating the frequency of trading activity.
The Post-Foreclosure Stage is the period after a property has been legally repossessed by a lender and becomes a Real Estate Owned (REO) asset, often presenting investment opportunities for buyers.
A period after a homeowner defaults on their mortgage but before the property is officially repossessed by the lender, offering a critical window for resolution or investment opportunities.
Pre-leasing is the practice of securing lease agreements with tenants for a property that is still under construction or undergoing significant renovation, prior to its completion and readiness for occupancy.
Pre-tax funds are investment capital contributed before income taxes are calculated, allowing for tax-deferred growth or immediate tax deductions, commonly used in retirement accounts for real estate investing.
Preferred equity is a hybrid financing instrument in real estate that provides investors with a preferential claim on a property's cash flow and sale proceeds, typically paid before common equity but after senior debt.
Preferred Return is a priority distribution threshold in real estate syndications, ensuring limited partners receive a specified annual return on their unreturned capital before general partners share in profits.
Preferred stock is a hybrid security that combines features of both bonds and common stock, typically offering fixed dividend payments and priority over common stockholders in receiving dividends and assets upon liquidation.
Premium financing is a sophisticated financial strategy where an investor borrows funds from a third-party lender to pay the premiums on a large insurance policy, typically a life insurance policy or substantial commercial property insurance, using the policy itself or other assets as collateral.
Explore complementary areas that build on investment strategies & methods concepts
Personal budgeting, expense tracking, cash flow management, emergency funds, and savings strategies.
Credit scores, debt consolidation, loan management, credit repair, and debt payoff strategies.
Macroeconomic concepts, interest rates, inflation, Federal Reserve policy, and economic cycles.
Wills, trusts, estate taxes, succession planning, beneficiary planning, and wealth preservation.