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 formal legal document required for certain investment offerings, providing comprehensive details about the investment, its risks, and the issuing entity to help potential investors make informed decisions.
A public tender is a formal, competitive process through which government agencies or public entities solicit bids from interested parties for the sale of assets, including real estate, or for the provision of goods and services.
A Public-Private Partnership (PPP) is a long-term contract between a public entity and a private company for the provision of public assets or services, leveraging private sector expertise and capital to deliver infrastructure and services traditionally provided by the government.
A punch list is a document compiled at the end of a construction or renovation project, detailing work that needs to be completed or corrected before final acceptance and payment. It ensures all contractual obligations and quality standards are met.
A Purchase Agreement is a legally binding contract that outlines the terms and conditions of a real estate transaction, formalizing the buyer's offer and the seller's acceptance.
The purchase price is the total amount of money a buyer agrees to pay a seller for a property, representing the agreed-upon value before additional closing costs.
A legally binding contract outlining the terms and conditions between a buyer and seller for a real estate transaction, crucial for protecting both parties' interests and ensuring a smooth transfer of ownership.
The Qualified Business Income (QBI) Deduction, under Section 199A, allows eligible owners of pass-through entities and self-employed individuals to deduct up to 20% of their qualified business income, subject to various income, W-2 wage, and qualified property limitations.
A Qualified Intermediary (QI) is a neutral third party that facilitates a 1031 exchange by holding sale proceeds from a relinquished property and using them to acquire a replacement property, preventing the taxpayer from having constructive receipt of funds and ensuring tax deferral.
A Qualified Opportunity Fund (QOF) is an investment vehicle that allows investors to defer, reduce, and potentially eliminate capital gains taxes by reinvesting those gains into designated low-income urban and rural communities called Opportunity Zones.
Quantitative Tightening (QT) is a monetary policy where a central bank reduces its balance sheet by allowing maturing assets to expire without reinvestment, thereby decreasing the money supply and tightening financial conditions to combat inflation.
Quick analysis is a rapid, high-level evaluation of a potential real estate investment property to quickly determine if it's worth pursuing with more detailed due diligence.
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