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.
Real Estate Owned (REO) refers to property acquired by a lender, typically a bank, after an unsuccessful foreclosure auction. These properties are non-performing assets that lenders aim to sell quickly to minimize losses.
A Real Estate Partnership is a formal agreement between two or more parties to combine resources, expertise, and capital for real estate investment ventures, sharing profits, losses, and responsibilities according to a predefined structure.
Real estate permits are official government authorizations required for construction, renovation, or alteration of property, ensuring compliance with building codes, zoning laws, and safety standards.
A real estate podcast is an audio program featuring interviews with investors and experts, offering education, strategies, and market insights for real estate investing.
A real estate portfolio is a collection of investment properties owned by an individual or entity, designed to generate income, appreciate in value, and diversify investment risk.
Real Estate Professional Status (REPS) is an IRS designation allowing qualifying taxpayers to treat rental real estate activities as non-passive, enabling them to deduct passive losses against non-passive income and potentially reduce their taxable income significantly.
A real estate recession is a significant and sustained decline in real estate market activity, characterized by falling property values, reduced transaction volumes, and increased foreclosures, often linked to broader economic downturns.
Real estate refinancing is the process of replacing an existing mortgage loan with a new one, typically to secure better terms, lower payments, or access property equity for investment purposes.
Real estate retirement planning involves strategically incorporating real estate investments into a broader retirement portfolio to generate income, build wealth, and achieve long-term financial security.
A real estate seminar is an educational event, often held in person or online, designed to teach individuals about various aspects of real estate investing, market trends, and property management.
Real estate syndication is a private equity strategy where multiple investors pool capital to acquire and manage large-scale real estate assets, typically led by a sponsor (General Partner) for passive Limited Partners.
Documented, repeatable steps and procedures that standardize operations, enhance efficiency, and enable scalability in a real estate investment business.
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