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.
The Recovery Phase is a stage in the real estate market cycle following a downturn, characterized by stabilizing prices, increasing transaction volumes, and a gradual return of investor confidence, signaling the beginning of an upward trend.
A legally defined timeframe after a foreclosure sale during which the original homeowner can reclaim their property by paying the full outstanding debt, plus costs and interest.
Redevelopment is the process of transforming an existing, often underutilized or distressed, property or land into a more productive and valuable asset, typically involving significant renovation, demolition, or a change in use.
A referral in real estate is when one professional or client recommends another to a new client, often in exchange for a fee, facilitating new business opportunities based on trust.
Refinancing is the process of replacing an existing mortgage or loan with a new one, often to secure better terms, lower interest rates, or access built-up property equity.
Refinancing risk is the potential for an investor to be unable to refinance existing debt on favorable terms, or at all, when the current loan matures or a new financing need arises. This risk can lead to increased costs, reduced cash flow, or even foreclosure.
Regional Market Analysis is the process of evaluating economic, demographic, and real estate-specific factors within a defined geographic area to identify investment opportunities and assess risks.
Regular capital contributions are scheduled or periodic payments made by investors into a real estate investment, such as a syndication, after their initial investment to fund ongoing project needs or new phases.
Regulation D provides exemptions from SEC registration for private offerings, enabling companies, including real estate syndicators, to raise capital from accredited and sophisticated investors under specific rules.
The regulatory environment in real estate investing encompasses the laws, rules, and government policies that govern property acquisition, development, ownership, and management, significantly impacting investment decisions and operational strategies.
A rehab budget is a comprehensive financial plan detailing all anticipated costs for renovating a real estate property, essential for projecting profitability and managing project expenses.
Rehab costs are all expenses incurred to repair, renovate, or improve a real estate property, directly impacting its value and investment profitability.
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