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.
Taxable income for Real Estate Investment Trusts (REITs) refers to the earnings generated by a REIT that are subject to taxation at the shareholder level, primarily through dividend distributions, due to the REIT's pass-through tax structure.
Tenancy in Common (TIC) is a form of co-ownership where two or more individuals hold distinct, undivided interests in a property, allowing for unequal ownership shares and independent transferability of each owner's portion.
Tenant Experience refers to the sum of all interactions a resident has with their landlord, property, and management team, significantly impacting satisfaction, retention, and property value.
Tenant retention refers to the strategies and efforts property owners and managers use to encourage existing tenants to renew their leases, minimizing vacancies and turnover costs.
The Terminal Cap Rate is the estimated capitalization rate used to project a property's sale price (reversionary value) at the end of a future holding period, a critical input in Discounted Cash Flow (DCF) valuation.
A quick screening tool for real estate investors that estimates operating expenses (excluding mortgage principal and interest) to be 50% of the gross rental income, helping to quickly assess a property's potential profitability.
The 70% Rule is a real estate investment guideline stating that a fix-and-flip investor should pay no more than 70% of a property's After Repair Value (ARV) minus the estimated repair costs, ensuring a sufficient profit margin.
A time audit is a systematic process of tracking and analyzing how you spend your time to identify inefficiencies and optimize productivity, especially for real estate investors aiming to maximize deal flow and portfolio growth.
Time blocking is a productivity technique where you allocate specific blocks of time in your calendar to focus on particular tasks, treating these blocks as firm appointments. It helps real estate investors manage diverse responsibilities, prioritize high-value activities, and minimize distractions.
Time management in real estate investing involves organizing and planning how to divide your time between specific activities to maximize efficiency and achieve investment goals.
Title in real estate refers to the legal right of ownership to a property, representing a bundle of rights that an owner possesses over their land and any structures on it.
Total Return is a comprehensive measure of an investment's performance, encompassing both the income generated (like rent) and the capital appreciation (increase in property value) over a specific period.
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