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 bull trap is a false signal in a declining market where a brief recovery or breakout above a resistance level lures investors into buying, only for the market to reverse and continue its downward trend, trapping those who bought.
Business finances involve the management of all money-related activities within a company, including income, expenses, profit, and cash flow, crucial for understanding investment performance.
A business loan is a type of financing provided to a business entity or investor to acquire, develop, or renovate real estate for investment purposes, with repayment based on the business's financial health and the property's income potential.
A "Buy Box" is a set of specific criteria that real estate investors use to define the types of properties they are looking to acquire, helping them quickly identify suitable investment opportunities.
Buy-and-hold real estate investing is a long-term strategy focused on purchasing income-producing properties to generate rental income, benefit from appreciation, and build equity over an extended period.
A Buyer's List is a database of pre-qualified individuals or entities actively seeking to purchase investment properties, detailing their specific criteria and contact information, used to facilitate quick and efficient property dispositions.
A buyer's market is a real estate condition where the supply of available properties exceeds the demand from buyers, giving buyers more leverage in negotiations and leading to potentially lower prices and more favorable terms.
Buyer's premium is an additional fee charged to the winning bidder in an auction, calculated as a percentage of the final winning bid and added to the total purchase price.
Bylaws are a set of fundamental rules and regulations that govern the internal affairs, management, and operational procedures of an organization, entity, or association in real estate.
A Commercial Mortgage-Backed Security (CMBS) loan is a form of commercial real estate financing where multiple commercial mortgages are pooled, securitized into bonds, and sold to investors, offering non-recourse debt for large-scale properties.
Calculated risk is an investment strategy where potential financial or strategic actions are taken after thoroughly assessing, quantifying, and developing mitigation strategies for all associated risks. It's an informed decision based on data and analysis, not a gamble.
A capital account tracks an investor's equity stake in a real estate partnership or LLC, reflecting contributions, distributions, and their share of profits or losses.
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