Basic investment concepts, portfolio theory, asset allocation, stocks, bonds, mutual funds, and ETFs.
Master investment fundamentals with our progressive approach
Foundation terms you need to know first (44 terms)
Real assets are physical, tangible investments such as real estate, commodities, and infrastructure, valued for their intrinsic properties and often used as an inflation hedge and portfolio diversifier.
Liabilities are financial obligations or debts that an individual or business owes to others, representing money that must be paid back in the future.
The percentage of your disposable income that you save rather than spend, a key metric for personal finance and crucial for building capital for real estate investments.
An Investment Club is a group of individuals who combine their funds and expertise to collectively invest in assets, often real estate, sharing both the risks and rewards.
The amount of money an individual or household has left to spend or save after paying income taxes. It's a key indicator of financial health and purchasing power.
Complex strategies and professional concepts (1 terms)
A 401(k) plan is an employer-sponsored retirement savings account that allows employees to contribute a portion of their salary on a tax-advantaged basis, often with employer matching contributions, to invest for their future.
Actionable steps are small, specific, and measurable tasks that break down a larger real estate investment goal into manageable parts, making it easier to plan and execute your strategy.
An Adjustable-Rate Mortgage (ARM) is a home loan where the interest rate can change periodically based on an index, leading to fluctuating monthly payments after an initial fixed-rate period.
Automated savings is a financial strategy that involves regularly transferring a set amount of money from one account to another without manual intervention, helping investors consistently build capital for real estate goals.
A beginner investor is an individual new to real estate investing, typically with limited experience, focused on learning fundamental concepts and starting with lower-risk strategies.
Business credit is a credit profile established for a business entity, separate from its owner's personal credit, used to secure financing and establish credibility for commercial activities.
A cash reserve is a dedicated fund for real estate investors to cover unexpected property expenses, vacancies, and major repairs, ensuring financial stability and protecting investment cash flow.
The amount of money an individual or household has left to spend or save after paying income taxes. It's a key indicator of financial health and purchasing power.
A payment made by a company or investment fund to its shareholders, typically from its profits, representing a share of earnings. For real estate investors, this often comes from Real Estate Investment Trusts (REITs).
Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. It's a key metric for income-focused investors to understand the return on their investment from dividends.
A readily accessible pool of money set aside to cover unexpected financial challenges, crucial for both personal and real estate investment stability.
Equity in real estate is the portion of a property's value that an owner truly owns, free and clear of any outstanding debts or liens. It is calculated as the property's current market value minus the total amount owed on any mortgages or loans.
Explore complementary areas that build on investment fundamentals concepts
Personal budgeting, expense tracking, cash flow management, emergency funds, and savings strategies.
Credit scores, debt consolidation, loan management, credit repair, and debt payoff strategies.
Macroeconomic concepts, interest rates, inflation, Federal Reserve policy, and economic cycles.
Wills, trusts, estate taxes, succession planning, beneficiary planning, and wealth preservation.