Basic investment concepts, portfolio theory, asset allocation, stocks, bonds, mutual funds, and ETFs.
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Foundation terms you need to know first (45 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)
Financial freedom is the state where your passive income consistently covers all your living expenses, allowing you to live without needing a traditional job.
Financial planning is the comprehensive process of managing your money to achieve personal and investment goals, involving budgeting, saving, investing, and risk management.
A financial profile is a comprehensive summary of an individual's or entity's financial health, encompassing income, expenses, assets, liabilities, and credit history, crucial for assessing creditworthiness and investment capacity.
Financial readiness is the state of having your personal finances in order, including stable income, manageable debt, a strong credit score, and sufficient savings, to confidently undertake real estate investments.
A first-time homebuyer is an individual who has not owned a primary residence in the last three years, making them eligible for special loan programs and financial assistance designed to facilitate homeownership.
Focus Blocks are dedicated, uninterrupted periods of time, typically 60-90 minutes, set aside for deep, single-task work on high-priority real estate investment activities to maximize concentration and output.
Goal setting in real estate investing is the process of defining clear, measurable, and achievable targets for your investment activities, providing direction and a roadmap for success.
A type of savings account that offers significantly higher interest rates than traditional savings accounts, typically provided by online banks and FDIC-insured.
An IRA rollover is the process of moving funds from one retirement account to another, typically from an employer-sponsored plan to an Individual Retirement Account (IRA), without incurring immediate taxes or penalties.
Imposter syndrome in real estate investing is the persistent feeling that one's success is undeserved or achieved through luck, despite clear evidence of competence and achievement, leading to self-doubt and fear of being exposed as a 'fraud'.
An Individual Retirement Account (IRA) is a tax-advantaged savings plan designed to help individuals save for retirement, offering benefits like tax-deferred growth or tax-free withdrawals.
Interest income is the money earned by lending funds or investing in debt instruments, representing the cost a borrower pays for using the lender's money. For real estate investors, it often comes from private loans or seller financing.
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.