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)
An investment account is a financial account used to hold various investment assets, such as stocks, bonds, mutual funds, and real estate-related securities, facilitating wealth accumulation and specific financial goals.
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.
Investment goals are specific, measurable objectives that guide your real estate investment decisions, helping you define what you want to achieve and by when.
An Investment Philosophy is a comprehensive set of beliefs and principles that guide an investor's decision-making, aligning their financial goals, risk tolerance, and preferred strategies into a consistent approach.
Liabilities are financial obligations or debts that an individual or business owes to others, representing money that must be paid back in the future.
A liability is a financial obligation or debt owed by an individual or entity to another, representing claims against assets that must be settled in the future.
Liquid assets are resources that can be quickly and easily converted into cash without losing significant value, providing financial flexibility and a safety net for investors.
Loan approval is a lender's official decision to provide financing for a property purchase, based on a comprehensive evaluation of the borrower's financial stability and the property's value.
A long-term investment horizon refers to holding an investment for many years, typically five years or more, to benefit from market appreciation, consistent cash flow, and the power of compounding.
A mortgage is a loan obtained from a lender to purchase real estate, where the property itself serves as collateral for the debt. Borrowers make regular payments, including principal and interest, over a set period until the loan is fully repaid.
Mortgage pre-approval is a formal assessment by a lender of how much money you can borrow for a mortgage, based on your verified financial information, providing a strong advantage when making an offer on a property.
A mutual fund is a type of investment vehicle that pools money from many investors to invest in a diversified portfolio of stocks, bonds, or other securities, managed by a professional fund manager.
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