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 (156 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.
Collateral is an asset or property pledged by a borrower to a lender to secure a loan, providing a guarantee for repayment and reducing the lender's risk.
A commercial loan is a debt financing product used by investors to acquire, develop, or refinance income-generating real estate properties, distinct from residential mortgages due to its focus on property performance and business use.
Commercial Real Estate (CRE) refers to properties used exclusively for business activities or to generate income, encompassing office, retail, industrial, and large multifamily assets.
Adherence to the complex web of laws, regulations, and ethical standards governing real estate transactions and operations, crucial for mitigating legal and financial risks.
A condominium is a privately owned individual unit within a larger building or community, where the owner also shares ownership of common areas and facilities managed by a Homeowners Association (HOA).
Confirmation bias is a cognitive bias where investors selectively seek, interpret, and recall information that confirms their pre-existing beliefs or hypotheses, often leading to flawed real estate investment decisions by ignoring contradictory evidence.
Consideration in real estate refers to the value exchanged between parties in a contract, essential for its legal enforceability. It can be money, property, services, or a promise to perform an action, ensuring mutual commitment to the agreement.
A construction loan is a short-term, interim financing option used to cover the costs of building a new property or undertaking significant renovations, with funds disbursed in stages as construction progresses.
A construction project in real estate involves the systematic planning, design, financing, and execution of building new structures or significantly renovating existing ones, typically for investment or development purposes.
Contingencies are conditions in a real estate contract that must be met for the agreement to be legally binding, protecting buyers and sellers from unforeseen issues.
A contingency clause in a real estate contract is a condition that must be met for the agreement to become legally binding, providing an escape route if specified terms are not satisfied.
A contingency event in real estate is a condition or action that must be met for a real estate contract to become legally binding. These clauses protect buyers and sellers by allowing them to back out of a deal without penalty if specified conditions are not satisfied.
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