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.
A legal concept that separates the liabilities of a business entity from its owners, protecting personal assets from business debts and lawsuits.
Cost control is the strategic process of planning, monitoring, and managing expenses to optimize profitability and achieve financial objectives in real estate investments.
Cost estimation in real estate is the process of forecasting the expenses required to acquire, develop, renovate, or operate a property, crucial for financial planning and investment analysis.
Cost overruns are unexpected or additional expenses incurred during a real estate project that exceed the initial budget, significantly impacting profitability and project timelines.
Cost Segregation is an IRS-approved tax strategy that reclassifies components of a commercial or residential rental property into shorter depreciation schedules, accelerating tax deductions and boosting immediate cash flow for real estate investors.
Cost of Sales (COS) in real estate refers to the direct expenses incurred in acquiring, holding, and ultimately selling an investment property, crucial for calculating net profit.
Cost to Cure is the estimated expense required to repair, replace, or restore a property to its intended condition, or to remedy identified defects, crucial for real estate investment analysis.
Cost-Benefit Analysis (CBA) is a systematic process for comparing the total estimated costs of a project or decision with its total estimated benefits, typically expressed in monetary terms, to determine its overall feasibility and value.
A counteroffer is a response to an initial real estate offer that proposes different terms, effectively rejecting the original offer and creating a new one to continue negotiations.
Countertrade in real estate refers to a reciprocal form of international trade where goods or services are exchanged for property, or property for other assets, rather than for cash. It's often used to overcome currency restrictions or facilitate complex cross-border transactions.
A legal assurance in a deed, typically a warranty deed, guaranteeing that the conveyed property is free from any undisclosed liens, easements, or other burdens on the title at the time of transfer.
A contractual promise by a grantor in a real estate transaction to perform any reasonable acts necessary to perfect the title conveyed to the grantee, should defects or omissions arise post-closing.
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