Different approaches to real estate investing including buy-and-hold, fix-and-flip, BRRRR, wholesaling, REITs, and syndications.
Master investment strategies & methods with our progressive approach
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.
Debt recycling is an advanced financial strategy where non-tax-deductible debt, typically a primary home mortgage, is converted into tax-deductible debt by using the equity to acquire income-producing assets.
Debt reduction is the strategic process of paying down outstanding loan balances, particularly mortgages, faster than scheduled to minimize interest expenses, increase equity, and improve an investor's financial position.
A Debt-for-Property Swap is an advanced real estate transaction where a debtor transfers ownership of a property to a creditor in full or partial satisfaction of an outstanding debt, often used in distressed situations or for strategic asset acquisition.
A Declaration of Trust is a legally binding document that formally acknowledges the beneficial ownership of a property, distinguishing it from the legal title holder. It clarifies the rights and responsibilities of all parties involved, particularly in co-ownership or nominee arrangements.
Decreasing term life insurance is a type of term life insurance where the death benefit decreases over the policy's term, typically aligning with a declining debt such as a mortgage, while premiums usually remain level.
Deep Work refers to professional activities performed in a state of distraction-free concentration that push your cognitive capabilities, leading to new value creation and skill improvement for real estate investors.
Default risk is the potential for a borrower or tenant to fail to meet their contractual financial obligations, such as making mortgage or rent payments, leading to financial losses for lenders and property owners.
Defeasance is a complex financial and legal process in commercial real estate where a borrower substitutes a portfolio of U.S. Treasury securities for the original property as collateral, effectively releasing the property from the mortgage lien, typically to facilitate a sale or refinancing when the loan contains a lockout period or strict prepayment penalty.
A defensive play in real estate investing involves strategies focused on capital preservation and risk mitigation, particularly during uncertain economic conditions or market downturns, prioritizing stability over aggressive growth.
A deferred payment is an arrangement where a borrower is allowed to postpone making a payment, or a portion of a payment, until a later agreed-upon date. This can apply to various financial obligations, including loans, mortgages, or even purchase agreements.
A Defined Benefit Plan is a type of employer-sponsored retirement plan that guarantees a specific payout at retirement, typically based on salary and years of service. For real estate investors, self-directed versions allow for significant tax-advantaged contributions to invest in real estate.
A Delaware Statutory Trust (DST) is a legally recognized entity used in real estate to hold title to investment property, primarily utilized by accredited investors seeking passive income and 1031 exchange replacement property solutions.
Explore complementary areas that build on investment strategies & methods 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.