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.
Direct negotiation in real estate involves buyers and sellers dealing directly with each other, bypassing agents to agree on terms, often for off-market or distressed properties.
Direct ownership in real estate refers to an individual or entity holding legal title to a property, granting full control over its acquisition, management, and disposition. This method offers complete autonomy but also carries direct responsibility for all aspects of the investment.
Direct to Seller is a real estate investment strategy where investors directly contact property owners to negotiate and acquire properties, bypassing traditional market channels like real estate agents or the MLS.
Disability insurance provides income replacement if you become unable to work due to illness or injury, protecting both active and essential passive income for real estate investors and safeguarding their portfolios.
Disclosure in real estate refers to the legal obligation for sellers and their agents to reveal known material facts about a property that could influence a buyer's decision or affect the property's value.
Discontinued operations represent a component of an entity that either has been disposed of or is classified as held for sale, and represents a strategic shift that will have a major effect on an entity's operations and financial results.
Discounted Cash Flow (DCF) is a valuation method that estimates the intrinsic value of an investment by projecting its future cash flows and discounting them back to their present value.
Discounted Cash Flow (DCF) is an advanced valuation method that estimates an investment's value by projecting its future cash flows and discounting them back to their present value using a specific rate, accounting for the time value of money.
A discretionary account is an investment account where the account holder grants a financial advisor or broker the authority to make investment decisions, including buying and selling securities, without needing prior approval for each transaction.
Disintermediation is the process of removing intermediaries from a transaction or supply chain, allowing direct interaction between parties. In real estate, this often means investors and borrowers or sellers engaging directly, bypassing traditional financial institutions, brokers, or other middlemen.
Distressed asset investing involves acquiring properties or debt instruments from sellers facing financial hardship, often at a significant discount, with the goal of rehabilitation, repositioning, or restructuring for profit.
A distressed property is real estate facing financial, physical, or legal challenges, often sold below market value due to owner pressure or lender action, offering potential for investor profit.
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