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.
In real estate investing, distribution refers to the payout of profits or cash flow from an investment property or fund to its investors. These payouts can occur regularly, such as monthly or quarterly, or as a lump sum upon sale or refinancing.
A distribution policy in real estate investing outlines how profits, cash flow, and capital are allocated and disbursed among investors and sponsors in a syndicated deal or fund.
Distribution Yield measures the cash income an investor receives from an investment, typically expressed as a percentage of its current market price. It's commonly used for income-generating assets like REITs and private real estate syndications.
Diversification in real estate is the strategy of spreading investment capital across various assets, markets, or property types to reduce risk and enhance portfolio stability against market fluctuations.
A payment made by a company or investment fund to its shareholders, typically from its profits, representing a share of earnings. For real estate investors, this often comes from Real Estate Investment Trusts (REITs).
Dividend recapitalization is a corporate finance transaction where a company issues new debt to pay a large dividend to its shareholders, often used by private equity firms to extract value from an investment before a full exit.
Document review in real estate investing is the critical process of thoroughly examining all pertinent legal, financial, and property-related records to assess risks, verify information, and ensure compliance before making an investment decision.
Dollar-Cost Averaging (DCA) is an investment strategy where an investor divides the total amount to be invested across periodic purchases of a target asset, aiming to reduce the impact of market volatility on the overall purchase price.
Domestic capital formation refers to the total investment made within a country to increase its productive capacity, primarily through the accumulation of physical assets like real estate, infrastructure, and machinery. It represents the portion of national income saved and reinvested domestically.
The voluntary transfer of real estate ownership from an individual or entity to a qualified charitable organization, often yielding significant income tax deductions and capital gains tax avoidance for the donor.
A down payment is an initial upfront payment made when purchasing a property, representing a portion of the total purchase price and reducing the amount of money borrowed through a mortgage.
Downside protection in real estate investing refers to strategies and measures taken to minimize potential financial losses or negative outcomes in an investment, safeguarding capital against adverse events.
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.