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 draw schedule is a pre-determined plan for disbursing funds from a construction or rehabilitation loan in stages, linked to specific project milestones or work completion percentages.
Driving for Dollars is a real estate investment strategy where investors drive through neighborhoods to find distressed, neglected, or vacant properties that are not yet on the market, aiming to identify motivated sellers for off-market deals.
A real estate investment approach that aims to generate both immediate income (cash flow) and long-term capital growth (appreciation) from a single property or portfolio.
Due diligence is the critical process of investigating and verifying all material facts about a property and its financials before a real estate acquisition, aiming to identify risks and ensure an informed investment decision.
The Due Diligence Period is a contractual timeframe in real estate during which a buyer thoroughly investigates a property's condition, financials, and legal standing to make an informed purchase decision.
A Due Diligence Platform is a specialized software solution that streamlines the evaluation of real estate investment opportunities by aggregating data, automating financial analysis, and assessing risks.
Due diligence in real estate development is a systematic investigation of a property's legal, financial, environmental, physical, and market conditions to assess the feasibility and risks of a proposed construction or redevelopment project.
A due-on-sale clause is a mortgage provision allowing the lender to demand immediate repayment of the entire loan balance if the property is sold or transferred without their consent, protecting against unauthorized loan assumptions.
A duplex is a residential building containing two separate living units, each with its own entrance, kitchen, and facilities, often used by investors for rental income or "house hacking."
Dynamic pricing is a flexible pricing strategy that adjusts the price of a property or service in real-time based on market demand, supply, competitor rates, and other variables to optimize revenue and occupancy.
The Employee Retirement Income Security Act (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to protect individuals in these plans.
Early retirement is the goal of achieving financial independence, allowing an individual to stop working for income before the traditional retirement age, often supported by passive income streams like those from real estate investments.
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