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.
Earnest money is a deposit made by a buyer to a seller, held in escrow, demonstrating the buyer's serious intent to purchase a property and serving as security against buyer default.
Earnings management is the strategic manipulation of financial reports by management to achieve specific objectives, often to mislead stakeholders about the underlying economic performance of a company or real estate entity.
An earnout is a contractual provision in a real estate transaction where a portion of the purchase price is contingent upon the future performance or achievement of specific milestones by the acquired asset or business post-acquisition.
A legal right allowing one party to use or access another's property for a specific, limited purpose, without owning the land. It creates a non-possessory interest that can affect property value and use.
Key data points that reveal insights into the current and future health of an economy, used by real estate investors to forecast market trends, assess risk, and inform investment decisions.
Economic indicators are statistical data points that provide insights into the overall health and direction of the economy, influencing real estate market trends, property values, and investment decisions.
Effective Yield represents the true annualized rate of return on a real estate investment, accounting for all fees, costs, and the compounding effect of income over the investment period.
The Eisenhower Matrix is a time management tool that helps real estate investors prioritize tasks by categorizing them into four quadrants based on urgency and importance, enabling better focus on strategic, high-impact activities.
Emerging markets in real estate refer to regions or countries undergoing rapid economic growth and industrialization, offering high potential returns but also increased risks for investors.
Emotional investing is the practice of making real estate decisions based on feelings, impulses, or psychological biases rather than rational analysis and objective data, often leading to suboptimal financial outcomes.
Entity formation is the legal process of establishing a business structure, such as an LLC or corporation, to own and operate real estate investments, providing asset protection and tax advantages.
An entity structure defines the legal and tax framework under which a real estate investment business operates, impacting liability protection, taxation, and administrative requirements.
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