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.
The exchange ratio defines the number of shares or units of one asset that will be received in exchange for each share or unit of another asset, commonly used in real estate syndications, mergers, or portfolio swaps to determine relative value.
An Exchange-Traded Fund (ETF) is an investment fund that holds a diversified basket of assets like stocks or bonds and trades on stock exchanges throughout the day, offering flexibility and often lower costs.
A contractual provision that limits or extinguishes the liability of one party for damages or losses caused to another party, commonly found in real estate agreements to protect landlords, lenders, or sellers from certain claims.
The exercise price, also known as the strike price, is the predetermined price at which an underlying asset, such as a property in a real estate option contract, can be bought or sold.
An expert network in real estate investing is a curated group of specialized professionals and advisors providing targeted knowledge, insights, and services to investors for informed decision-making and problem-solving.
An FHA 203k loan is a government-insured mortgage that allows homebuyers to finance both the purchase or refinance of a property and the cost of its rehabilitation or renovation into a single loan, based on the property's value after improvements.
An FHA loan is a government-insured mortgage backed by the Federal Housing Administration, offering lower down payments and more flexible credit requirements to make homeownership more accessible.
A farm lease is a contractual agreement between a landowner (lessor) and a farmer (lessee) that grants the farmer the right to use agricultural land for farming purposes in exchange for rent or a share of the crop.
Farmland investment involves buying agricultural land with the goal of generating income through farming operations, leasing to farmers, or benefiting from land value appreciation. It's considered a stable asset class, often acting as a hedge against inflation.
Fear of Missing Out (FOMO) in real estate investing is the anxiety that a profitable investment opportunity will be missed, leading to impulsive, emotionally-driven decisions rather than rational, data-backed analysis.
A comprehensive assessment of a proposed real estate project or investment to determine its viability, practicality, and potential for success across market, technical, financial, operational, and legal aspects.
Fee simple is the highest and most comprehensive form of property ownership, granting the owner full, perpetual, and inheritable rights to the land and its improvements, subject only to governmental powers and private encumbrances.
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