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 fiduciary deed is a legal instrument used by a representative (fiduciary) to transfer property, typically offering limited warranties and requiring enhanced buyer due diligence.
Fiduciary duty is a legal and ethical obligation for a professional to act in the best interest of their client, prioritizing the client's needs above their own with utmost loyalty, care, and disclosure.
Filtering in real estate investing is the process of narrowing down a large pool of potential properties to a smaller, more manageable list that meets specific investment criteria.
A financial derivative is a contract whose value is derived from an underlying asset, index, or rate, used by sophisticated real estate investors for hedging risk, speculation, or arbitrage.
Financial Emotional Intelligence is the capacity to understand and manage one's own emotions and those of others in financial decision-making, enabling rational and disciplined investment choices, especially under market pressure.
Financial freedom is the state where your passive income consistently covers all your living expenses, allowing you to live without needing a traditional job.
Financial hedging is an advanced risk management strategy employed by real estate investors to mitigate potential losses from adverse price movements in assets, liabilities, or future cash flows, typically using derivative instruments.
Financial misrepresentation in real estate involves providing false or misleading financial information about a property or transaction, often with the intent to deceive, leading to significant legal and financial repercussions for investors.
Financial ratios are quantitative tools used by real estate investors to assess a property's profitability, liquidity, solvency, and operational efficiency, aiding in informed investment decisions and comparative analysis.
Financial Reporting Standards (FRS) are a set of accounting principles, rules, and procedures that companies must follow when preparing their financial statements, ensuring consistency, transparency, and comparability for stakeholders.
Financial reserves are liquid funds specifically set aside by real estate investors to cover unexpected property expenses, vacancies, and capital expenditures, ensuring the stability and resilience of their investment portfolio.
Financial resilience is an investor's ability to absorb and recover from adverse financial events, market downturns, or unexpected expenses, ensuring the long-term sustainability of their real estate investments.
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