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.
Flexible workspace refers to office environments that offer adaptable terms, layouts, and services, allowing businesses to scale their space up or down as needed without long-term commitments. This includes coworking spaces, serviced offices, and shared offices.
For Sale By Owner (FSBO) refers to the process of selling a property without the representation of a real estate agent or broker, allowing sellers to potentially save on commission fees.
Forced appreciation is the increase in a property's value resulting from an investor's deliberate actions, such as renovations, operational improvements, or strategic repositioning, rather than general market fluctuations.
A foreclosure auction is a public sale where properties are sold to the highest bidder to satisfy a mortgage debt in default. These auctions offer opportunities for investors to acquire properties, often below market value, but come with significant risks and require extensive due diligence.
The foreclosure process is the legal procedure by which a lender repossesses a property from a borrower who has defaulted on their mortgage, typically leading to a public sale to recover the outstanding debt.
Foreign qualification is the legal process by which a business entity, such as an LLC or corporation, registers to conduct business in a state other than its state of formation. It grants the entity the authority to operate legally and access local courts in the 'foreign' state.
Forward integration in real estate is a growth strategy where an investor or company expands control over subsequent stages of the value chain, moving closer to the end-user or consumer. This typically involves taking on activities like property management, sales, or leasing that were previously outsourced.
A fourplex is a single residential building containing four separate living units, offering investors diversified rental income and accessible financing options, often used for 'house hacking' strategies.
Fractional ownership allows multiple unrelated parties to share in the ownership of a high-value asset, typically real estate, dividing costs, usage, and appreciation proportionally.
Fraudulent conveyance is a legal term for transferring assets, often real estate, to a third party to avoid creditor claims, either with intent to defraud or under circumstances of insolvency and inadequate value.
Free Cash Flow (FCF) represents the cash a company or property generates after accounting for cash outflows to support operations and maintain its capital assets, indicating the cash available to debt and equity holders.
Free Cash Flow Yield (FCFY) is a financial solvency ratio that compares the free cash flow per share a company or property generates to its market value per share or enterprise value, indicating the cash return on investment.
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