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.
Fully diluted shares represent the total number of common shares that would be outstanding if all convertible securities and other dilutive instruments were exercised or converted into common stock.
The process of providing capital for a real estate investment or project, typically involving a mix of debt and equity to acquire, develop, or refinance properties.
Funds From Operations (FFO) is a key financial metric used primarily by Real Estate Investment Trusts (REITs) to define the cash flow from their operations, providing a more accurate picture of their profitability than traditional net income.
A General Partner (GP) is the active manager in a real estate limited partnership or syndication, responsible for all operational and strategic decisions, and traditionally bearing unlimited personal liability for the partnership's obligations.
Generational wealth refers to assets, knowledge, and values passed down from one generation to the next, providing a financial foundation and opportunities for future family members.
Gentrification is the process of renovating and improving a neighborhood, attracting more affluent residents and businesses, which often leads to the displacement of existing lower-income communities due to rising costs.
Geographic diversification is a real estate investment strategy that involves spreading investments across different geographical regions or markets to mitigate localized risks and enhance portfolio stability and potential returns.
Goal setting in real estate investing is the process of defining clear, measurable, and achievable targets for your investment activities, providing direction and a roadmap for success.
The going-in cap rate is a real estate investment metric that measures the initial unleveraged rate of return an investor can expect from a property based on its first year's projected Net Operating Income (NOI) relative to its purchase price.
Debt considered beneficial because it helps acquire assets that appreciate in value or generate income, ultimately improving financial health.
Grant programs provide non-repayable financial assistance from government, non-profit, or private sources for specific real estate purposes, such as homeownership, rehabilitation, or community development, reducing an investor's out-of-pocket expenses.
A grantor is the legal owner of a property who transfers ownership to another party, known as the grantee, typically through a deed in a real estate transaction.
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