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 Income Capitalization Approach is a real estate valuation method that estimates a property's value by converting its expected future income (Net Operating Income) into a present value using a capitalization rate.
Incremental progress is a strategy in real estate investing that involves achieving large goals by breaking them into small, consistent, and manageable steps, leading to significant long-term results.
An indemnification clause is a contractual provision where one party (the indemnitor) agrees to compensate the other party (the indemnitee) for losses, damages, or liabilities incurred due to specified events or actions.
An industrial warehouse is a large commercial building used for storing, manufacturing, or distributing goods and materials, serving as a critical link in the supply chain for various industries.
The Infinite Banking Concept (IBC) is a financial strategy where individuals or businesses use a specially designed participating whole life insurance policy to become their own bank, financing major purchases and investments, including real estate, with policy loans.
Inflation is the rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of currency over time.
An inflation hedge is an investment, such as real estate, that is expected to retain or increase its value and purchasing power during periods of rising inflation, protecting wealth from currency devaluation.
Inflation hedging is an investment strategy designed to protect the purchasing power of capital from the eroding effects of rising inflation. It involves allocating assets that are expected to increase in value or generate higher income during inflationary periods.
Infrastructure spending refers to government investment in public physical assets like transportation networks, utilities, and public facilities, which significantly influences real estate development, property values, and investment opportunities.
Inherited property refers to real estate received after the death of a property owner, typically through a will, trust, or state law. It presents unique opportunities and challenges for real estate investors.
An Initial Public Offering (IPO) is the process by which a private company first offers its shares to the public, allowing individual and institutional investors to purchase ownership stakes. This transition from private to public ownership enables companies to raise significant capital for growth and expansion.
An inspection contingency is a clause in a real estate purchase agreement that allows the buyer to conduct a professional home inspection and, based on the findings, negotiate repairs, request credits, or withdraw from the contract without losing their earnest money deposit.
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