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 investment climate refers to the sum of economic, political, social, and regulatory factors that influence the attractiveness and risk of investing in a particular market or asset class.
An Investment Club is a group of individuals who combine their funds and expertise to collectively invest in assets, often real estate, sharing both the risks and rewards.
Investment control in real estate refers to the degree of influence and decision-making authority an investor has over their real estate assets, operations, and investment vehicles.
Investment criteria are a set of predefined standards and metrics that real estate investors use to evaluate potential properties, ensuring alignment with their financial goals, risk tolerance, and investment strategy.
Investment decision making is the structured process of evaluating potential real estate acquisitions, assessing their financial viability and risks, and determining whether to proceed with an investment based on predefined objectives and market analysis.
Investment fraud refers to deceptive practices that induce investors to make purchases or sales based on false information, often resulting in significant financial losses. It encompasses a broad range of illicit schemes designed to exploit investor trust and capital.
Investment goal derailment occurs when an investor's real estate objectives are not met or are significantly delayed due to unexpected events or poor planning, leading to underperformance or losses.
Investment goals are specific, measurable objectives that guide your real estate investment decisions, helping you define what you want to achieve and by when.
The planned length of time an investor intends to hold a real estate asset before selling it. It significantly influences investment strategies and expected returns.
An Investment Manager is a professional or firm responsible for managing a portfolio of real estate assets or funds on behalf of clients, aiming to achieve specific investment objectives and maximize returns.
The disciplined approach of allowing real estate investments sufficient time to mature and realize their full potential, often involving riding out short-term market fluctuations for long-term gains.
The total monetary inflows an investor receives from their real estate assets, including rental income, loan repayments, or distributions from partnerships, before deducting any expenses.
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