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.
An Investment Philosophy is a comprehensive set of beliefs and principles that guide an investor's decision-making, aligning their financial goals, risk tolerance, and preferred strategies into a consistent approach.
An Investment Policy Statement (IPS) is a written document outlining an investor's investment objectives, risk tolerance, asset allocation strategy, and guidelines for managing their real estate portfolio.
An Investment Property Loan is financing used to purchase real estate intended for income generation or capital appreciation, not for the borrower's primary residence. These loans have distinct qualification requirements and terms compared to owner-occupied mortgages.
Investment risk in real estate refers to the potential for an investment's actual returns to differ from the expected returns, often resulting in financial loss. It encompasses various factors that can negatively impact property value, cash flow, or an investor's capital.
An investment thesis is a detailed, data-driven argument explaining the fundamental reasons for a specific real estate investment, including market rationale, strategy, financial projections, and risk management.
Investor Relations (IR) is the strategic function that manages communication between a real estate investment firm or syndication sponsor and its investors, fostering trust, transparency, and long-term relationships through consistent information sharing.
Investor sentiment refers to the overall attitude or feeling of investors toward a particular market or asset class, influencing their decisions to buy, sell, or hold investments.
An investor-friendly agent is a real estate professional who specializes in working with real estate investors, understanding their unique goals, and helping them find profitable investment properties. They possess specific knowledge of investment strategies, market analysis, and deal evaluation.
An investor-friendly market is a real estate environment characterized by conditions, regulations, and economic factors that favor real estate investors, offering strong potential for profitable acquisitions, robust rental demand, and favorable returns.
Irrational exuberance describes a period of unsustainable investor overconfidence and speculative buying that drives asset prices, such as real estate, far above their fundamental value, often leading to a market bubble and subsequent correction.
Job growth refers to the increase in employed individuals within a geographic area, serving as a key economic indicator for real estate investors to gauge market health, demand for properties, and potential for appreciation and rental income.
Joint Tenancy with Right of Survivorship (JTWROS) is a form of property co-ownership where two or more individuals hold equal, undivided interests, and upon the death of one owner, their share automatically transfers to the surviving owner(s) without probate.
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