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.
A legally binding contract between a landlord and a tenant that outlines the terms and conditions of renting a property, including rent, duration, and responsibilities.
A lease option is a contract giving a tenant the exclusive right to purchase a property at a set price within a specific timeframe, without the obligation to buy.
Lease renewal is the process where a landlord and tenant agree to extend an existing lease agreement beyond its original term, often involving new terms like rent adjustments.
Lease-up refers to the critical period following the completion of a new or renovated income-producing property, during which the property is actively marketed and leased to achieve stabilized occupancy and rental income.
The lease-up period is the time frame during which a newly constructed or significantly renovated rental property attracts and secures its initial tenants, moving from vacant to stabilized occupancy.
The lease-up phase is the period after a property's completion or acquisition during which the owner actively secures tenants to achieve a target occupancy rate, transitioning the asset from vacant to income-producing.
A property ownership arrangement where an investor holds rights to use and occupy land or a building for a specified period, as defined by a lease agreement, without owning the underlying fee simple title.
A legal addendum is a document added to an existing contract to modify, clarify, or add specific terms and conditions without altering the original agreement's core structure.
A lender is an individual or financial institution that provides funds to a borrower for real estate acquisition or development, expecting repayment with interest. They are crucial for leveraging capital in real estate investment.
A Letter of Intent (LOI) is a non-binding document outlining preliminary terms for a real estate transaction, signaling serious interest and guiding future negotiations before a formal purchase agreement.
Leverage in real estate is the use of borrowed capital, typically through mortgages, to finance property purchases and amplify potential investment returns.
Leverage in real estate refers to the use of borrowed capital, typically mortgage loans, to finance a property purchase, aiming to amplify potential investment returns on the equity invested.
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