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.
Liquidity risk is the potential for an investor to be unable to sell an asset quickly enough to prevent a loss or to meet short-term financial obligations without significant price concessions.
A liquidity strategy in real estate investing is a proactive plan to ensure an investor has sufficient accessible cash or assets that can be quickly converted to cash to meet financial obligations and capitalize on opportunities.
Lis Pendens is a recorded legal notice indicating that a lawsuit has been filed concerning the title to or possession of specific real property, warning that any subsequent interest in the property will be subject to the outcome of the litigation.
A listing agreement is a legally binding contract between a property owner and a real estate broker, granting the broker authority to sell the property and outlining the terms of their compensation and responsibilities.
A loan draw is a disbursement of funds from a construction or rehabilitation loan, released in stages as specific project milestones are completed and verified by inspections.
Loan qualification is the process by which lenders evaluate a borrower's financial health and creditworthiness to determine eligibility for a loan, assessing factors like credit score, debt-to-income ratio, and assets to mitigate risk.
The loan term is the duration over which a borrower agrees to repay a loan, typically expressed in years, and significantly impacts monthly payments, total interest paid, and overall financial strategy.
Location analysis is the systematic evaluation of geographic areas to assess their suitability and potential profitability for real estate investment, considering various market, economic, and demographic factors.
Location strategy in real estate investing involves the systematic process of identifying and evaluating geographical areas to find properties that align with specific investment goals and market conditions, maximizing potential returns and minimizing risks.
Long-term capital refers to funds committed to an investment for an extended period, typically several years or more, essential for real estate projects requiring significant upfront investment and delayed returns.
Long-Term Capital Gains are profits from selling an asset held for more than one year, typically taxed at lower, preferential rates compared to ordinary income, making them a key consideration for real estate investors.
A real estate investment strategy focused on acquiring and holding properties for an extended period, typically five years or more, to generate wealth through rental income, property appreciation, and tax benefits.
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