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 market correction is a short-term decline of 10% to 20% in the value of a market index or asset prices from their recent peak, often signaling a temporary pause or reversal in an upward trend.
Real estate market cycles are the recurring patterns of supply and demand fluctuations that influence property values, rents, and construction activity over several years.
Market liquidity in real estate refers to the ease with which a property can be converted into cash without significantly impacting its price. It's a critical factor for investors assessing the flexibility and risk of their real estate holdings.
Market research in real estate is the systematic process of gathering, analyzing, and interpreting data about a specific market to make informed investment decisions, identify opportunities, and mitigate risks.
Market risk refers to the possibility of losses in real estate investments due to factors affecting the overall market, rather than specific property issues. These broad economic forces can impact property values, rental income, and investor returns.
Market sustainability in real estate refers to the long-term viability and stability of a market, indicating its capacity to maintain growth, attract investment, and support property values over extended periods without significant volatility or collapse.
Market timing in real estate involves attempting to predict future market movements to buy or sell assets at optimal points, aiming to maximize returns by capitalizing on cyclical trends and economic indicators.
A Mastermind Group is a peer-to-peer mentoring and accountability concept where real estate investors collaborate to share insights, solve problems, and support each other's growth and investment goals.
The Maximum Allowable Offer (MAO) is the highest price a real estate investor can pay for a property while still achieving their target profit after all projected costs.
The maximum purchase price is the highest amount an investor can pay for a property while still meeting their desired financial objectives and investment criteria, considering all costs and financing.
Member Acquisition Cost (MAC) is a key metric in real estate investment platforms and syndications, representing the total cost incurred to acquire a new investor or member. It encompasses all marketing, sales, and operational expenses directly attributable to bringing a new investor into a fund or platform.
A crucial metric measuring the percentage of existing members or tenants that an organization or property successfully retains over a specific period, directly impacting long-term profitability and operational efficiency in real estate.
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