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 motivated seller is a property owner who needs to sell quickly due to urgent circumstances, often prioritizing speed and convenience over achieving the highest possible market price.
Multi-family investing involves acquiring properties with multiple residential units to generate rental income, benefit from economies of scale, and achieve long-term appreciation. It's a strategy for diversifying income and scaling a real estate portfolio.
A multi-family property is a residential building containing two or more separate dwelling units, offering investors multiple income streams from different tenants.
Multifamily construction involves the development and building of residential properties designed to house multiple families or tenants, such as apartment complexes, condominiums, or townhouses, often for investment purposes.
A multifamily loan is a type of commercial real estate financing used to purchase, refinance, or develop properties with five or more residential units, distinct from traditional single-family mortgages.
Multiple offers describe a real estate scenario where a property receives purchase proposals from more than one prospective buyer, often simultaneously, indicating high demand and competition.
Negotiation in real estate is the strategic process of discussing and agreeing upon the terms and conditions of a property transaction, aiming to achieve mutually beneficial outcomes for all parties involved.
Net Asset Value (NAV) represents the total value of an entity's assets minus its liabilities, providing a per-share or per-unit value for investors in funds or syndications.
Net Income from Discontinued Operations represents the profit or loss from a segment of a business that has been disposed of or is classified as held for sale, reported separately on the income statement after tax.
Net Operating Income (NOI) is a key real estate metric representing a property's annual income after deducting all operating expenses, but before accounting for debt service, income taxes, and capital expenditures.
Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and outflows, used to evaluate the profitability of a potential investment by accounting for the time value of money.
A real estate networking event is a specialized gathering where investors and professionals connect to share insights, build relationships, and discover investment opportunities within the real estate sector.
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