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.
Profitability in real estate investing measures an investment's ability to generate financial gain, indicating if the income or sale price exceeds the total costs involved.
Profitability analysis is the process of evaluating a real estate investment's potential to generate financial returns, assessing its viability and attractiveness relative to costs and risks.
Project financing is a long-term, non-recourse or limited-recourse financing structure used to fund large-scale infrastructure, industrial, and real estate projects, where repayment is based solely on the project's future cash flows.
Project management in real estate investing is the systematic process of planning, executing, monitoring, controlling, and closing out a real estate project to achieve specific goals, maximize profitability, and mitigate risks.
A profit distribution mechanism in real estate syndications where the general partner receives a disproportionately higher share of profits after limited partners achieve specific return hurdles.
PropTech, or Property Technology, refers to the application of technology and digital innovation to the real estate industry, streamlining processes like buying, selling, managing, and analyzing properties for greater efficiency and transparency.
Property analysis is the systematic process of evaluating a real estate asset's potential value, profitability, and risks by examining market, financial, physical, and legal factors to guide investment decisions.
Property appreciation is the increase in a real estate asset's value over time, driven by market forces and investor improvements, leading to potential profit upon sale.
Property disposition is the strategic process of selling, transferring, or otherwise divesting an investment property. It involves evaluating market conditions, financial implications, and tax strategies to maximize returns and achieve specific investment goals.
Property management is the professional oversight and operation of real estate, typically rental properties, on behalf of an owner, handling tasks from tenant acquisition to maintenance and financial reporting.
Property readiness refers to the process of preparing a real estate investment property to be suitable for its intended use, such as renting out to tenants or selling to a new owner, ensuring it meets all necessary standards for safety, functionality, and appeal.
Property recording is the official process of filing legal documents related to real estate transactions with a government office, creating a public record of ownership, liens, and other interests to establish legal priority and provide public notice.
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