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 Qualified Intermediary (QI) is a neutral third party that facilitates a 1031 exchange by holding sale proceeds from a relinquished property and using them to acquire a replacement property, preventing the taxpayer from having constructive receipt of funds and ensuring tax deferral.
A Qualified Opportunity Fund (QOF) is an investment vehicle that allows investors to defer, reduce, and potentially eliminate capital gains taxes by reinvesting those gains into designated low-income urban and rural communities called Opportunity Zones.
Quantitative Tightening (QT) is a monetary policy where a central bank reduces its balance sheet by allowing maturing assets to expire without reinvestment, thereby decreasing the money supply and tightening financial conditions to combat inflation.
Quick analysis is a rapid, high-level evaluation of a potential real estate investment property to quickly determine if it's worth pursuing with more detailed due diligence.
A Quiet Title Action is a legal proceeding to establish or confirm a party's ownership of real property against any adverse claims, thereby clearing any clouds on the title and making it marketable.
A legal document used to transfer an interest in real property from one party to another without providing any warranties or guarantees regarding the title's validity or clarity.
A REIT dividend is a regular payment made by a Real Estate Investment Trust (REIT) to its shareholders, representing a share of the income generated from its real estate investments.
A rate buydown is a financing strategy where an upfront fee is paid to reduce the interest rate on a mortgage, either temporarily for the initial years or permanently for the life of the loan. This lowers monthly mortgage payments and enhances affordability.
Raw land is undeveloped property that lacks structures, utilities, or other improvements, often purchased for future development or long-term appreciation.
A real estate asset class refers to a category of real estate properties grouped by their characteristics, use, and investment profile, such as residential, commercial, or industrial properties.
Real estate asset management is the strategic oversight and optimization of real estate investments to maximize their value and achieve specific financial objectives for property owners or investors.
A public sale of real property where buyers bid competitively, often resulting in a quick, transparent transaction with specific terms and conditions.
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