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.
Real estate retirement planning involves strategically incorporating real estate investments into a broader retirement portfolio to generate income, build wealth, and achieve long-term financial security.
A real estate seminar is an educational event, often held in person or online, designed to teach individuals about various aspects of real estate investing, market trends, and property management.
Real estate syndication is a private equity strategy where multiple investors pool capital to acquire and manage large-scale real estate assets, typically led by a sponsor (General Partner) for passive Limited Partners.
Documented, repeatable steps and procedures that standardize operations, enhance efficiency, and enable scalability in a real estate investment business.
Real estate tax credits are direct dollar-for-dollar reductions in federal or state income tax liability, designed to incentivize specific real estate activities such as affordable housing development, historic preservation, or renewable energy installations.
Real estate tax planning involves strategically managing real estate investments to minimize tax liabilities and maximize after-tax returns, utilizing various deductions, deferrals, and entity structures.
Real Estate Tokenization is the process of converting real estate assets into digital tokens on a blockchain, representing fractional ownership or economic rights, and enabling enhanced liquidity and accessibility for investors.
A real estate transaction is the comprehensive process of buying, selling, or transferring ownership of real property, involving multiple legal, financial, and administrative steps from initial agreement to final closing.
A real estate trust is a legal arrangement where a property owner transfers title to a trustee, who holds and manages the property for the benefit of designated beneficiaries, offering advantages like privacy, asset protection, and streamlined estate planning.
The Real Estate Value Chain describes the sequential stages involved in creating, enhancing, and realizing value from real estate assets, spanning from initial concept to final disposition.
Real estate wholesaling is an investment strategy where an investor contracts a property from a motivated seller and then assigns that contract to an end buyer for a fee, without ever taking ownership of the property.
Real Options Analysis (ROA) is an advanced valuation methodology that applies financial option pricing theory to real assets and investment opportunities, quantifying the value of managerial flexibility to adapt to future uncertainties.
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