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 Renovation Plan is a comprehensive document outlining the scope of work, budget, timeline, and resources required for property improvements, crucial for managing real estate investment projects effectively and maximizing returns.
Rental advertising is the process of promoting an available rental property to attract potential tenants, aiming to minimize vacancy and secure qualified renters efficiently.
Rental income is the total revenue generated from an investment property through rent payments and other fees, before or after deducting operating expenses. It is a critical metric for evaluating a property's profitability and investment viability.
A rental property is real estate purchased with the intent to generate income through tenant rent payments and potential property value appreciation.
Repairs in real estate refer to the work done to fix or restore a property to its original condition or to a functional state, addressing wear and tear, damage, or system failures.
A replacement property is a real estate asset acquired in a 1031 exchange to defer capital gains taxes on the sale of a previous investment property, provided it meets specific "like-kind" and value requirements.
Representations are statements of fact made by one party to induce another into a contract, while warranties are promises that those facts are true, providing a basis for recourse if false.
Resale value is the estimated price a property could sell for in the current market, or at a specific point in the future. It's a key factor for real estate investors to assess potential profits and investment viability.
A reserve price is the minimum amount a seller is willing to accept for a property in an auction. If bids do not reach this price, the seller is not obligated to sell, protecting them from selling below their desired value.
Residential real estate refers to properties used for housing, including single-family homes, multi-family units, condos, and townhouses. It's a popular investment for rental income and appreciation.
A retail center is a commercial property designed for various retail businesses, ranging from small strip malls to large shopping centers, providing goods and services to consumers.
In real estate, retention refers to the strategic act of keeping or holding onto assets, capital, or tenants over time, crucial for long-term wealth building and maximizing investment returns.
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