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 shared desk is a non-dedicated workspace in a coworking or flexible office environment, used by different individuals at different times, often on a first-come, first-served basis. It offers flexibility and cost savings compared to traditional office leases.
A Shareholder Agreement is a legally binding contract among the shareholders of a corporation, outlining their rights, responsibilities, and obligations, particularly concerning company operations, share transfers, and dispute resolution.
A Sheriff's Deed is a legal document that transfers ownership of real property after a court-ordered public sale, typically due to foreclosure or judgment enforcement, offering no title warranties to the buyer.
A sheriff's sale is a public auction of property, typically real estate, conducted by a sheriff's department to satisfy a court judgment, such as a mortgage foreclosure or unpaid taxes.
A real estate transaction where the lender agrees to accept a mortgage payoff amount less than what is owed, typically to avoid foreclosure and mitigate losses.
Short-term capital refers to funds or assets that are readily available for immediate use or are expected to be converted into cash within one year, crucial for covering operational expenses, bridging financing gaps, or seizing fleeting investment opportunities in real estate.
Short-term capital gains are profits from the sale of an asset, such as real estate, held for one year or less, and are taxed at an investor's ordinary income tax rate.
A short-term lease is a rental agreement typically lasting less than six months, commonly used for vacation rentals, corporate housing, or temporary stays, offering flexibility but often requiring more intensive management.
A property rented out for short periods, typically less than 30 days, to guests for temporary stays, often managed through platforms like Airbnb or Vrbo.
Short-Term Rental Arbitrage is an investment strategy where an individual leases a property long-term and then subleases it on a short-term basis, typically through platforms like Airbnb, to profit from the difference in rental rates.
Short-term rental permitting involves obtaining necessary licenses and adhering to local regulations for operating properties as vacation rentals, ensuring legal compliance and avoiding penalties.
A Short-Term Rental (STR) Property Manager is a professional or company that handles all operational aspects of managing properties rented for short periods, such as vacation homes or Airbnb units, aiming to maximize owner income and ensure positive guest experiences.
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