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.
Short-Term Rental (STR) zoning laws are local ordinances that regulate the use of residential properties for transient lodging, typically for stays under 30 days. These laws dictate where STRs can operate, what permits are required, and how they must be managed, significantly impacting real estate investors.
A side hustle is an additional income-generating activity, often in real estate, undertaken alongside primary employment to earn extra money, gain experience, and build capital for future investments.
Side hustle income refers to additional earnings generated outside of a primary job, strategically utilized by real estate investors to fund down payments, renovations, or build cash reserves, thereby accelerating their investment growth.
A Single-Family Home (SFH) is a detached residential property designed for one household, typically on its own land, offering privacy and direct ownership of the structure and lot. It's a popular asset for real estate investors seeking rental income and appreciation.
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.
A Smart Building is a property that uses integrated technology, such as IoT devices and Building Management Systems (BMS), to automate and optimize operations, improve efficiency, and enhance the experience for occupants and owners.
A smart contract is a self-executing digital agreement with terms directly coded onto a blockchain, enabling automated, immutable, and transparent transactions without intermediaries.
Smart contracts are self-executing agreements with the terms of the agreement directly written into lines of code, residing on a blockchain. They automate, verify, and enforce the negotiation or performance of a contract, eliminating the need for intermediaries.
A smart lock is an electronic and mechanical locking device that allows users to control access to a property remotely using a smartphone, keypad, or biometric data, enhancing security and convenience for real estate investors.
Soft costs are indirect expenses in real estate projects that are not directly related to physical construction, including architectural fees, legal costs, permits, financing fees, and project management.
Solvency ratios measure an investor's ability to meet long-term financial obligations, indicating the overall financial health and stability of their real estate portfolio.
The Sortino Ratio is a risk-adjusted performance measure that differentiates harmful volatility from total volatility by focusing solely on downside deviation below a specified minimum acceptable return (MAR). It is particularly valuable for real estate investors assessing asymmetric risk profiles.
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