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.
Space-as-a-Service (SaaS) is a real estate operational model that offers flexible, amenity-rich physical spaces on demand, integrating technology and hospitality to provide a seamless user experience beyond traditional long-term leases.
A special dividend is a non-recurring distribution of company earnings to shareholders, typically paid out from a significant one-time event like an asset sale or extraordinary profit.
A Special Purpose Vehicle (SPV) is a legally separate entity, often a subsidiary, created by a parent company to isolate financial risk, facilitate specific transactions, or manage assets and liabilities for a particular project, commonly used in real estate for securitization or complex financing.
A legal document transferring property ownership with a limited warranty, where the grantor guarantees the title only against defects that arose during their period of ownership.
A legal remedy in contract law, particularly real estate, where a court orders a party to fulfill their contractual obligations, rather than merely paying monetary damages, due to the unique nature of the asset.
Speculative demand in real estate refers to the purchase of properties primarily driven by the expectation of future price appreciation, rather than for immediate use, rental income, or long-term intrinsic value.
Speculative investing in real estate involves making high-risk investments with the primary goal of profiting from short-term market fluctuations or anticipated future events, rather than long-term income generation or intrinsic value.
Speculative land investing involves purchasing undeveloped land with the expectation of profiting from a future increase in its value due to external factors like development or zoning changes, rather than from immediate income.
A real estate Sponsor is the active manager of a real estate investment, typically a syndication, responsible for identifying, acquiring, managing, and exiting the property, while also raising capital from passive investors.
The Spousal REPS Strategy allows married couples filing jointly to qualify for Real Estate Professional Status (REPS) if one spouse materially participates in real estate activities, enabling the deduction of passive real estate losses against active income.
Staged funding is a financing method where a lender disburses loan proceeds incrementally as a real estate project progresses, rather than providing the full amount upfront. This approach is common in construction and rehabilitation projects.
The Statement of Cash Flows (SCF) is a financial report detailing the cash generated and used by a business or investment property over a period, categorized into operating, investing, and financing activities. It provides crucial insights into liquidity and solvency for real estate investors.
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