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 critical tax provision that adjusts the cost basis of an inherited asset to its fair market value on the date of the decedent's death, effectively eliminating capital gains tax on appreciation that occurred during the decedent's lifetime.
A strategic audit in real estate investing is a comprehensive, systematic review of an investor's portfolio, investment strategies, and operational processes to assess performance, identify opportunities, and mitigate risks against current market conditions and long-term goals.
Strategic divestment is the planned sale or disposal of an investment property or portfolio to achieve specific financial or strategic objectives, often driven by market shifts, portfolio rebalancing, or risk mitigation.
Strategic real estate investment is a disciplined, data-driven approach to property acquisition, management, and disposition, aligning each decision with predefined long-term financial goals and comprehensive market analysis.
Strategic refinancing involves proactively restructuring existing real estate debt to achieve specific long-term investment objectives, such as optimizing cash flow, expanding a portfolio, or reducing overall risk exposure.
Stress testing is an advanced financial analysis technique used to evaluate the resilience of a real estate investment or portfolio by simulating the impact of severe, adverse economic and market scenarios on key financial metrics.
Subdivision is the legal process of dividing a single parcel of land into two or more smaller parcels, typically for the purpose of development, sale, or lease. It involves navigating local zoning ordinances, planning regulations, and infrastructure requirements.
Subject-To investing is an advanced real estate strategy where an investor acquires a property by taking over payments on the seller's existing mortgage, without formally assuming the loan or notifying the lender.
Subject-To real estate is an advanced acquisition strategy where an investor takes title to a property with an existing mortgage, agreeing to make payments without formally assuming the loan, leaving the original financing in the seller's name.
A Subscription Agreement is a legal contract between an investor and a private company (or syndicator) outlining the terms for purchasing shares or units in a private offering, commonly used in real estate syndications to formalize capital commitment and ensure regulatory compliance.
A market condition where the quantity of available real estate (supply) does not match the quantity buyers are willing and able to purchase (demand) at current prices, leading to shifts in property values and rents.
Sustainability in real estate refers to the practice of developing, managing, and investing in properties that minimize environmental impact, enhance social well-being, and adhere to strong governance principles, aiming for long-term value creation and resilience.
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