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 tourist destination market refers to real estate investment opportunities in areas characterized by high visitor traffic, often driven by leisure, business, or cultural attractions, leading to demand for short-term rentals, hotels, and related services.
Tracing rules are legal and equitable principles used to identify and recover misappropriated assets, particularly in cases of commingled funds, fraud, or breach of fiduciary duty within complex investment structures like real estate syndications or partnerships.
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.
Transaction structure refers to the legal and financial framework through which a real estate deal is organized, defining how assets are acquired, financed, and owned.
The Treasury Stock Method (TSM) is an accounting technique used to calculate diluted earnings per share (EPS) by assuming that proceeds from the exercise of in-the-money options and warrants are used by the company to repurchase its own common stock at the average market price.
A trigger event in real estate is a predefined condition or occurrence that, when met, automatically initiates a specific action or consequence outlined in a contract, loan agreement, or other legal document.
A Triple Net Lease (NNN) is a commercial real estate lease where the tenant pays base rent plus property taxes, building insurance, and common area maintenance, making it a highly passive investment for landlords.
A triplex is a multi-family residential property containing three separate living units, offering investors diversified rental income and potential for owner-occupant house hacking.
A Trustee's Sale is a public auction of a property to satisfy a defaulted debt, conducted by a trustee under a deed of trust without court intervention, common in non-judicial foreclosure states.
The Two-Bucket Strategy is a real estate investment approach that divides an investor's capital into two distinct allocations: one for stable, income-generating assets and another for higher-risk, growth-oriented opportunities. This method aims to balance immediate cash flow with long-term capital appreciation.
An Umbrella Partnership Real Estate Investment Trust (UPREIT) is a structure where a publicly traded REIT owns its properties through a controlling interest in a private operating partnership (OP), allowing property owners to contribute real estate in exchange for OP units on a tax-deferred basis.
An underlying mortgage is an existing mortgage loan that remains on a property when additional financing is layered on top or when the property is sold using creative financing methods like "subject-to" deals.
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