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.
Undervaluation in real estate refers to a property being priced below its true market value, presenting a potential opportunity for investors to acquire assets at a discount and realize significant returns.
An unrealized gain is an increase in the value of an asset that an investor still holds, meaning the profit has not yet been converted into cash through a sale. It represents a potential profit that exists on paper.
Unrealized gains and losses represent the theoretical profit or loss on an investment that has not yet been sold, reflecting the difference between its current market value and its original cost basis. These are 'paper' gains or losses until the asset is actually sold.
A mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA) for eligible service members, veterans, and surviving spouses, offering benefits like no down payment and no private mortgage insurance.
Value investing is an investment strategy focused on buying assets, such as real estate, for less than their intrinsic value, with the belief that the market will eventually recognize their true worth.
A value trap in real estate refers to an investment property that appears to be undervalued or a bargain but possesses underlying fundamental issues that will lead to further price depreciation or underperformance.
A real estate investment strategy focused on acquiring underperforming properties and increasing their value through renovations, operational improvements, or repositioning to boost Net Operating Income (NOI).
Vertical integration in real estate is a business strategy where a company controls multiple stages of its supply chain, from acquisition and development to construction, property management, and even financing, to enhance efficiency and profitability.
A vesting schedule outlines the timeline and conditions under which an individual gains full ownership rights to an asset, typically equity or profit interests, often used in real estate partnerships and syndications to align interests.
Volatility in finance measures the degree of variation of a trading price series over time, indicating the rate and magnitude of price changes for an asset or market, crucial for assessing investment risk.
Voting rights in real estate investment grant investors the power to influence decisions regarding the acquisition, management, and disposition of properties or the overall investment vehicle. These rights are typically outlined in partnership agreements, operating agreements, or corporate bylaws.
Warrants in real estate are financial instruments that grant the holder the right, but not the obligation, to purchase an equity stake in a real estate project or entity at a predetermined price within a specified timeframe.
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