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 legal document that transfers property ownership with the highest level of guarantee, where the grantor warrants clear title against all defects, past and present.
Water conservation in real estate involves implementing practices and technologies to reduce water consumption in properties, leading to lower utility bills, increased property value, and a reduced environmental footprint.
Waterfall distribution is a tiered profit-sharing structure in real estate syndications, dictating how cash flow and profits are allocated among investors and sponsors based on predefined hurdle rates and preferred returns.
Wealth accumulation is the process of increasing one's net worth over time through consistent saving, strategic investing, and growing assets, often with a focus on achieving long-term financial security and freedom.
Wealth management is a comprehensive financial service that combines financial planning, investment portfolio management, and other aggregated financial services to manage the wealth of high-net-worth individuals and families.
Wire fraud in real estate involves deceptive schemes to trick individuals into electronically transferring funds to fraudulent accounts, often by impersonating legitimate parties in a transaction.
Work-life balance in real estate investing refers to effectively managing the demands of your investment activities alongside your personal life, ensuring sustainable success and well-being.
Work-in-Process (WIP) in real estate refers to the value of a property undergoing development, renovation, or construction, including all accumulated costs until completion. It represents an asset on the balance sheet for projects not yet ready for sale or use.
Worst-case scenario planning is a strategic process in real estate investing that identifies and quantifies the most severe potential risks and their financial impacts, allowing investors to develop mitigation strategies and contingency plans to protect their capital.
A wrap-around mortgage is a form of seller financing where a new, junior loan from the seller to the buyer includes the balance of an existing, underlying mortgage, with the seller remaining responsible for payments on the original loan.
A Wyoming Holding Company is a legal entity, typically a Limited Liability Company (LLC), formed in Wyoming to hold assets, often real estate, for enhanced asset protection, privacy, and potential tax advantages due to Wyoming's favorable corporate laws.
Xeriscaping is a landscaping method that reduces or eliminates the need for supplemental irrigation, focusing on water conservation through drought-tolerant plants and efficient design. For real estate investors, it translates to lower operating costs, enhanced property value, and increased sustainability.
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