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Intermediate45 minutes9 terms

REI Disintermediation: Key Terms Collection

This curated collection offers key terms that might be helpful when exploring disintermediation in real estate investment. It's designed as a quick reference for commonly referenced concepts, not a comprehensive guide. Understanding this terminology can provide clarity on evolving investment models.

Term Collection

1

Peer-to-Peer Lending

Peer-to-Peer (P2P) lending connects individual investors directly with borrowers, often facilitated by online platforms, bypassing traditional financial institutions. In real estate, it provides alternative financing for projects and allows investors to fund loans for properties.

Intermediate5-6 min
2

Direct Ownership

Direct ownership in real estate refers to an individual or entity holding legal title to a property, granting full control over its acquisition, management, and disposition. This method offers complete autonomy but also carries direct responsibility for all aspects of the investment.

Intermediate5-6 min
3

Blockchain Technology

Blockchain technology is a decentralized, distributed ledger system that records transactions across a network of computers, ensuring immutability, transparency, and security through cryptographic hashing and consensus mechanisms, fundamentally altering real estate transaction paradigms.

Advanced5 min
4

Real Estate Syndication

Real estate syndication is a private equity strategy where multiple investors pool capital to acquire and manage large-scale real estate assets, typically led by a sponsor (General Partner) for passive Limited Partners.

Advanced14-15 min
5

PropTech

PropTech, or Property Technology, refers to the application of technology and digital innovation to the real estate industry, streamlining processes like buying, selling, managing, and analyzing properties for greater efficiency and transparency.

Beginner5 min
6

Smart Contracts

Smart contracts are self-executing agreements with the terms of the agreement directly written into lines of code, residing on a blockchain. They automate, verify, and enforce the negotiation or performance of a contract, eliminating the need for intermediaries.

Advanced5-6 min
7

Fractional Ownership

Fractional ownership allows multiple unrelated parties to share in the ownership of a high-value asset, typically real estate, dividing costs, usage, and appreciation proportionally.

Intermediate5-6 min
8

Equity Crowdfunding

Equity crowdfunding allows multiple investors to collectively fund real estate projects through online platforms, receiving an equity stake and sharing in potential profits and appreciation. It democratizes access to real estate investments by lowering entry barriers.

Intermediate13-16 min
9

Disintermediation

Disintermediation is the process of removing intermediaries from a transaction or supply chain, allowing direct interaction between parties. In real estate, this often means investors and borrowers or sellers engaging directly, bypassing traditional financial institutions, brokers, or other middlemen.

Advanced16-17 min

Common Questions