Intermediate terms

REI Learning Resources: Key Terms Collection

Explore a curated collection of key terms that might be helpful when navigating essential real estate investment learning resources. This reference guide clarifies commonly referenced concepts, platforms, and educational approaches to support your investment journey.

Learning Path

Property Appreciation

Property appreciation is the increase in a real estate asset's value over time, driven by market forces and investor improvements, leading to potential profit upon sale.

Beginner11-12 min

Return on Investment

Return on Investment (ROI) is a financial metric that measures the profitability of an investment by comparing the net profit to the initial cost, expressed as a percentage.

Beginner13-14 min

Beginner Investor

A beginner investor is an individual new to real estate investing, typically with limited experience, focused on learning fundamental concepts and starting with lower-risk strategies.

Beginner2-3 min

Landlord

A landlord is an individual or entity that owns real estate and offers it for rent or lease to tenants, undertaking responsibilities from property maintenance to legal compliance and financial management.

Intermediate12-13 min

Conventional Loan

A conventional loan is a mortgage not backed by a government agency, adhering to Fannie Mae and Freddie Mac guidelines, commonly used by real estate investors for various property types.

Intermediate11-12 min

Real Estate Course

A real estate course is an educational program designed to teach individuals about various aspects of the real estate industry, from obtaining a license to advanced investment strategies and property management.

Beginner5 min

Cash-on-Cash Return

Cash-on-Cash Return (CoC) is a real estate investment metric that calculates the annual pre-tax cash flow generated by a property as a percentage of the total cash an investor has invested.

Intermediate15-18 min

BiggerPockets

BiggerPockets is a leading online platform and community for real estate investors, offering extensive educational resources, forums, podcasts, and tools for all experience levels.

Beginner5-6 min

Mortgage

A mortgage is a loan obtained from a lender to purchase real estate, where the property itself serves as collateral for the debt. Borrowers make regular payments, including principal and interest, over a set period until the loan is fully repaid.

Beginner15-18 min

Down Payment

A down payment is an initial upfront payment made when purchasing a property, representing a portion of the total purchase price and reducing the amount of money borrowed through a mortgage.

Intermediate15-18 min

Capitalization Rate

The Capitalization Rate (Cap Rate) is a real estate valuation metric used to estimate the potential rate of return on an investment property, calculated by dividing its Net Operating Income (NOI) by its current market value.

Intermediate14-15 min

Property Manager

A property manager is an individual or company hired by a real estate investor to handle the daily operations, maintenance, and tenant relations for a rental property, aiming to preserve asset value and maximize rental income.

Intermediate13 min

Due Diligence

Due diligence is the critical process of investigating and verifying all material facts about a property and its financials before a real estate acquisition, aiming to identify risks and ensure an informed investment decision.

Intermediate14-15 min

Equity

Equity in real estate is the portion of a property's value that an owner truly owns, free and clear of any outstanding debts or liens. It is calculated as the property's current market value minus the total amount owed on any mortgages or loans.

Beginner12-13 min

Online Real Estate Forum

Online real estate forums are digital communities where investors, agents, and other professionals connect to share knowledge, discuss strategies, and find opportunities in the real estate market.

Beginner6 min

House Hacking

House hacking is a real estate investment strategy where you live in one unit of a multi-unit property or a portion of a single-family home, and rent out the remaining units or rooms to cover your housing expenses.

Intermediate14-15 min

Real Estate Podcast

A real estate podcast is an audio program featuring interviews with investors and experts, offering education, strategies, and market insights for real estate investing.

Beginner5 min

Real Estate Agent and Broker

Real estate agents and brokers are licensed professionals who facilitate property transactions, representing buyers, sellers, or both, and are compensated primarily through commissions.

Beginner14-15 min

Net Operating Income

Net Operating Income (NOI) is a key real estate metric representing a property's annual income after deducting all operating expenses, but before accounting for debt service, income taxes, and capital expenditures.

Intermediate11-12 min

Real Estate Seminar

A real estate seminar is an educational event, often held in person or online, designed to teach individuals about various aspects of real estate investing, market trends, and property management.

Beginner5 min