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Search Results for "Leverage"

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Terms: 19
Term
Intermediate

Leverage

Leverage in real estate is the use of borrowed capital, typically through mortgages, to finance property purchases and amplify potential investment returns.

Also known as:FinancialLeverageDebtLeverageGearingBorrowedCapital
15-18 min
Term
Intermediate

Debt Capacity

Debt capacity is the maximum amount of debt an individual or entity can prudently take on while maintaining financial stability and meeting repayment obligations. For real estate investors, it's a critical metric for assessing borrowing limits, managing risk, and planning portfolio expansion.

Also known as:BorrowingCapacityLeverageLimitCreditCapacityMaximumDebtLoad
5-6 min
Term
Intermediate

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.

Also known as:CoCReturnEquityDividendRateLeveragedCash-on-CashCash-on-CashYield
15-18 min
Term
Intermediate

Delegation

Delegation in real estate investing involves strategically assigning specific tasks, authority, and responsibility to other individuals or entities, such as property managers, virtual assistants, or contractors. This practice enables investors to optimize their time, leverage specialized expertise, and scale their portfolios more efficiently.

Also known as:TaskAssignmentOutsourcingRealEstateTasksDistributingResponsibilitiesWorkDistribution
5-6 min
Term
Intermediate

Deep Work for Real Estate Investors

Deep Work refers to professional activities performed in a state of distraction-free concentration that push your cognitive capabilities, leading to new value creation and skill improvement for real estate investors.

Also known as:FocusedProductivityforInvestorsStrategicConcentrationinREIHigh-LeverageWorkFocusIntentionalFocusforInvestors
5-6 min
Term
Intermediate

Buyer's Market

A buyer's market is a real estate condition where the supply of available properties exceeds the demand from buyers, giving buyers more leverage in negotiations and leading to potentially lower prices and more favorable terms.

Also known as:SoftMarketBuyer-CentricMarketSlowMarketHighInventoryMarket
15-18 min
Term
Intermediate

Mezzanine Financing

Mezzanine financing is a hybrid debt-equity instrument used in real estate to bridge the gap between senior debt and sponsor equity, offering higher leverage at a higher cost due to its subordinated position in the capital stack.

Also known as:MezzanineDebtMezzanineLoanMezzanineCapitalSubordinatedDebt
13-16 min
Term
Beginner

Professional Network

A professional network in real estate investing is a group of contacts, including other investors, agents, lenders, and contractors, who provide support, resources, and opportunities.

Also known as:RealEstateNetworkIndustryConnectionsInvestorNetworkBusinessContacts
2-3 min
Term
Beginner

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.

Also known as:REIPodcastRealEstateInvestingPodcastPropertyInvestingPodcastRealEstateAudioShow
5 min
Term
Intermediate

Interest-Only Loan

An interest-only loan is a debt where the borrower pays only the interest on the principal balance for a set period, with no principal reduction during that time. This results in lower initial monthly payments.

Also known as:IOLoanInterest-OnlyMortgageNon-AmortizingLoanBulletLoan
10-11 min
Term
Intermediate

Buyer's List

A Buyer's List is a database of pre-qualified individuals or entities actively seeking to purchase investment properties, detailing their specific criteria and contact information, used to facilitate quick and efficient property dispositions.

Also known as:InvestorBuyerListCashBuyerListWholesalerBuyerListPropertyBuyerDatabase
11-12 min
Term
Intermediate

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.

Also known as:CashDownInitialEquityEquityContributionUpfrontCapital
15-18 min
Term
Intermediate

Property Inspection

A property inspection is a visual examination of a property's condition by a qualified professional to identify defects, safety hazards, and maintenance needs before purchase.

Also known as:HomeInspectionRealEstateInspectionPre-PurchaseInspectionBuildingInspection
13-14 min
Term
Intermediate

Predictive Analytics

Predictive analytics in real estate utilizes historical data, statistical models, and machine learning to forecast future market trends, property values, and investment outcomes, enabling proactive decision-making for investors.

Also known as:RealEstatePredictiveModelingAI-drivenMarketForecastingData-drivenRealEstateInsightsAlgorithmicMarketPrediction
5-6 min
Term
Intermediate

Financing Strategy

A financing strategy is a comprehensive plan detailing how a real estate investor will fund property acquisitions, manage capital, and structure deals to achieve investment objectives while controlling risk.

Also known as:CapitalStackManagementInvestmentFundingPlanDealStructuringApproachFundingStrategy
5 min
Term
Intermediate

Investment Capacity

Investment capacity is an investor's total ability to acquire and manage new real estate assets, considering financial resources, debt access, risk tolerance, and operational capabilities. It dictates the scale and pace of portfolio expansion.

Also known as:InvestorBuyingPowerCapitalDeploymentCapabilityRealEstateInvestmentPotential
5 min
Term
Intermediate

Outsourcing

Outsourcing in real estate involves delegating specific tasks or functions to external third-party providers to improve efficiency, reduce costs, and allow investors to focus on core investment strategies.

Also known as:DelegationofTasksThird-PartyServicesContractingOutExternalization
5 min
Term
Intermediate

401(k) Loan

A 401(k) loan allows participants to borrow a portion of their vested retirement savings, repaying the principal and interest back into their own account, often used by real estate investors for short-term capital needs like down payments or rehabilitation.

Also known as:RetirementPlanLoanQualifiedPlanLoan401kLoan
6 min
Term
Intermediate

Seasonality

Seasonality in real estate refers to predictable fluctuations in market activity, property values, and rental rates that occur at specific times of the year, driven by factors like weather, holidays, and school calendars.

Also known as:SeasonalTrendsMarketFluctuations(Seasonal)Short-termMarketCycles
5 min