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Real Estate Investing Strategies

48 cards · 🇺🇸 English

Buy-and-hold, flipping, wholesaling and REITs.

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Buy and hold strategy

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1Buy and hold strategy
Purchasing property with the intention of holding it long-term to generate rental income and benefit from appreciation
2House flipping
Buying undervalued properties, renovating them, and selling quickly for a profit
3BRRRR
Buy, Rehab, Rent, Refinance, Repeat - a strategy to build a rental portfolio using refinancing to recycle capital
4Wholesaling in real estate
Contracting properties at below-market prices and assigning the contract to an end buyer for a fee, without taking ownership
5REIT
Real Estate Investment Trust - a company that owns and operates income-producing real estate, traded like stocks
6Passive real estate investing
Investing in real estate without active management, typically through REITs, crowdfunding, or hiring property managers
71% rule in rental properties
A guideline suggesting monthly rent should be at least 1% of the property's purchase price for good cash flow
850% rule in real estate
A guideline that operating expenses (excluding mortgage) will typically consume 50% of rental income
9Cash flow in rental properties
The net income remaining after all expenses (mortgage, taxes, insurance, maintenance) are paid
10Appreciation in real estate
The increase in property value over time due to market conditions, improvements, or development
11Forced appreciation
Increasing property value through renovations, improvements, or operational changes rather than market forces
12NOI (Net Operating Income)
Total rental income minus operating expenses (excluding mortgage payments)
13Cash-on-cash return
Annual cash flow divided by total cash invested, measuring return on actual money invested
14Leverage in real estate
Using borrowed money (mortgage) to purchase property, amplifying potential returns (and risks)
15FHA loan
A government-backed mortgage requiring as little as 3.5% down, often used by first-time homebuyers
16House hacking
Living in one unit of a multifamily property while renting out the others to offset mortgage costs
17Turnkey property
A fully renovated rental property ready for immediate occupancy and income generation
18Distressed property
A property in poor condition, foreclosure, or urgent sale situation, typically sold below market value
1970% rule in house flipping
Never pay more than 70% of the after-repair value (ARV) minus renovation costs
20ARV (After Repair Value)
The estimated value of a property after all repairs and renovations are completed
21Hard money loan
A short-term, asset-based loan from private lenders with higher interest rates, often used for flips
22Syndication in real estate
Pooling capital from multiple investors to purchase larger properties, typically commercial
23Commercial real estate (CRE)
Property used for business purposes including offices, retail, industrial, and multifamily (5+ units)
24Multifamily real estate
Properties with multiple separate housing units (duplexes, apartments, etc.)
25Triple net lease (NNN)
A lease where the tenant pays property taxes, insurance, and maintenance in addition to rent
26Vacancy rate
The percentage of time a property sits empty, reducing rental income
27Property management
The operation and oversight of real estate, including tenant relations, maintenance, and rent collection
28Positive cash flow
When rental income exceeds all expenses, generating monthly profit
29Negative cash flow
When expenses exceed rental income, requiring the owner to cover the deficit
30Equity in real estate
The difference between property value and the amount owed on the mortgage