Terms Starting with F
99 terms
Fixer-Upper
A fixer-upper is a property that needs repairs, updates, or renovations—offering value-add potential through forced-appreciation when the work is completed.
Fixtures
Fixtures is a construction and renovation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of fix and flip deals.
Flip Comps
Flip Comps is a deal evaluation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of fix and flip deals.
Flip Profit
Flip profit is the net gain from a fix-and-flip after subtracting purchase price, renovation costs, closing costs, and holding costs from the sale price.
Flip Tax
The flip tax is the aggregate transaction cost of reselling a property—including agent commissions, transfer taxes, title fees, repairs, and staging—that reduces net proceeds and must be factored into any buy-and-sell investment strategy.
Flip Timeline
A flip timeline is the total schedule from purchase to sale—including rehab, listing, and closing—for a fix-and-flip property.
Float-Down
A float-down is an option that allows you to reduce your locked mortgage rate if market rates drop between the time you lock and closing. You pay a fee (or accept a slightly higher initial lock) for the right to "float down" to the lower rate.
Flood Insurance
Flood Insurance is a real estate insurance concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of legal protection asset structuring deals.
Flood Zone
Flood Zone is a real estate insurance concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of market research location analysis deals.
Floor Area Ratio (FAR)
Floor Area Ratio (FAR) is a legal strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of legal protection asset structuring deals.
Floor Plan Optimization
Floor Plan Optimization is a construction and renovation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of small multifamily investing deals.
Flooring
Flooring refers to the finished surface material installed on a property's subfloor — and in rental investing, the right choice balances durability, cost, and tenant appeal.
Forbearance
Forbearance is a formal agreement between a borrower and lender to temporarily reduce or suspend mortgage payments, typically due to financial hardship. It is not forgiveness—the missed payments must eventually be repaid through a repayment plan, deferral, or loan modification.
Force Majeure
Force majeure is a contract clause that excuses one or both parties from performing their obligations when extraordinary events beyond their control—natural disasters, pandemics, wars, government actions—make performance impossible or impracticable.
Forced Appreciation
An increase in property value created directly by the investor through renovations, operational improvements, or rent increases — as opposed to passive market appreciation that happens over time without intervention.
Forced Equity
Forced equity is the increase in a property's value that you create through active improvements—renovations, upgrades, or operational changes—rather than market appreciation.
Foreclosure
Foreclosure is the legal process where a lender seizes a property after the borrower defaults on the loan—the lender sells the property to recover what's owed.
Foreclosure Auction
Foreclosure Auction is a deal evaluation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of market research location analysis deals.
Foreign Qualification
Foreign qualification is the legal requirement to register your out-of-state LLC in every state where it does business—including owning rental property. Form in Wyoming, own in Tennessee? You must file in Tennessee.
Form 1099
Form 1099 is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of tax optimization deals.
Fortress Strategy
The fortress strategy is a multi-layered asset protection structure that combines LLCs, trusts, insurance policies, and corporate entities to shield real estate holdings from lawsuits, creditors, and catastrophic loss.
Foundation Repair
Foundation Repair is a construction and renovation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of value add renovations deals.
Four Horsemen Stress Test
The Four Horsemen Stress Test is a deal analysis framework that evaluates whether a real estate investment can survive four simultaneous worst-case scenarios: doubled vacancy, a 200-basis-point rate increase, a 10% rent decline, and a major capital expenditure event.
Four Percent Withdrawal
The four percent withdrawal rule states that retirees can withdraw 4% of their portfolio annually (adjusted for inflation) with a high probability of not running out of money over 30 years — and real estate investors routinely beat this benchmark.