Terms Starting with I
73 terms
1031 Exchange
A 1031 exchange (IRC Section 1031) lets you sell an investment property and defer capital gains and depreciation recapture by reinvesting the proceeds into a like-kind replacement property of equal or greater value, using a Qualified Intermediary to hold the funds.
Active Investing
Active investing means you directly own, manage, or oversee rental property—you're hands-on with acquisitions, operations, and exit strategy, as opposed to passive investing where you provide capital and others manage.
Anchor Tenant
An anchor tenant is the primary, high-profile tenant in a commercial property—typically the largest lessee by square footage—whose presence attracts other tenants, drives foot traffic, and stabilizes the property's income stream.
Build-to-Suit Exchange
A build-to-suit exchange is a 1031 exchange in which the replacement property is constructed from scratch — you identify land (and planned improvements), the exchange accommodator or titleholder acquires it, construction is completed using your exchange proceeds, and the finished property is transferred to you within the 180-day exchange period.
Compound Interest
Compound interest is interest earned on both the principal and previously earned interest—so your money grows faster over time as each period's gains generate their own gains.
Counter-Cyclical Investing
Counter-cyclical investing is buying investment-property when the real-estate-market is weak—during hypersupply, market-correction, or early recovery-phase—when cap-rate is expanded and others are selling.
Effective Gross Income (EGI)
Effective Gross Income (EGI) is the realistic total income a property generates after subtracting vacancy and credit losses from gross potential income and adding other income sources like laundry, parking, and fees—the actual revenue a property produces before operating expenses.
Fractional Investing
Fractional investing is owning a small share of one or more rental properties through a platform — instead of buying a whole building, you put in a few hundred or thousand dollars and get a piece of the income and appreciation.
IRA Custodian
IRA Custodian is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of passive real estate investing deals.
IRR (Internal Rate of Return)
IRR is the annualized rate of return that makes the net present value of all cash flows—your initial investment, rental income, and sale proceeds—equal to zero.
Identification Period (45 Days)
Identification Period (45 Days) is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of portfolio scaling 1031 exchanges deals.
Identity Verification
Identity Verification is a tenant relations concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of tenant screening system deals.
Illiquid Asset
Illiquid Asset is a real estate investing concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of real estate investing deals.
Impact Fee
Impact Fee 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.
Implied Warranty
Implied Warranty 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.
Improvement 1031 Exchange
Improvement 1031 Exchange is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of portfolio scaling 1031 exchanges deals.
Improvement Exchange
An improvement exchange is a 1031 exchange in which you use the proceeds from your relinquished property not only to acquire a replacement property but also to fund improvements on it — the qualified intermediary (QI) holds title, improvements are made, then the improved property is transferred to you, all within the 180-day exchange period.
Improvement Value
Improvement Value is a property valuation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of first rental property deals.
In-Law Suite
An in-law suite is a secondary living unit within or attached to a single-family home—typically with its own entrance, bedroom, bath, and sometimes a kitchen. It's a common house-hacking strategy for generating rental-income while you live in the main unit.
Income Approach
The income approach values a property by dividing its net operating income (NOI) by a capitalization rate (cap rate)—reflecting what income-oriented buyers will pay for the stream of cash flow.
Income Statement
Income Statement is a real estate accounting concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of real estate investing deals.
Income Tax Return
An income tax return is the annual filing you submit to the IRS (and state) reporting your income, deductions, and tax liability — for real estate investors, that typically includes Schedule E for rentals, Form 4562 for depreciation, and K-1s from partnerships and syndications.
Income Verification
Income Verification is a tenant relations concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of tenant screening system deals.
Income Verification Process
The income verification process is the systematic method landlords use to confirm that a prospective tenant earns sufficient, stable income to afford the rent—typically requiring gross monthly income of 2.5–3x the monthly rent, verified through pay stubs, tax returns, bank statements, or employer confirmation.