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The Complete Guide to Real Estate Jargon: Must-Know Terms for Beginners

Real estate can feel overwhelming, especially with the abundance of industry-specific jargon that gets thrown around. In The Complete Guide to Real Estate Jargon, we simplify the most important terms you need to know, from "appraisal" to "escrow" and "capital gains." Each term is explained with clear examples, making this glossary the perfect tool for anyone new to real estate investing, buying, or selling.

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Other Useful Resources

401(k) Plans

A 401(k) is a retirement savings plan offered by many employers in the U.S. It allows employees to contribute a portion of their paycheck to a tax-advantaged retirement account. Employers often match a percentage of these contributions, helping employees grow their savings faster. Contributions to a traditional 401(k) are made pre-tax, reducing your taxable income today, and taxes are paid when funds are withdrawn in retirement.

Learn more about 401(k) plans and how they work here.

1031 Exchange

A 1031 exchange allows investors to defer capital gains taxes when they sell a property by reinvesting the proceeds into another "like-kind" property. This is a powerful tool for real estate investors who want to continue growing their portfolio without incurring immediate tax liabilities. There are specific rules and timelines involved in 1031 exchanges, so it’s important to plan carefully and consult with professionals.

Read more about 1031 exchanges and their benefits here.

Individual Retirement Accounts (IRA)

An IRA is a personal retirement account that provides tax benefits for individuals looking to save for retirement outside of employer-sponsored plans. There are two main types of IRAs: Traditional and Roth. With a Traditional IRA, contributions are typically tax-deductible, and earnings grow tax-deferred. With a Roth IRA, contributions are made with after-tax dollars, but withdrawals in retirement are tax-free.

To learn more about IRAs, visit this resource.