RE-160 Lecture Notes - Lecture 18: Mutual Fund, Financial Risk, Opportunity Cost

• School: Diablo Valley College
• Department: Business Accounting/Management/Marketing/Real Estate
• Course: RE-160
• Professor: burnaford

Document Summary

Investing in real estate: part 1 overview: risk return. Outline of real estate investing: real estate is a popular investment. Whichever way the overall market turns, the real estate investment market continues to initiate innovative and attractive investment strategies. Property analysis: compared to residential property what determines the price and. Investor motivations: cash flow, appreciation, portfolio diversification, leverage (opm, hedging against inflation, tax benefits, benefit to descendants. Advantages and disadvantages: rate of return may justify borrowing, potential stable long term income flow, potential for greater control of investment than stocks or bonds, appreciation inflation intrinsic value increase related to property or market area changes. Advantages - leverage: goal: small down payment, low interest rate, and long-term payments, equity increase (greater on larger properties, pyramiding using one property to acquire more, pyramiding through sale, pyramiding through refinance. (by holding on to properties the investor doesn"t have to deal with capital gains taxes)