REE-4313 Study Guide - Comprehensive Final Exam Guide - Cash Flow, Capitalization Rate, Renting
21 Nov 2018
School
Course
Professor
Document Summary
Real estate investment process: the i(cid:374)vest(cid:373)e(cid:374)t pro(cid:272)ess (cid:894)private i(cid:374)vestors" perspe(cid:272)tives(cid:895) Real estate investment: key participants: the equity investor, the owner, landlord (lessor), borrower (mortgagor, the debt investor, mortgage lender (mortgagee, the user, owner occupant; tenant (lessee, the government, federal, state, and local. This is referred to as the capital sack: funds flow to the highest risk-adjusted return opportunity. Value and price concepts: market value, the most probable price that would be paid for a property under competitive market conditions. Investment value: the value of a property to a particular investor, transaction price, price of a certain quantity of a good or service expressed in terms of the quantity of some other good or service. Investor objectives & strategies: risk, liquidity, holding period, expertise, capital, investor motives. May also be focused on a property size and/or tenant: growth. Identifying properties with high rent and value growth expectations: value.
