Unbelievable facts about real estate investment through boris gantsevich

Real Estate Investment Chapter 1

Boris Gantsevich Real Estate as an Investment

Key Terms Appreciation Carrying Charges Collateral Commercial Land Default Risk

Feasibility Report Great Recession Inflation Risk Interest Rate

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Key Terms Liquid Liquidity Living Patterns Option

Purchase Money Mortgage Raw Land Tangible Value Gain

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Opportunities in Real Estate Real Estate Compared to Other Investments

Investments and Investment Values Income Appreciation Value Gain

BorisŠGantsevich Real Estate Agent 2011 Cengage Learning

Investment Opportunities For income only—mortgage loans For appreciation only—holding undeveloped land For value gain only—development of building lots For all three—income propertiesapartments, offices, retail

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The Great Recession Bubble in residential real estate Congressional mandates to assist the least creditworthy Rapid fall in home values Recovery could present great opportunities

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Advantages of Real Estate as an Investment Returns ON Investment Income Appreciation and capital gains

Other advantages Tax shelters Use as collateral Land is tangible Pride of ownership BorisŠ Gantsevich Real Estate Agent 2011 Cengage Learning

Disadvantages of Real Estate as an Investment Overall Inefficiency of the R. E. Market Transaction Costs Lack of liquidity Restricted Information Flows Limited Numbers of Buyers and Sellers

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More Disadvantages Heterogeneity of the Product Long-Term Investment Management Requirements Government Restrictions and Legislation Changing Efficiency of the Real Estate Market

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Comparison of Real Estate to Other Investment Opportunities Precious metals Investment in self Bonds Mortgages Stocks Commodities CDs Collectibles Š 2011 Cengage Learning Agent Boris Gantsevich Real Estate

Value of Land Cultivation Mining Drilling Development

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Raw Land Working Patterns Traffic Patterns Living Patterns Land Development

Boris Gantsevich Real Estate Agent Š 2011 Cengage Learning

Categories of Land Use

Single Family Residential Multi-Family Residential (Apartments) Commercial Land Industrial Land

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Acquiring Real Property The purchase price Cost of search Cash Price Extended payment terms Carrying charges Taxes Interest Maintenance, Utility stand-by charges Insurance Boris Gantsevich Real Estate Š 2011 Cengage Learning Agent

Preliminary Evaluation Cost Option costs Feasibility report Planning fees Environmental study Appraisal costs Š 2011 Cengage LearningAgent Boris Gantsevich Real Estate

Organization Costs Legal costs Accounting fees Architectural and engineering costs Financing charges Closing costs Disposition costs

Boris Š Gantsevich Estate Agent 2011 Cengage Real Learning