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Real Estate Chapter 17

Terms

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5 objectives that motivate of investors
1. safety of principal
2. protection against inflation
3. Liquidity
4. increased income
5. tax advantages
An __________ is the outlay of an investor's money in anticipation of income or profit
investment
An investor uses some of his own money called ______ and ________ _____
equity and borrowed funds
Investors may choose to invest in real estate through a _______ ___________
Limited Partnership
this provides a means for individuals to pool resources for investment in a professionally managed portfolio of real property and must be purchased through a stockbroker
(REIT) Real estate investment trust
a lack of proper maintenance is referred to as ________ ___________
deferred maintenance
5 advantages of investing in real estate
good rate of return
tax advantages
hedge against inflation
leverage
equity
_________ refers to the aiblity to sell an investment quickly without the loss of one's capital
liquidity
one of the external forces affecting a property are the _____ and ________ _________
local and national economies
the economic characteristic for the preference by people for a certain location._____
situs
give two examples of destination property
banks and barbershops
origin properties are _____ activities in any analysis of a community's economic base
export
appraisers and investors use square feet, front feet or acres as _____ __ __________
units of comparison
other physical characteristic of a site that deserve an investor's consideration are related to __________
topography
_________ _____ is the worth of a building to an individual investor based on their standards for reaching their goals
investment value
3 considerations that influence a buildings investment value
exterior
interior
operating expenses
investors in real estate are investing in more than land buildings and equipment. they are investing in a bundle of _____ _______ and __________ _________
legal rights and
protected interests
____ is the chance of losing all or part of an investment
Risk
______ ____ is risk that can be transferred to an insurer
static risk
_______ ____ is risk that arises from the continual change in the business environment
dynamic risk
_________ is the use of borowed funds to finance the purchase of an asset
leverage

Deck Info

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