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Real Estate InvestmentReal Estate Investment
Chapter 1Chapter 1
Boris Gantsevich Real Estate asBoris Gantsevich Real Estate as
an Investmentan Investment
息 2011 Cengage Learning
Key TermsKey Terms
Appreciation
Carrying
Charges
Collateral
Commercial
Land
Default Risk
Feasibility Report
Great Recession
Inflation Risk
Interest Rate
Boris Gantsevich Real Estate Agent
息 2011 Cengage Learning
Key Terms
Liquid
Liquidity
Living Patterns
Option
Purchase Money
Mortgage
Raw Land
Tangible
Value Gain
Boris Gantsevich Real Estate Agent
息 2011 Cengage Learning
Opportunities in Real EstateOpportunities in Real Estate
Real Estate Compared to
Other Investments
Investments and
Investment Values
IncomeIncome
AppreciationAppreciation
Value GainValue Gain
Boris Gantsevich Real Estate Agent
息 2011 Cengage Learning
Investment OpportunitiesInvestment Opportunities
For income onlymortgage loans
For appreciation onlyholding
undeveloped land
For value gain onlydevelopment of
building lots
For all threeincome properties-
apartments, offices, retail
Boris Gantsevich Real Estate Agent
息 2011 Cengage Learning
The Great RecessionThe Great Recession
Bubble in residential real estate
Congressional mandates to assist
the least creditworthy
Rapid fall in home values
Recovery could present great
opportunities
Boris Gantsevich Real Estate Agent
息 2011 Cengage Learning
Advantages of Real Estate asAdvantages of Real Estate as
an Investmentan Investment
Returns ON Investment
Income
Appreciation and capital gains
Other advantages
Tax shelters
Use as collateral
Land is tangible
Pride of ownership
Boris Gantsevich Real Estate Agent
息 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
Boris Gantsevich Real Estate Agent
息 2011 Cengage Learning
More Disadvantages
Heterogeneity of the Product
Long-Term Investment
Management Requirements
Government Restrictions and Legislation
Changing Efficiency of the Real Estate
Market
Boris Gantsevich Real Estate Agent
息 2011 Cengage Learning
Comparison of Real Estate
to Other Investment Opportunities
Precious metals
Investment in self
Bonds
Mortgages
Stocks
Commodities
CDs
Collectibles
Boris Gantsevich Real Estate Agent
息 2011 Cengage Learning
Value of Land
Mining
Cultivation
Drilling
Development
Boris Gantsevich Real Estate Agent
息 2011 Cengage Learning
Raw Land
Working Patterns
Traffic Patterns
Living Patterns
Land Development
Boris Gantsevich Real Estate Agent
息 2011 Cengage Learning
Categories of Land Use
Single Family Residential
Multi-Family Residential
(Apartments)
Commercial Land
Industrial Land
Boris Gantsevich Real Estate Agent
息 2011 Cengage Learning
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 Agent
息 2011 Cengage Learning
Preliminary Evaluation Cost
Option costs
Feasibility report
Planning fees
Environmental study
Appraisal costs
Boris Gantsevich Real Estate Agent
息 2011 Cengage Learning
Organization Costs
Legal costs
Accounting fees
Architectural and engineering costs
Financing charges
Closing costs
Disposition costs
Boris Gantsevich Real Estate Agent

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Boris gantsevich describes how real estate investment is going to change your business strategies.

  • 1. Real Estate InvestmentReal Estate Investment Chapter 1Chapter 1 Boris Gantsevich Real Estate asBoris Gantsevich Real Estate as an Investmentan Investment
  • 2. 息 2011 Cengage Learning Key TermsKey Terms Appreciation Carrying Charges Collateral Commercial Land Default Risk Feasibility Report Great Recession Inflation Risk Interest Rate Boris Gantsevich Real Estate Agent
  • 3. 息 2011 Cengage Learning Key Terms Liquid Liquidity Living Patterns Option Purchase Money Mortgage Raw Land Tangible Value Gain Boris Gantsevich Real Estate Agent
  • 4. 息 2011 Cengage Learning Opportunities in Real EstateOpportunities in Real Estate Real Estate Compared to Other Investments Investments and Investment Values IncomeIncome AppreciationAppreciation Value GainValue Gain Boris Gantsevich Real Estate Agent
  • 5. 息 2011 Cengage Learning Investment OpportunitiesInvestment Opportunities For income onlymortgage loans For appreciation onlyholding undeveloped land For value gain onlydevelopment of building lots For all threeincome properties- apartments, offices, retail Boris Gantsevich Real Estate Agent
  • 6. 息 2011 Cengage Learning The Great RecessionThe Great Recession Bubble in residential real estate Congressional mandates to assist the least creditworthy Rapid fall in home values Recovery could present great opportunities Boris Gantsevich Real Estate Agent
  • 7. 息 2011 Cengage Learning Advantages of Real Estate asAdvantages of Real Estate as an Investmentan Investment Returns ON Investment Income Appreciation and capital gains Other advantages Tax shelters Use as collateral Land is tangible Pride of ownership Boris Gantsevich Real Estate Agent
  • 8. 息 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 Boris Gantsevich Real Estate Agent
  • 9. 息 2011 Cengage Learning More Disadvantages Heterogeneity of the Product Long-Term Investment Management Requirements Government Restrictions and Legislation Changing Efficiency of the Real Estate Market Boris Gantsevich Real Estate Agent
  • 10. 息 2011 Cengage Learning Comparison of Real Estate to Other Investment Opportunities Precious metals Investment in self Bonds Mortgages Stocks Commodities CDs Collectibles Boris Gantsevich Real Estate Agent
  • 11. 息 2011 Cengage Learning Value of Land Mining Cultivation Drilling Development Boris Gantsevich Real Estate Agent
  • 12. 息 2011 Cengage Learning Raw Land Working Patterns Traffic Patterns Living Patterns Land Development Boris Gantsevich Real Estate Agent
  • 13. 息 2011 Cengage Learning Categories of Land Use Single Family Residential Multi-Family Residential (Apartments) Commercial Land Industrial Land Boris Gantsevich Real Estate Agent
  • 14. 息 2011 Cengage Learning 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 Agent
  • 15. 息 2011 Cengage Learning Preliminary Evaluation Cost Option costs Feasibility report Planning fees Environmental study Appraisal costs Boris Gantsevich Real Estate Agent
  • 16. 息 2011 Cengage Learning Organization Costs Legal costs Accounting fees Architectural and engineering costs Financing charges Closing costs Disposition costs Boris Gantsevich Real Estate Agent