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Methods of acquiring real estate week 3 fin591

Methods of acquiring real estate week 3 fin591

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Running Head: METHODS OF ACQUIRING REAL ESTATE1

Methods of Acquiring Real Estate

University of Phoenix

FIN591

February 1, 2020

Methods of Acquiring Real Estate

In the past, commercial real estate investors had limited resources and knowledge about

the investment; only a few elites would have access to the resources,resulting in relatively high

risk and high reward market. However, recently there are more ways to be involved in

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METHODS OF ACQUIRING REAL ESTATE2

commercial real estate covering more risks and rewards than before. Here are some of the ways

real estate investors acquirereal estate properties today.

Acquire Commercial Properties.

Once a property has been established and proven to provide adequate cash flow, this

investment method focuses on preserving and improving the cash flow and property valuation

through leasing, managing, and financing it well. However, it has relatively high risks as the

investor can make huge losses through mismanagement and make substantial profits when

smartly invested.

Develop Commercial Properties

Real estate investors applying this method are prone to high risks andincreased rewards

since developing a commercial property like an office building needsdirect experience and good

knowledge of the target market. A deep understanding of financing, planning, construction,

approval, and leasing can result in high investment rewards.

Private Equity

This investment method in commercial real estate has relatively lower risks as an expert

is assigned to manage the funds through bot developing and acquiring the properties. In this case,

an investor invests their assets into a private fund or with a crew of investors who preserve and

increase capital in the market (Del Giudice et al., 2017). Time and skill are not significant

requirements here; however, it's limited to investors with huge capital to invest.

Leasing

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Running Head: METHODS OF ACQUIRING REAL ESTATE1 Methods of Acquiring Real Estate University of Phoenix FIN591 February 1, 2020 Methods of Acquiring Real Estate In the past, commercial real estate investors had limited resources and knowledge about the investment; only a few elites would have access to the resources,resulting in relatively high risk and high reward market. However, recently there are more ways to be involved in METHODS OF ACQUIRING REAL ESTATE2 commercial real estate covering more risks and rewards than before. Here are some of the ways real estate investors acquirereal estate properties today. Acquire Commercial Properties. Once a property has been established and proven to provide adequate cash flow, this investment method focuses on preserving and improving the cash flow and property valuation through leasing, managing, and financing it well. However, it has relatively high risks as the investor can make huge losses through mismanagement and make substantial profits when smartly invested. Develop Commercial Properties Real estate investors applying this method are prone to high risks andincreased rewards since developing a commercial property like an office building needsdirect experience and good knowledge of the target market. A deep understanding of financing, planning, construction, approval, and leasing can result in high investment rewards. Private Equity This investment method in commercial real estate has relatively lower risks as an expert is ...
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