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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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Anonymous
Very useful material for studying!

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