Term
| Investors must consider the following when acquiring income producing proerties. |
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Definition
- market factors
- occupancy rates
- tax influences
- level of risk
- amount of debt financing
- how to measure return
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Term
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Definition
| refers to funds invested by an owner, or the person acquring the property |
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Term
| What motivates an investor to aquire real estate? |
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Definition
- anticipation that the property will produce net income after collecting rents and paying expenses
- anticipation of selling the property after some period
- Diversification
- Tax Benefits
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Term
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Definition
| the cyclical nature of the real estate industry |
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Term
| Facts of the real estate industry |
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Definition
- very large market, in terms of number of properties and square footage
- highly competitive
- highly fragmented, no monopolies
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Term
| When vacancy rates are falling and rents are rising, what is happening to leasable space? |
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Definition
| Leasable Space: Declining |
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Term
| Investing in Core Properties |
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Definition
| the goals is to acquire existing, seasoned, relatively low risk properties that are at least 80% leased to tenants with good credit.....could be a foundation for bulding a larger portfolio....the goal is stable cash flow with returns competitive with comparables |
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Term
| Investing in Core Properties with a "Value Add" strategy. |
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Definition
| Core Property investment with a change in the management of the property |
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Term
| Property Sector Investing |
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Definition
| based on the belief that one proeprty type will outperform other sectors in the long run.....similar to a mutual fund |
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Term
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Definition
| based on the belief that some event will make the investment outlook for a property type poor....and then these investors will buy when the prices are low enough...they believe negative news invokes haste and over reaction |
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Term
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Definition
| attempt to predict when to buy and sell properties based on the real esate cyle...rotation strategy is selling at peaks and buying at troughs |
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Term
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Definition
| based on discovering properties that are likely to experience significant or above average appreciation in value |
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Term
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Definition
| research directed at finding properties that have been overlooked...greater than expected income and appreciation |
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Term
| Strategy as to the Size of Property |
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Definition
| preference for a subsector because they believe they can better understand the operation of tenant-users, and the demand for the space. |
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Term
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Definition
preference to multiple or to few
multiple: high turnover...adjust rents
Single: less risky because of low turnover and credit |
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Term
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Definition
based on ability to recognize differences in prices that buyers are willing to pay for the same real estate in different market.
Private to REIT |
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Term
| Turnaround/Special Situation |
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Definition
oppurtunites from changing or modifying the use
1.Flip the house
2.acquire firm...sell property....lease to run business |
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Term
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Definition
| acquire from those in financial difficulty, or properties that need renovation |
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Term
| Investing in Trophy or Blue Chip |
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Definition
| invest in visibile, well located properties...some unique attribute |
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Term
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Definition
| acquisition of land, design of the building, and a leasing program...more risk but more return |
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