Real Estate.docx - Real Estate Real estate buying and selling tangible property More illiquid Requires hands on management \u2013 can\u2019t just hold it like

Real Estate.docx - Real Estate Real estate buying and...

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Real EstateReal estate: buying and selling tangible property-More illiquid -Requires hands on management – can’t just hold it like you can with a stock-Enormous transaction cost, compared to stock-Cash flows come from rent instead of dividends, etc.Considerations when investing in real estate:-Real Estate Class – offices, strip center, apartment buildings, etc.-2 Categories: income producing (leasing out space to someone and they pay you rent) and non-income producing (investing in a vacation home, you don’t lease it out but you hope it appreciates when you sell)Income Producing Real Estate Assets:-Office: height (low/mid/high rise) and location are the main factors; -Retail Properties: location, population density and growth, relative income levels are important factors; more stable than office properties – if one client leaves the office it’s a big hit, but not with retail-Industrial Properties: (warehouses, factories, etc.); benefit of
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  • Spring '08
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