Principles of Real Estate Investment

Real estate investment is the area licensees are asked about most and prepared for least. An agent who can speak accurately about a capitalization rate, a loan constant, and an internal rate of return is useful to a class of client that ordinary residential practice never reaches.Performance Programs Company’s Principles of Real Estate Investment covers real estate held to earn a return rather than to be occupied: why investors buy it, what the tax law does to it, how the segments differ, how the return is measured, and how the transactions get done. The text is streamlined, direct, and practical, with worked examples that show every calculation step by step. Figures carry forward from one chapter to the next, so a single property can be followed through an entire analysis rather than restarted on each page.CONTENTSSection I: Fundamentals of Traditional Real Estate InvestmentCharacteristics of Real Estate InvestmentInvesting as a Tax StrategyUnderstanding Real Estate Investment Market SegmentsInvesting in Office and Industrial PropertiesInvesting in Retail PropertiesInvesting in Residential Income PropertiesSection II: Investment AnalysisPerformance Analysis: Investment ReturnTime Value of Money and Discounted Cash Flow AnalysisInvestment Analysis of a Residential Income PropertySection III: Real Estate Investment as a Brokerage SpecializationReview of the Investment Brokerage MarketAn Introduction to Investor and User Needs by SegmentManaging the Investment PropertyBenchmarks in the Investment TransactionWHAT’S INSIDEOperating statements, capitalization rates, cash-on-cash return, leverage, and debt coverageTime value of money, discounted cash flow, net present value, and internal rate of returnA complete property analysis worked two ways: all cash for one year, then financed across a five-year holdOffice, industrial, retail, residential income, and land segments covered separatelyBrokerage practice, property management, and the benchmarks of the transaction from request for proposal through closingA Snapshot Review closing every chapter, plus 185 quiz questions with an answer key that explains why each answer is correctA 269-term glossary and a full indexSuitable for licensees pursuing investment brokerage, for schools teaching a real estate investment course, and for investors who want the analysis explained rather than assumed.