Question 1:
John and Judy DeRight are cousins whom share the same investment manager, Angus Cartwright, III, and are both looking to diversify their assets in future investments. Judy is the owner of her own chemical company that earns in excess of $1.6 million before taxes and $1.1 million after taxes per year. Although she has received numerous offers, Judy does not wish to be bought out by anyone and thus desires to diversify the investments she already owns. She currently has over $16 million dollars in securities, which she wants to invest in outside investments. Judy DeRight is thus a business owner with a stable income, and is fairly risk tolerant as she is closer away from retirement than her cousin.
John on the other hand is at a completely different part of his professional life than is Judy. Unlike Judy, John sold his company recently and now has $18 million in stocks from the acquiring company. After this sale, he decided to retire and live off the $500,000 dividends the stocks pay and another $500,000 from his own other income. He is willing to sell up to $9 million of his stock shares to fund any future investments. Because he is retired, John is risk averse with his desired investments.
Both Judy and John have a few goals that they share in common. They both want to invest in a property large enough that will attract property management companies to do the daily maintenance on that property. That way, they don’t have to do it themselves. They also want to have a minimum return on their investment of at least 12% after tax. Both have stated that they wish to diversify their existing assets by investing in real estate. They want a property that has maximum protection against inflation, and that carries attractive tax advantages. Each DeRight is being offered multiple interesting real estate investments in the form of Alison Green, 900 Stony Walk, Ivy