...Case Study 1 Real Estate Finance May 2012 Given the chance to qualify up to a $10million dollar loan, these are three properties that caught my attention as possible investment opportunities. Owning apartment buildings is actually an investment goal that I hope to achieve within the next 10 years. Let’s look into these three different properties and see how they compare. Property 1 - Expected Total Cost of Purchase – $1,750,000 cost * 15 years @ 7% interest = $2,831,220 - Monthly Mortgage - $15,729 * 12 months = $188,748 yearly - Expected Annual Payments for Mortgage Interest – $72,000 - Expected Annual Payments for Property Taxes – $27,000 - Expected Annual Payments for Insurance – $14,000 - Expected Gross Rent Income – 14 units * $2,000/avg rent = $28,000/month = $336,00/year - Expected Net Operating Income – $336,000 - $229,748 = $106,252/year - Net Income vs Payments – $106,252 / $229,748 = .46 or 46% profit margin - Conclusion – This property seems like a gold mind. The location alone is great and in a prestigious city like Hollywood, California, the property value can only go up. The profit margin of 46% is huge and with gains like that, this location is a no brainer. I would definitely not let this property slip by, but instead jump on it, and begin to bring in the revenue. This 14 unit building is not too big where the expenses are out of control, but big enough for the rent revenue to offset by far the current expenses for the...
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...Questions (Please limit all answers to a 150-word maximum. Point form answers are also accepted) What has driven your desire to take part in the Queen’s Real Estate Investment Conference? As a student interested in pursuing a career in finance, I believe it is important to gain exposure to the Canadian real estate market, as it is one of the largest sectors in the Canadian economy. The Queen’s Real Estate Investment Conference provides a unique opportunity to learn from industry professionals about investing in real estate, an experience I would benefit greatly from. I am excited to learn more about the Canadian real estate market, and I believe QRIC provides the unique opportunity to learn about real estate from an investor’s perspective....
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...841: Real Estate Decision Making Fall 2011 COURSE OUTLINE Instructor: Office: E-mail: Telephone: John S. Andrew, Ph.D., M CIP, RPP Robert Sutherland Hall, Room 525 john.andrew@queensu.ca 613-533-6000 ext. 75756 Session Time: Mondays, 11:30 am - 2:20 pm Session Room: Robert Sutherland Hall, Room 554 Overview of the Course The course is an introduction to the concepts, principles and analytical methods involved in making the broad variety of key investment decisions regarding commercial real estate. It is designed to supplement, rather than replace SURP 844: Real Estate Project Planning. Therefore, the emphasis of this course is on commercial real estate investment rather than development. However, some elements of the latter will inevitably be addressed. The focus will be on fullyoperational income-generating properties, primarily large in scale. The main asset types of office, industrial, retail and multi-unit residential will be discussed (and possibly a few more specialized types). Another emphasis of the course will be on the micro level – the evaluation of the investment merits of individual properties (or at least individual transactions). Less attention will be paid to the macro level i.e. portfolio management. To the extent possible, the course content (including readings, cases and assignments) will be Canadian (although it is recognized that real estate investment is increasingly a global endeavor). This is primarily a combination seminar and case study course...
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...Recent empirical studies imply that most appraisal error is nonrandom, which suggests that strategies that advocate portfolio assembly over individual property selection may be defective. Each step of the appraisal process involves an unknown amount of estimation error. The combination of these errors is unlikely to produce a perfect, error-free estimate of value. Thus, appraisal error is virtually unavoidable. Investors need reasonable estimates of value when buying, selling, or retaining commercial property, so an unknown amount of appraisal error adds uncertainty to the decision-making process. Despite the uncertainty, investors have learned to make allowances for appraisal error in their decision-making processes. The way in which real estate investors interpret appraisal errors has a material effect upon the decisions that they make. In particular, the predominant belief among real estate professionals is that appraisal error is random. This belief materially influences investor attitudes toward portfolio management and the valuation process itself. Lack of understanding of the relative magnitudes of random and nonrandom components of total appraisal error has consequences for optimal portfolio strategies. For example, investors who deem the bulk of total appraisal error to be random may reasonably conclude that error in estimates is beyond their control or influence. To minimize total portfolio valuation error, such investors may assemble large, diverse portfolios even...
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...Case Study: Tapping the Ethnic Housing Market MKT 87505 – Consumer Behavior Theory & Analysis California Southern University Case Study: Tapping the Ethnic Housing Market “A subculture is a segment of a larger culture whose members share distinguishing values and patterns of behavior,” (Hawkins & Mothersbaugh, 2010, page 156). Subcultures are frequently encountered in America due to the ‘melting pot’ nature, continual immigration into the United States, and various religious and ethnic viewpoints experienced in modern day society. A collision of all these subcultures in America has led to difficult marketing approaches to address both the core values and norms of the American culture and unique market behaviors, values, and norms that may be specific to other subcultures. In the case study, “Tapping the Ethnic Housing Market,” Fannie Mae evaluated ethnic groups to determine the different perceptions associated with the home-buying process (e.g. reason to purchase a home, knowledge about the overall purchasing process, and confidence in the process). The case study will discuss the opportunities and challenges facing housing lenders and real estate agents today based in the perceptions of each ethnic group. Analysis “Ethnic subcultures are those whose members’ unique shared behaviors are based on a common racial, language, or national background,” (Hawkins & Mothersbaugh, 2010, page 158). The Fannie Mae case study analyzes the different perceptions of the home-buying...
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...economy on Real Estate sector Nilisha Parikh Proposed guide(s): To be identified 31 December 2012 Background and need for the study "India is projected to grow at 5.9 per cent in 2012-13 compared with 6.5 per cent in 2011-12," The UN Economic and Social Commission for Asia and the Pacific (ESCAP) said in the report titled 'South and South-West Asia Development Report 2012-13. Recession is often accompanied by inflation and unemployment. The existence of these two things has a major effect on the real estate market. Since people have no jobs, they have problems paying the mortgage and also the interest rates increases because of inflation. Inflation also causes people to reduce spending, which lead to low sales. So, the real estate investments will be affected heavily. Hence this study will be carried out to find out the effect on the demand and supply, developer’s strategy to sell the accumulated inventory, etc. Aims (OR research questions) and objectives To study the effect of slowing economy on the Real Estate sector. Methodology • • • • • • • Finding paramaters, which affect real estate sector. Taking case studies of other slowing economies due to the global crisis. Studying the past trends. Studying the present scenario by preparing a questionnaire and survey the people wanting to invest in the real estate. Studying the market and developer’s strategy, their target customers. Finding the demand and supply Forecast the future trends Expected outcomes The study shall conclude...
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...WHY I’M PASSIONATE ABOUT REAL ESTATE? Return: In most of the markets real estate investments perform better than equities and other asset classes. In emerging markets probably you have to go for development projects, as rental yield is not very attractive. In most of the developed markets real estate has performed better than stock market over time. And by leveraging your investment you can increase your return on equity many folds. Cash flow component in return: This one of the best thing about real estate investments – it behaves like a fixed income security, and with better yield. Rental income makes real estate more attractive even during tough time and many investors love to focus on the cash flow. Depreciation: You can’t depreciate your stocks, bonds and mutual funds. Depreciation is a gift from the government for real estate investors. Dampening of volatility in the portfolio: Real estate prices don’t fluctuate on daily basis. Fully optimized portfolios with real estate component in it have much lower volatility. Inflation hedge: real estate investments provide a good hedge against inflation. Rents usually increase with inflation, while mortgage payments on the property remain stable. This increases cash flow component. WHY SHOULD YOU NOT INVEST IN REAL ESTATE? Illiquid: Many a times real estate investments behave like illiquid assets. Generally it takes time to execute an actual exit, and liquidity can completely disappear from the market in tough times. Management...
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...Housing Real Estate Sector in Bangladesh Present Status and Policies Implications Suborna Barua* Ali Haider Al Mamun Mridha** Rezwanul Huque Khan** Abstract The real estate sector is the growth centre for the development of an economy. Bangladesh, being one of the densely populated nations in the world, has been experiencing severe of houses shortage for its citizens. Although majority of the population is segmented into the middle and the low income groups, still housing for all 1has been a fallacy in Bangladesh. The private sector housing real estate developers have met a small proportion of the national housing demand in the last more than twenty years. The gap between demand and supply is still joy wide. Despite inadequate policy preparations, these real estate developers have been successfully making business although the middle and the low income households are still untapped. With the larger proportion of people living in this income group, the private housing real estate sector has a huge scope to grow in this country. The positive notion is supported by many key indicators such as increasing house rent, inadequate and costly land, easier financing availability and more. To pave the way for the organic development of the industry, the problem of long existent inadequate financing availability at lower burden of terms and costs must have to be removed immediately, and wider scope has to be created for Non-Resident Bangladeshis. With many other issues, this study attempts...
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...III: Derivatives and Financial Risk Management | (2) | | IMB 536 Global Macroeconomic Trends and Financial Institutions or CSB Elective | (1) | | IMB 534 International Real Estate Investment | (1) | | IMB 539 Financial Management | (2) | | IMB --- CSB Elective | (2) | | Or | | | | | | IMB 595 Special Topics in International Business (to be completed at an IBSA partner school) | | C. Thesis or Extensive Written Case Analysis (12 semester hours): Term 3 (summer) | | | IMB 599 Thesis | (6) | | IMB 594 Capstone Project / Practicum | (6) | IMBA Course Descriptions (UNCW) The course descriptions shown below are only for courses offered by UNCW and the Cameron School of Business. See each alliance school for their course offerings. IMB 531. Cases in International Finance (1-2) This course will focus on international financial management cases. Cases will build on topics of international monetary systems, international investment decisions, portfolio diversifications, multinational capital structure, and foreign exchange risk and management. IMB 532. Portfolio Analysis and Management I (2) This course is designed to focus on tool and techniques of modern portfolio theory in a global context. Students will convert theory to practice through active management of a real dollar portfolio. IMB 533. Portfolio analysis and Management II (2) This course is designed to focus on the fixed income asset class as a component of an actively managed portfolio...
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...CHAPTER ONE 1.0 INTRODUCTION 1.1 BACKGROUND TO THE STUDY In a published report on Business Day by Chuka Uroko (2015), he explained that, Lagos, Abuja and Port Harcourt, Nigeria’ commercial, administrative and petroleum industry capitals respectively, are the top real estate investment destinations, and account for as high as 65 percent of all activities in this asset class, a report by the National Bureau of Statistics has revealed. The report indicated that Lagos has the greatest amount of real estate activities at 37 percent, followed by Abuja with 22 percent and Port Harcourt (Rivers State) with 6 percent, all covering 65 percent of real estate activities in the country. The trio, often regarded as Nigeria’s traditional cities, have seen increased tempo of activity in real estate development and much of the investments that have gone into real estate in the country in the last decade were concentrated in these cities. Nigeria’s has a burgeoning real estate sector, which by the GDP rebasing exercise in the country in April 2014, was discovered to be the fastest growing and sixth largest sector in the Nigerian economy, explaining the rising level of investment in the sector by both local and foreign investors. Foreign direct investment (FDI) is defined as “an investment in which a firm acquires a substantial controlling interest in a foreign firm (above 10 percent share) or sets up a subsidiary in a foreign country” (Chen, 2000). The International Monetary Fund adds...
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...| | | | | | | | | |The cultural and social influences on the buying behaviour process: the Pirelli RE case study | | | | | |IM44 | |Marketing Research Project, Fall semester of 2009...
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...Relationship between Real Estate and Financial Sectors in Dubai Economy Dr. Eisa Abdelgalil Data Management and Research Department Table of Contents Table of Contents............................................................................................................i ......................................................................................................................ﻣﻠﺨﺺ ﺗﻨﻔﻴﺬيii Executive Summary ..................................................................................................... iii 1. Introduction................................................................................................................1 1.1 Background ..........................................................................................................1 1.2 Objective ..............................................................................................................1 1.3 Research questions...............................................................................................1 1.4 Methodology and data..........................................................................................2 1.5 Outline of the study..............................................................................................2 2. Dynamic of Real Estate Market.................................................................................3 3. Impact of Real Estate on Financial Institutions ........................................................
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...from Lincoln Savings and Loan This study done by Merle Erickson, Brian Mayhew, and William Felix describes and examines the audit procedures applied to a set of material transactions from the Lincoln Savings and Loan audit failure. They suggest alternative procedures, based on information available to the auditors at the time of the LSL audit. The study also provides a starting point for future research to evaluate the conclusions reached using more controlled settings or larger data sets. The five main points given in this research study are: 1. The authors noted that the LSL auditors had apparently followed standard audit procedures yet they still failed to discover major misstatements in the financial statements. They concluded that the auditors would have done a better job if they had more of an understanding of the business, the economic trends affecting the client, and the risks inherent in the client’s transactions. 2. The study shows to major reasons that led to their conclusion. First, auditors are unlikely to receive reliable evidence from a client, especially in cases of management fraud. Second, if the auditors understand the business they can provide reliable audit evidence even in the presence of management fraud. They believe that economic data and information in the financial press provided reliable evidence that the LSL auditors could have used to develop expectations about LSL’s operations. 3. The study suggests that if the auditors had followed...
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...CASE STUDY III FAIRHOLME Ignore the crowd. Fairholme Ignore the crowd. This presentation uses Sears Holdings Corporation (“Sears” or the “Company”) as a case study to illustrate Fairholme Capital Management’s investment strategy for the Fairholme Fund. In the pages that follow, we show Fairholme Fund shareholders why we “Ignore the crowd” with regard to our portfolio positions that are currently out of favor in the market. However, nothing in this presentation should be taken as a recommendation to anyone to buy, hold, or sell certain securities or any other investment mentioned herein. Our opinion of a company’s prospects should not be considered a guarantee of future events. Investors are reminded that there can be no assurance that past performance will continue, and that a mutual fund’s current and future portfolio holdings always are subject to risk. As with all mutual funds, investing in the Fairholme Fund involves risk including potential loss of principal. Opinions expressed are those of the author and/or Fairholme Capital Management, L.L.C. and should not be considered a forecast of future events, a guarantee of future results, nor investment advice. The Fairholme Fund’s holdings and sector weightings are subject to change. As of May 31, 2012, Sears securities comprised 10% of the Fairholme Fund’s total net assets. The Fairholme Fund’s portfolio holdings are generally disclosed as required by law or regulation on a quarterly basis through reports to shareholders...
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...Organizational Structure and Roles | “All the world's a stage And all the men and women are merely players They have their exits and their entrances And one man in his time plays many parts” – by William Shakespeare | | | | | 06-May-12 | Contents Title 3 Executive Summary 3 Introduction 3 Roles 3 Attitudes and relationship of Attitudes with Roles 3 Organizational Structures 3 Organizational Structures Effect on Roles and Attitudes 3 Mechanistic Structure 3 Organic Structure 3 Moderate Mechanistic and Organic Structure 3 Phases of innovation, Mechanic versus Organics 3 Case study, Sunshine Real Estate 3 Sunshine Real Estate organizational design 3 Sunshine Real Estate organizational culture 3 Implications of Sunshine Real Estate’s three structural properties on employee role perception and attitudes 3 Work Specialization 3 Centralization 3 Formalization 3 Conclusion 3 References 3 APPENDIX 3 A: Organizational Structure Elements and Types of Structures 3 B:Elements Associated with Roles and Attitudes 3 C: Survey Analysis 3 Title The project attempts to explore the relationship between organizational structure, roles and attitudes under distinct corporate structural conditions. Executive Summary Organizational design in a sense is similar to the structure of bones in human body. It is a skeleton or framework upon which organizations are built and maintained. Organizations in creating organizational designs...
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