Angus Cartwright IV – Case Study in Investments – FI 535 – Spring 2015

I. Paper:
Short 3-5 page paper explaining the following. It should be double spaced, Times New Roman, Justfied alignment.
1. Tell me about the properties, people and any information on each you feel is relevant.

Angus Cartwright IV is an investment advisors that is hired to work for two of his cousins John and Judy DeRight, two long-time family clients. John and Judy are at a stage in their life where they are interested in diversifying each of their portfolios to include investments in real estate assets. Both John and Judy want to purchase a property that is large enough to attract a professional real estate management company, and attain a minimum leveraged return of 10% after tax. In addition, both parties feel that real estate will give them the benefits of diversification, protection from inflation, and some tax advantages. Cartwright has four properties he believes to be perfect for his client, however, he needs to narrow them down to just one property to each client.
John DeRight is currently in retirement and he has all of this wealth in securities; primarily in common stock of a company that bought his start up company and has $750,000 in dividends paid on the stock as well as another $250,000 to invest in a property. Judy is a much younger investor and she is the sole stockholder of a small-sized chemical company. Judy has accumulated over $45 million to invest in and being at the peak of her career, she would like to invest in long-term possibilities. 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. John and Just both felt that real estate would give them the benefits of diversification, protection from inflation, and some tax advantages.
One of the four properties