Description
Americans have many ways and places to invest their money. They choose a product (whichever investment they desire) generally through analysis and comparison. Many times, however, the investor chooses a product because of the knowledge and sales ability of the salesperson.
Many investors are missing the opportunity to achieve optimum diversification, enabling them to potentially increase investment returns with less risk, simply because they have not taken the time to understand real estate investing. This course introduces investment real estate. Real estate investment terminology, taxation, and principles of investing in real estate will be reviewed. Students will complete and analyze cash flow and tax analysis forms, cash flows after tax, as well as net operating income. When completed, you’ll be able to compare various investment alternatives, such as stocks versus real estate, or REIT investing versus whole ownership. The goal is for you to be able to consult with a customer on a reasonable, logical, investment-goals basis.
Much of this material may be new to you and thus confusing. Relax. This is one of those subjects that becomes easier the more you do it. Don’t let the math get in the way. The math aspect is logical, and you use the same type of analysis in your everyday life. Whether it’s figuring tips at a restaurant, discounts on a clothing sale, your commission on a sale, comparing interest rate offers on a CD versus a money market account and so forth.
Objectives
At the end of this course, students will be able to:
- Understand the risks and benefits of investment real estate.
- Identify reasons why people invest in real estate.
- Identify the terminology associated with income-investment property.
- Explain Leveraged vs. Unleveraged property.
- Understand the different types of investment properties.
- Purchase profitable investment properties.
- Avoid potential pitfalls when purchasing investment properties.
- Identify income streams used to purchase investment property.
- Calculate cash-on-cash return
- Understand when a tax advisor should be consulted when making investments.
- Create reserves for replacement of mechanical items and unexpected repairs.
- Create an operating statement for investment properties.
- Apply Tax Reform Act of 1986 to losses from real estate investing.
- Calculate the sales price and tax consequences on the disposal or refinance of investment real estate.
- Calculate and explain tax related considerations for investment property such as interest deduction, passive loss, and depreciation.
- Understand the potential consequences of selling an investment property.
- Define terminology often used in real estate investing.
- Understand depreciation schedules.
- Differentiate between gross income and net spendable income.
- Use Income, Rate and Value to determine return on investment.
Shopping Cart
Your cart is empty