Real Estate Investment Trusts

There are three basic types of real estate investment trusts (REITs) 1. The equity REIT This is similar to a mutual fund except the investors own an interest in whatever real estate the organization acquires. The form of ownership is like a corporation, only the income and losses are treated, for the investor, as though this were individual ownership of that percentage of the transaction. The equity REIT is a major buyer of office buildings, shopping centers, and the like. It takes part in...

Real Estate Investors

No matter how much experience you have, this book offers you a keen insight on how to increase your productivity, reduce your risk, and maintain your edge even when you sell in a buyer's market or buy in a seller's market. Dozens of checklists help you quickly and simply calculate data that you might have been missing before, or which came in too late to be of any real use to you. This book shows you how you can anticipate which property is going to go up in value, and even better, which...

Example 1 Preferred Income Used in a Joint Venture You invite

A fellow investor to put 500,000 of his money in a project of yours. Together, you borrow, in the form of a purchase money mortgage, another 2,400,000 to acquire an apartment building you are going to manage. Assume that this 2,400,000 mortgage has an annual debt service of 220,000 per year. You and the investor are 50 50 in ownership, even though the investor has put up all the capital to get the deal started. You know that this property has a great potential, and that your management...

Constant Payment Percent

This is a percentage of the principal remaining to be repaid that when multiplied by that principal would result in a number that is equal to the combined principal and interest portions of the repayment. Turn to Table A. In the 18-year column, slide your finger down to 12 percent (note the percentages in the far left column). The constant payment percent corresponding to 18 years (remaining payout) at 12 percent is 13.583 percent. This number is pure magic because when it is multiplied by the...

Finding the Overall Effective Yield of a Wraparound Mortgage

The first step in finding the effective yield of the bonus is to fill out the wraparound analysis chart (Table 10.1). In looking at the amortization chart for the wraparound mortgage and the existing financing, you will be able to note the year in which the build-up of difference stops and amortization of that balance begins. This is significant since it establishes the year the bonus begins to benefit the mortgagee. In the Hodges Shopping Center Case Study (Table 10.1), this occurs in the...

How to Profit with Discounted Mortgages368

This chapter brings a new dimension to the structure of mortgages. Learn How to Use Discounted Definition of a Discounted Mathematical Aspects of a Discounted Finding the Yield Rate in a Discounted Mortgage 370 The Effect of an Early Pay-Off When the Bonus Is Review Mortgage Results of Different Payment All Interest and Principal Repaid in One Equal Principal Payments per Period plus No Payments until the End of the Introducing Periods of Time to the Discounting the Value of Money Paid Return...