Question

Distinguish between direct and indirect investments in real estate.


Distinguish between direct and indirect investments in real estate.

Homework Answers

Answer #1

Direct real estate investing involves buying a stake in a specific property. For equity investments, this means acquiring an ownership interest in an entity that directly owns an asset such as an apartment community, shopping center or office building. Indirect real estate investing typically involves buying shares in a fund or a publicly or privately held company. One of the common first steps for investors is to buy shares of non-traded or publicly-traded real estate investment trust (REIT) stocks. REITs are in the business of owning and managing portfolios of real estate properties.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Distinguish between direct and indirect costs in a corporate bankruptcy. Describe agency costs and the impact...
Distinguish between direct and indirect costs in a corporate bankruptcy. Describe agency costs and the impact on bondholders.
Distinguish between a virtual image and a real image.
Distinguish between a virtual image and a real image.
Distinguish between Genetic covariance and Indirect selection and indicate their significance in animal breeding
Distinguish between Genetic covariance and Indirect selection and indicate their significance in animal breeding
9) Real Estate Investment Trust (REIT) are a relatively new way of investing in real estate...
9) Real Estate Investment Trust (REIT) are a relatively new way of investing in real estate and A) are limited by statute to just retail strip center investments B) are now so established that they are well represented in the S&P 500 C) are a form of an LLC, and a way for everyday investors to invest in a diversified pool of large real estate investments D) limited to high net worth investors
Briefly distinguish between Nominal GDP and Real GDP.
Briefly distinguish between Nominal GDP and Real GDP.
What are the two sources of capital for real estate investments? Equity, debt Entrepreneurial effort, equity...
What are the two sources of capital for real estate investments? Equity, debt Entrepreneurial effort, equity Mortgages, second mortgages Debt, hard costs
Which of the following potential investments has the least risk? Real estate Commercial paper Treasury bills...
Which of the following potential investments has the least risk? Real estate Commercial paper Treasury bills Common stock
Draw a distinction between direct and indirect cost?
Draw a distinction between direct and indirect cost?
Explain the difference between direct and indirect channels.
Explain the difference between direct and indirect channels.
Mr. and Mrs. Overtaxed have the following incomes and losses from their various real estate investments...
Mr. and Mrs. Overtaxed have the following incomes and losses from their various real estate investments for 20XX. •           20% ownership in five-unit apartment complex.                         Overtaxeds’ share of 20XX loss:                                      (15,000) •           20% interest in strip shopping center that is fully rented. Overtaxeds’ share of 20XX loss:                                        (5,000) •           5% ownership of a commercial property. Overtaxeds’ share of 20XX loss:                                      (16,000) •           10% limited partnership's interest in a real estate limited partnership. Overtaxeds’ share of 20XX loss:                                     ...