FINA 210 Lecture Notes - Lecture 1: Making Money, Down Payment, Rei
Document Summary
Down payment for property, affluent area (less risk) Return is usually higher than stocks and bonds comes with lower risk. Major players: tenants, governments, banks, and you (investor) Minor players: notary/lawyer, agent/broker, contractor, home inspector. Main portion of profit is from capital gain: selling price of investment minus original cost. Longer you keep the investment the higher the capital gain. Goals, objectives, constraints have some money and borrow, restricted by wealth of down payment. Step 1: identify money you have down payment, minimum return, level of risk can handle. Step 2: know how much need to borrow, financing environment, who/how long/what, legally allowed to buy and invest in this manner visit legal environment, tax environment. Market environment location, timing, risk, supply/demand. Step 3: operating decisions making money during operating part of investment, number crunching. Step 4: how do i know i have a good project, rules of thumb approach.
