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CHAPTER I: Introduction and overview

bulletThe real estate decision-making cycle
bulletAcquisition phase
bulletAdministrative phase
bulletAlienation phase

Acquisition phase

bulletInvestor goals and constraints
bulletAscertain ownership rights
bulletAnalyze market and investment climate
bulletAnalysis of financing alternatives
bulletFeasibility analysis
bulletAcquisition

Investor goals and constraints

bulletAvailable assets
bulletType experience
bulletRisk Exposure
bulletReturn requirements
bulletAmount
bulletPattern

Ascertain ownership rights

bulletWhat rights are needed for the investment?
bulletWhat leasehold restrictions are needed to maximize the investment opportunity?

Analyze market and investment climate

bulletMarket studies
bulletInterest rate trends
bulletAlternative investment performance

Analysis of financing alternatives

bulletDown payment requirements
bulletRepayment patterns
bulletParticipation requirements
bulletLiability considerations

Feasibility analysis

bulletLegality
bulletFinancially
bulletPortfolio impact

Acquisition

bulletContract
bulletClosing
bulletManagement transfer

Administrative phase

bulletProperty management
bulletMarketing
bulletLeasing

Alienation phase

bulletAlienation form
bulletMarketing interest
bulletContracting
bulletClosing
bulletManagement transfer

Decision-making environment

Investor motivations

Investor advantages

bulletPride of ownership
bulletPersonal control
bulletSelf-use
bulletEstate building
bulletSecurity of capital
bulletHigh operating yield
bulletLeverage
bulletTax shelter factors
bulletCapital appreciation

Investor disadvantages

bulletIlliquidity
bulletManagement burden
bulletActual depreciation
bulletPhysical
bulletFunction
bulletEconomic
bulletGovernment control
bulletEconomic cycles
bulletLegal complexity
bulletIgnorance

Entrepeneurship enhances advantages and midigates disadvantages.