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This assignment will be submitted to Turnitin™.Instructions
Deliverable 1 will focus on introductory concepts to real estate investment in accordance with the curriculum. This deliverable will be used for you to determine their investment strategy, introduce avenues for purchasing and financing real estate, and to evaluate the long-term impacts of purchasing plans.
Deliverable 1 will require the following:
Identify the real estate investment segment for a proposed real property purchase
Determine if the property will be commercial or residential
Identify property usage as a lease, buy and hold, flip, or development
Explain the pros and cons of your investment choice
Outline the criteria for your investment including location, price point, square footage, etc.
Assume that you will be financing this purchase. Research 3 different lenders and identify the following based on your maximum price point
Type of loan: residential or commercial; fixed, adjustable or hybrid; balloon payment, etc.
Identify interest rates, balloon payments, and requirements for cash down on the loan
Using Time Value of Money concepts, calculate the full cost of each loan under each set of conditions for that particular loan. Show all work for your calculations, either written out or with spreadsheet formulas.
Based on loan conditions and costs, choose the financer and loan product that will finance your investment. Support your decision for using this lender for your investment. Save this information, as it will be used in calculations for future weeks.
I have provided the sample for the homework in EXCEL.
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