Real Estate Opportunities for Teamsters Local 731 Jim Mackey 847-724-9200

Slides:



Advertisements
Similar presentations
Chapter 1 - An Introduction to Financial Management Chapter 1 - An Introduction to Financial Management  2005, Pearson Prentice Hall.
Advertisements

Ch. 1 - An Introduction to Financial Management  2002, Prentice Hall, Inc.
Risk and Return, Business Structures By R. S. Miolla.
Intro to Financial Management Dividend Policy. Review Homework Income stream risks Business risks Operating risk –Break-even analysis –Operating leverage.
CHAPTER TWELVE FINANCIAL LEVERAGE AND FINANCING ALTERNATIVES.
BALANCE SHEET STATEMENT OF FINANCIAL POSITION KEY CONCEPTS ASSETS = LIABILITIES + OWNER EQUITY ASSETS AND LIABILITIES ARE CLASSIFIED AS EITHER CURRENT.
McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved CHAPTER15CHAPTER15 CHAPTER15CHAPTER15 Financing Corporate Real Estate.
13/06/20151 Financial Statements for the year ended 31 July 2005.
MODULE 14. REAL ESTATE SYNDICATION What is a Syndication? w Organizational Form of Ownership w Types of Syndicate Offerings w Reasons for Syndication.
Finance and the Financial Manager Chapter 1. Topics Covered  What Is A Corporation?  The Role of The Financial Manager  Who Is The Financial Manager?
Long-Term Liabilities - Chapter 10 Financial & Managerial Accounting, 8th Edition by Needles, Powers, Crosson.
Introduction Organizing a Business The Role of The Financial Manager Financial Markets Corporate Goals & Incentives.
Chapter 3. SALES SALES - Cost of Goods Sold GROSS PROFIT GROSS PROFIT - Operating Expenses OPERATING INCOME (EBIT) OPERATING INCOME (EBIT) - Interest.
Chapter 1. Goal of the Firm 1) Profit Maximization? this goal ignores: a) TIMING of Returns (Time Value of Money - Ch.5) b) UNCERTAINTY of Returns (Risk.
 Finance and the Financial Manager Principles of Corporate Finance Brealey and Myers Sixth Edition Slides by Matthew Will Chapter 1 © The McGraw-Hill.
MODULE 10 Basic Premises w Risk/Return analysis is critical to establish project feasibility w Financial and ownership structures affect participants’
Chapter 20 Ownership Structures for Financing and Holding Real Estate © OnCourse Learning.
Finance Structures and Issues in the UAE Financial structure is a mixture of long–term debt and equity that a company uses to finance its operations, it’s.
REOLP Inc. Real Estate Owned Limited Partnerships
© OnCourse Learning Chapter 27 : Investing in Real Estate.
Unit 9 - Finance Spending, Saving and Investing. Three things you can do with money: 1) Spend 2) Save 3) Invest.
The Opportunity. Enjoy return on Australian property investment for a fraction of total investment  Invest only 15% (or under) of the property value and.
Doctorate of Business Administration
MidTerm #1 Review Questions. 1.What is the primary goal of the financial manager? Why is it important that we have a clear & unambiguous goal? 2.What.
Overview of Finance. Financial Management n The maintenance and creation of economic value or wealth.
 Company Name : Nature Outdoor Recreation and Resort (NATOUR)  Company Address : Hutan Simpan Ayer Hitam, Puchong, Selangor  Type of Company.
© 2009 Cengage Learning/South-Western Financial Statement and Cash Flow Analysis Chapter 2.
Financial Statements By John C. Kelly. Discussion Question How do you measure your personal financial condition?
$$ Entrepreneurial Finance, 5th Edition Adelman and Marks Pearson Higher Education ©2010 by Pearson Education, Inc. Upper Saddle River, NJ Chapter.
Real Estate Investment Chapter 11 Tools of Analysis © 2011 Cengage Learning.
Why Invest in Real Estate Presented by: Tony A Drost, MPM®, RMP®
©2014 OnCourse Learning. All Rights Reserved. CHAPTER 13 Chapter 13 Use of Debt in Real Estate Investment: The Effect of Leverage SLIDE 1.
VANDERBILT INVESTMENT BANKING VANDERBILT INVESTMENT BANKING Meeting 6: Financial Accounting.
Exam 1 Review 09/23/2008. Goal of the Firm Shareholder Wealth Maximization? this is the same as: a) Maximizing Firm Value b) Maximizing Stock Price.
BALANCE SHEET STATEMENT OF FINANCIAL POSITION KEY CONCEPTS ASSETS = LIABILITIES + OWNER EQUITY ASSETS AND LIABILITIES ARE CLASSIFIED AS EITHER CURRENT.
Real Estate Principles and Practices Chapter 16 Investment and Tax Aspects of Ownership © 2014 OnCourse Learning.
Chapter 3 Accounting and Finance Learning Objectives  Interpret information contained in the balance sheet, income statement, and statement of cash.
Real Estate and High-Risk Investments Chapter 16.
Chapter 14 Integrating Accounting, Finance, Marketing and Economics Accounting and Finance for Entrepreneurs EBD-301 Dr. David P. Echevarria Slide 1 All.
Analysis of Financial Statements. Learning Objectives  Understand the purpose of financial statement analysis.  Perform a vertical analysis of a company’s.
Chapter 20 Ownership Structures for Financing and Holding Real Estate.
McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 18: Structuring Real Estate Investments: Organizational.
Chapter 2 Risk, Return, and Decision Making 4 Characteristics of RE Investments Speculation vs. Investment No Clear Distinction Uniqueness of Real Estate.
Goals and Governance of the Firm
Making an investment decision. Value  Investment value: The value determined in view of investment objectives, goals and constraints.  Market value:
Real Estate Principles and Practices Chapter 16 Investment and Tax Aspects of Ownership © 2010 by South-Western, Cengage Learning.
© OnCourse Learning. All Rights Reserved. Basic Real Estate Investment Learning Objectives  Define and be able to calculate equity, leverage, cash flow,
Chapter 1 Principles PrinciplesofCorporateFinance Ninth Edition Finance and The Financial Manager Slides by Matthew Will Copyright © 2008 by The McGraw-Hill.
1- 1 CURRICULUM  Introduction: goal of the firm  Financial markets and institutions, accounting and finance  Measuring corporate performance  Long-term.
Real Estate Finance Residential decision making: Buy or lease?
Non-Bank Financial Institutions Finance Companies, Insurance Companies, Pension Funds, Mutual Funds, and Real Estate Investment Trusts Chapter 5 Dr. BALAMURUGAN.
Financing. Equity financing Debt financing Equity financing: owned Stocks: Claims on assets Part ownership Common stock Preferred stock.
1 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin CHAPTER 5 PRIMARY FORMS OF REAL ESTATE OWNERSHIP Sole Proprietorships.
McGraw-Hill Education Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of.
Chapter 7 Investments.
BALANCE SHEET STATEMENT OF FINANCIAL POSITION KEY CONCEPTS
Understanding a Firm’s Financial Statements
Fundamentals of Corporate Finance
FARM BALANCE SHEET Page B-6 Market Value Cost Value As of ,
Introduction Chapter 1.
Chapter 1 - An Introduction to Financial Management
Chapter 7 Investments.
Commercial Real Estate Why the is in More Demand?.
Real Estate Investment Trusts – By Prof. Simply Simple
Personal Finance Final Exam Review Game
BRICA Update Lou Herman President.
Chapter 7 Investments.
FIN 360: Corporate Finance
Chapter 1 - An Introduction to Financial Management
Introduction & Terminology
Presentation transcript:

Real Estate Opportunities for Teamsters Local 731 Jim Mackey

Why Real Estate? Secure Investment –Doesn’t carry the risk of the securities market Long Term Growth Steady income/ cash flow Appreciation Accrual Asset you can Leverage Ability to defer Capital Gains Taxes

Types of Investment 1.Interest Investor 1.Cash investment earns set interest rate 2.Accrued interest over investment term 2.Sole Ownership 3.LLC Partnership

Interest Investment Investment Earns –Fixed APR (5-6%) –Accrual Balance accrues 5- 6% over investment term Term is 5-10 years depending upon type of financing Total Earnings –Approximately % Return

Interest Investment Example

Pros and Cons Pros –Similar to bank –Return fixed –Risk protected by shares in LLC –No Mgmt Responsibility –No Mortgage Liability Cons –No appreciation –No tax protection –Unable to defer tax –No Asset

Sole Ownership 100% Ownership –Responsible for: Management Leasing Maintenance Marketing Tennant Issues Financing

Cash Flow Example

Pros vs. Cons Pros –100% Appreciation –100% Cash Flow –Total Control of … Negotiations Tenant Selection Financing Cons –Total Management Responsibility –All Maintenance –Marketing –Tenant issues –Mortgage Liability –You’re in the Real Estate business!

LLC Partnership Fractional Ownership –Share in portion of appreciation –Share in portion of cash flow –No management responsibility –No maintenance issues –Investment protected by Limited Liability Corporation Shares

LLC Cash Flow Example

LLC Cash Flow Example 2