1. Aim: How do we invest in real estate? Do Now: List the places that come to mind when you hear the phrase “real estate”

2. Quick Continuation from Friday! The Value of the Bond  When you redeem your bond you receive “face value”…  Face Value: amount printed on the bond  Bond Cost: a percent of the value of the bond Ex: “Bond price of 90 on a $1,000 bond” This means: 90% of 1,000 which equals $900

3. Bond Cost = Face Value X Percent Ex: Find the bond cost if the face value is $1,000 and the percent is 89.5%. Ex: Find the bond cost if the face value is $1,000 and the percent is 6%.

4. Investing in Real Estate Buying land and any buildings on it Considered a good way to fight inflation because it usually increases in value over the years Commercial Property- Land and buildings that produce lease or rental income Ex. Office buildings, stores, hotels, duplexes and multi-unit apartments

5. Buying Real Estate Direct Investments- the investor holds legal title to the property Types: Vacant Land: investors hold the property expecting it to go up substantially in value over time. Or they hope to build on it later. Considered a speculative investment, harder to get a bank loan Single-Family Houses Rental Properties: Duplex, Condominium, Apartment buildings Recreation and Retirement Property: Beach and mountain cabins. Owner can enjoy on weekends or long vacations

6. Textbook Pages 317 Complete Questions 1-8 & 11 Will be handed in