Similar to an accomplished land specialist, Boris Gantsevich goes about as a middle person amongst dealers and purchasers of a land exchange whether its buy of a home, business, venture property or perhaps even a summer home. He is dependable, reliable and customer arranged.

1. Real Estate InvestmentReal Estate Investment
Chapter 1Chapter 1
Boris Gantsevich Real Estate asBoris Gantsevich Real Estate as
an Investmentan Investment

2. © 2011 Cengage Learning
Key TermsKey Terms
Appreciation
Carrying
Charges
Collateral
Commercial
Land
Default Risk
Feasibility Report
Great Recession
Inflation Risk
Interest Rate
Boris Gantsevich Real Estate Agent

3. © 2011 Cengage Learning
Key Terms
Liquid
Liquidity
Living Patterns
Option
Purchase Money
Mortgage
Raw Land
Tangible
Value Gain
Boris Gantsevich Real Estate Agent

4. © 2011 Cengage Learning
Opportunities in Real EstateOpportunities in Real Estate
Real Estate Compared to
Other Investments
Investments and
Investment Values
IncomeIncome
AppreciationAppreciation
Value GainValue Gain
Boris Gantsevich Real Estate Agent

5. © 2011 Cengage Learning
Investment OpportunitiesInvestment Opportunities
For income only—mortgage loans
For appreciation only—holding
undeveloped land
For value gain only—development of
building lots
For all three—income properties-
apartments, offices, retail
Boris Gantsevich Real Estate Agent

6. © 2011 Cengage Learning
The Great RecessionThe Great Recession
Bubble in residential real estate
Congressional mandates to assist
the least creditworthy
Rapid fall in home values
Recovery could present great
opportunities
Boris Gantsevich Real Estate Agent

7. © 2011 Cengage Learning
Advantages of Real Estate asAdvantages of Real Estate as
an Investmentan Investment
Returns ON Investment
Income
Appreciation and capital gains
Other advantages
Tax shelters
Use as collateral
Land is tangible
Pride of ownership
Boris Gantsevich Real Estate Agent

8. © 2011 Cengage Learning
Disadvantages of Real Estate
as an Investment
Overall Inefficiency of the R. E. Market
Transaction Costs
Lack of liquidity
Restricted Information Flows
Limited Numbers of Buyers and Sellers
Boris Gantsevich Real Estate Agent

9. © 2011 Cengage Learning
More Disadvantages
Heterogeneity of the Product
Long-Term Investment
Management Requirements
Government Restrictions and Legislation
Changing Efficiency of the Real Estate
Market
Boris Gantsevich Real Estate Agent

10. © 2011 Cengage Learning
Comparison of Real Estate
to Other Investment Opportunities
Precious metals
Investment in self
Bonds
Mortgages
Stocks
Commodities
CDs
Collectibles
Boris Gantsevich Real Estate Agent

11. © 2011 Cengage Learning
Value of Land
Mining
Cultivation
Drilling
Development
Boris Gantsevich Real Estate Agent

12. © 2011 Cengage Learning
Raw Land
Working Patterns
Traffic Patterns
Living Patterns
Land Development
Boris Gantsevich Real Estate Agent

13. © 2011 Cengage Learning
Categories of Land Use
Single Family Residential
Multi-Family Residential
(Apartments)
Commercial Land
Industrial Land
Boris Gantsevich Real Estate Agent

14. © 2011 Cengage Learning
Acquiring Real Property
The purchase price
Cost of search
Cash Price
Extended payment terms
Carrying charges
Taxes
Interest
Maintenance, Utility stand-by charges
Insurance
Boris Gantsevich Real Estate Agent

15. © 2011 Cengage Learning
Preliminary Evaluation Cost
Option costs
Feasibility report
Planning fees
Environmental study
Appraisal costs
Boris Gantsevich Real Estate Agent

16. © 2011 Cengage Learning
Organization Costs
Legal costs
Accounting fees
Architectural and engineering costs
Financing charges
Closing costs
Disposition costs
Boris Gantsevich Real Estate Agent