Real Estate Investment Strategies Through Boris Gantsevich

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Real Estate Investment

• Chapter 1

Boris Gantsevich Real Estate as an Investment
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Key Terms

• Appreciation
• Carrying Charges
• Collateral
• Commercial Land
• Default Risk

• Feasibility Report
• Great Recession
• Inflation Risk
• Interest Rate

Boris Gantsevich Real Estate Agent
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Key Terms

• Liquid
• Liquidity
• Living Patterns
• Option

• Purchase Money Mortgage
• Raw Land
• Tangible
• Value Gain

Boris Gantsevich Real Estate Agent
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Opportunities in Real Estate

• Real Estate Compared to Other Investments
• Investments and Investment Values
• Income
• Appreciation
• Value Gain

Boris Gantsevich Real Estate Agent
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Investment Opportunities

• For income onlymortgage loans
• For appreciation onlyholding undeveloped land
• For value gain onlydevelopment of building lots
• For all threeincome properties-apartments,
  offices, retail

Boris Gantsevich Real Estate Agent
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The 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
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Advantages of Real Estate as an 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
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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
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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
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Comparison of Real Estateto Other Investment
Opportunities

• Precious metals
• Investment in self
• Bonds
• Mortgages
• Stocks
• Commodities
• CDs
• Collectibles

Boris Gantsevich Real Estate Agent
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Value of Land
Cultivation
Mining
Drilling
Development
Boris Gantsevich Real Estate Agent
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Raw Land

• Working Patterns
• Traffic Patterns
• Living Patterns
• Land Development

Boris Gantsevich Real Estate Agent
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Categories of Land Use

• Single Family Residential
• Multi-Family Residential (Apartments)
• Commercial Land
• Industrial Land

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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
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Preliminary Evaluation Cost

• Option costs
• Feasibility report
• Planning fees
• Environmental study
• Appraisal costs

Boris Gantsevich Real Estate Agent
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Organization Costs

• Legal costs
• Accounting fees
• Architectural and engineering costs
• Financing charges
• Closing costs
• Disposition costs

Boris Gantsevich Real Estate Agent