8. Basic forms of real-estate-based investments
Invescore Property LLC, 2024
- Forms of real estate investors: Owner or Lender
By investing in a project or company, you become a “Project Owner” or “Project Lender”. To summarize the characteristics and differences between these two forms of investors:
ASSETS
OWNER’S EQUITY
LIABILITY
Total assets of the company
=
Funding provided by project owners
+
Funding from lenders
To be continued...
- Globally approved RE investment type: Public Real Estate Investment Trust
International name: REAL ESTATE INVESTMENT TRUST
This type of fund aims to earn a profit from rental income from day one. That's why they usually purchase properties that have been put into operation with the funds raised from investors buys.
By purchasing units of the fund, the investor becomes one of many owners of the fund itself. However, by extension, the fund owner is an indirect owner of the properties which the fund owns.
To be continued...
Economic State
03
04
05