Introduction to Real Estate Investment Analysis

This article provides a concise description of the typology of real estate, real estate as an investment, the macro and micro-economics that will effect the value of the investment, and an introduction to understanding the three methods used to determine value for real estate.

Real estate is unique in that it is both a physical and financial asset.  Real estate however is rooted in its local environment (immobility) differently than other asset classes.  While buildings are local assets, the financial asset of owning an income stream or the building can be traded globally.  It is the dual nature of real estate and the multiple influences of regional and world economics that links real estate beyond the boundaries of the local environment. Further, the events in the global economies or national events can cause ripples in the industry that relies on the mining of raw materials, commodities markets, labor pool, and transportation.

Real Estate Investment & Analysis