Introduction Due diligence is one of, if not the, most important periods in the real estate investment process. It is during the due diligence phase that the investor looks for any factors which can change the financial merits of the purchase. These factors may prompt the investor to either renegotiate terms with the seller or […]
Introduction to Commercial Real Estate Part 4: Due Diligence Read More »
I don’t frequently do book reviews, but occasionally a book is published that is so closely aligned with the Fundamental Investing Institute’s mission of educating and empowering entrepreneurs and individual investors that I would be remiss not to comment on it. Codie Sanchez’s book, Main Street Millionaire: How to Make Extraordinary Wealth Buying Ordinary Businesses
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Introduction What most distinguishes an investment asset from a speculative asset is the comparison of price vs. appraised value. To an investor, the comparison of price and value is the most important consideration. It is only fitting, then, that I devote a post in this series to the valuation of commercial property. Before I go
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Introduction In 2004, I accompanied a friend to a real estate networking event held at a local country club. As my friend and I made our way through the room looking for our assigned seat, we were approached by a middle-aged man. He politely introduced himself and then quickly asked if we were “accredited investors.”
Introduction to Commercial Real Estate Investing Part 2 – The JOBS Act Read More »
Introduction Unlike many other books or blogs, my intent is not to show how great commercial real estate is compared with other investment alternatives. Rather, my intent is to discuss, as objectively as possible, commercial real estate as an asset class. Specifically, I hope to reach smaller investors, who can now invest in real estate
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The modern economy is highly globalized. Goods, services, and capital can flow between countries in a highly efficient manner. The price of a country’s currency relative to other currencies greatly affects that country’s economy. The currencies of most industrial economies trade freely against one another. The foreign exchange market is the market where currencies are
Money and Banking Part 8: The Global Financial System Read More »
Money is a commodity like any other and like other commodities, money can be lent by those with a surplus to those with a deficit. The price which those with surplus funds charge for the use of funds is called the interest rate. The Loanable Funds Market The supply of loanable funds ultimately comes from
Money and Banking Part 7: Interest Rates Read More »
In a market economy, prices play a leading role in allocating scarce resources. Prices fulfill this function by conveying information to buyers and sellers about the relative scarcity or abundance of goods and services. With price information, buyers and sellers alter their behavior in ways that bring about equilibrium – the state in which a
Money and Banking Part 6: Money and Prices Read More »
In this post, we discuss monetary policy and the role that central banks play in a modern economy. Although our focus is primarily on the U.S. central bank, the Federal Reserve, the policy tools which we discuss our similar to those used by other central banks, such as the European Central Bank, the Bank of
Money and Banking Part 5: Monetary Policy Read More »
In part 1 of this blog series, I referenced the famous bank run scene in the movie It’s a Wonderful Life. In the scene, a mob of depositors gather around the Bailey Building and Loan and demand withdrawal of their deposits. George Bailey, the film’s protagonist, attempts to calm the crowd by telling them, “….
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