Lesson 15: Term Real Estate Investment Project

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October 24, 2016 at 1:00 pm  •  Posted in f16-econ491 by  •  1 Comment

Mon, Oct 24

Review:

  • Project Lonestar
  • Accidental Liquor Store

Presentation:

  • Shark Tank: Real Estate Edition
    • Term Project (in lieu of final paper)
    • You’ve been invited to “pitch” a Real Estate Investment plan
    • Investors are offering up to $150,000 in real estate investment capital
    • You may also use mortgage financing to increase your purchase power
    • Select one or more target properties
      • Pueblo County market only (or request permission for different market)
      • Property must be an “Active” listing on the MLS
    • Use comparable sales analysis to generate valuation estimates
    • Develop an ROI worksheet to analyze potential returns
    • Provide a target purchase price range including “offer”, “accept” and “highest” amounts
    • Decide on an “exit strategy”
      • Examples: buy and hold rental, fix and flip, pay cash + sell w/ owner financing, etc.
      • Investors want to know how/when they’ll get their money back
    • Present investment plan during class
      • Use PowerPoint or other presentation software
      • Presentation should be between 5 and 10 minutes (I will cut you off at 10 min)
    • Presentation Dates: Nov 7, 9, 14, 16, 28, 30
      • 5-6 student presentations per class
      • Sign up for one of the class dates
      • Attendance (when not presenting) will be part of your project grade
      • 2nd Exam may include student presentation material

Assignment:

  • Identify your target investment properties for the Shark Tank assignment

 

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