Section 11.1

1. Some examples of direct investment are single-family homes, duplexes, apartments, lands, and commercial property, and some examples of indirect investments are real estate syndicates, real estate investment trust, high-risk mortgages, and participation certificates.
2. The advantages of indirect real estate investments are easy entry and has limited financial liability.
3. The disadvantages of direct and indirect real estate investments are illiquidity, declining property values, lack of diversification, lack of tax shelter and management problems.
4. They are all similar because the are all similar to mutual funds.
5. Participation Certificates are risk-free, and each month you can receive a check for the pricipal and interest or reinvest in the profits.
6. Teresa could invest in an REIT. REIT work much like a mutual fund, they are low risk, and you hire an independent real estate professional to carry out certain management activities.

Houses

Price: $995,000
Square Ft: 4500, 4 Bed room, 3 Bath
Located in Olympia WA
Listed 19 days on site

View this House

Price: $599,000
Square Ft: 2378; 4 Bedroom, 3 Bath.
Located in Austin Texas
Listed 12 days on site.
View This House

Keeping the Change

Families around the world are staring to save their money. They are saving their money by getting in to a program offered by Earn. It helps low income people save money for specific assets. For every dollar a person saves, Earn pays $2. To get matched with earn you must complete a series of financial-management classes and the money must go toward specific goals, such as a house or college. Some say that this plan is difficult but necessary. I think this would be a very good program. I think it could help out people who are struggling getting by.

9.2 Questions

1.The different types of stock investmens are, Blue-Chip stocks, Income stock, Growth stocks, Cyclical stocks, Defensive stocks, Large-Cap and Small-Cap stocks, and penny stocks.

2.Some sources that you can use to evaluate stock investments are Newspapers, The Internet, Stock Advisory Services, and Corporate New Publications.

3.The Numerical Measures of corporations can be used to evaluate stock investments are Current Yield, Total Return, Earnings Per share,and Price-Earnings Ratio.

5. Andrei's total return is $1100

Common and Preferred Stocks

1. Corportations issue common stocks to raise money to start up their business and then to help pay for ongoing activities.
2. Investors purchase common stocks to make money in three different ways; They profit when they recieve dividends, when the dollar value of their stock appreciates, and when the stock splits and increases in dollar value.
3. Investors investors purchase preferred stock because it is considered a safer investment than common investment.
4. They split the stock because to gain intrest in that stock.

You Want a Warranty With That?

Should you yes or no to the extended warranty? "Warranties really are a valuable purchase when you have to file the claim" says Britt Beemer, but others says is it really just money down the drain. Researches say that there isnt much difference between the price of the warranty and going and getting your purchase repaired. They say the chances of your product breaking down in the time of the warranty is very small. According to Mark Kotkin about 6 out of 10 americans said they buy warranties mosty on the big ticketed items. 30% said they never buy the added protection and 11% said they will buy it sometimes. For customers who like having their warranty there are a few simple tips to help you decide. Read the fine print; See what the store is offering to you and what are the catches. Do your homework; Make sure the plan isnt a duplication or altered version of the stores guarantee. Do extra-Credit homework; Check to see that the store hasnt changed or in the process of changing their plain. Know the life spanl; Not all warranty last forever check to how long your warranty is. Calculate the cost; There could be charges tied to a certain plan. Alson bargin at purchase time; many retailers are giving deals on warranty, make a deal with the retailers. I think that these few tips are good tips to follow, and could help you save money in the long run.

Investment Spreadsheet

Investment SpreadSheet