Real Estate Finance & Investments — Peter Linneman Chapter 1

Chapter One

Real estate finance is all about risk and opportunities.

Here are the risks:

• Operating costs — utilities, property taxes, maintenance salaries, insurance, and numerous other costs are likely to fluctuate throughout the life of a lease
• Vancancy — tenants move in and out on their own terms, can you ensure that someone will be living in all units at all times?
• Natural Disaster — properties can be in hurricane…