Investment and risk are referred as the two sides of a same picture. We are well aware with the fact that the investment which has a higher risk then higher amount of return must be associated with it or vice versa. The field of risk management has its own indispensability which goes side by side with the dilemma of investment. Market risk, Credit Risk, Operational Risk, Investment risk are some risks which have to face by the financial institutions and other Asset Management Companies (hereafter AMC).
The investment in real estates has its own indispensability, which we will cover in this short analytical report. Basically we have to select a book in which the topic which we want to cover is duly present. The book which we have selected is “Factors Driving International Real Estate Investment” by Dr. Klaus Spreman (2003). The first chapter in the book is about an Introduction to Real Estate Investment. The first chapter elaborates the basics of Real Estate Investment. In general Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development. Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive, the link of the book which we have used is, http://www.scribd.com/doc/12816427/Factors-Driving-International-Real-Estate-Investment, Chapter # 2 and 3 of this book is quite important as far as real estate investing is concerned which comprises on the chapters Financing Notes and Mortgages and the interest factors in Financing respectively. Both these chapters are quite important from the investment point of view which shows about the mortgages and the fluctuation of interest rate and its effect on the investment portfolio. The link which has been mentioned above is the same for either chapter as well. Chapter 4 and chapter 5 of this book shows different mortgages loan available for the investors. The chapter is good especially for those people who are new in the investment or real investment field. Chapter 6 and 7 are the most important chapters of this book in which the reader will read about the valuation and analysis of real investing. Apart from investing activities, the chapter is also helpful in defining the tax consideration for the investors. The same link, http://www.scribd.com/doc/12816427/Factors-Driving-International-Real-Estate-Investment, has also been used for the reading. Chapter 8 of this book is about the underwriting of the securities. Underwriting refers to the process that a large financial service provider (bank, insurer, investment house) uses to assess the eligibility of a customer to receive their products (equity capital, insurance, mortgage, or credit).
The name derives from the Lloyd’s of London insurance market. Chapter 9 and 10 is also important from the investing point of view in real estate. Chapter 9 of this book elaborate the other mode of financing like leasing, while chapter 10 includes the analysis, valuation and appraisal methods of your investment followed by a strong conclusion. All you have found in the book which can be see on the below mentioned link, http://www.scribd.com/doc/12816427/Factors-Driving-International-Real-Estate-Investment”