EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED

QUALITY MANAGEMENT SYSTEM

City of Dasmariñas,Cavite

Commercial Real Estate

Analysis and Investment
BRM8 31

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EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED
QUALITY MANAGEMENT SYSTEM
City of Dasmariñas,Cavite

Setting Goals
1. Goals must be attainable
2. goals must be measurable
3. goals should be tied to a time
4. goals must be clearly defined

• Goals must be SMART

• Specific ,measurable, attainable , realistic & time bound

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EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED
QUALITY MANAGEMENT SYSTEM
City of Dasmariñas,Cavite

Characteristics of Real Property Investments

a. Fixity
b. Longevity
c. Permanence
d. Risk
e. Market Segmentation

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EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED
QUALITY MANAGEMENT SYSTEM
City of Dasmariñas,Cavite

Supply and Demand in Real Estate

Buyer’s Market – indicates a surplus of supply, and a downward price

trend, favoring the purchaser

Seller’s Market – supply is short and demand is high

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EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED
QUALITY MANAGEMENT SYSTEM
City of Dasmariñas,Cavite

Purpose of Investing in Real Estate

• To preserve capital
• To earn a profit
• To enjoy tax relief

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EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED
QUALITY MANAGEMENT SYSTEM
City of Dasmariñas,Cavite

Advantages of investing in Real Estate

• Relatively High Yields
• Leveraging Opportunities
• Income Tax Flexibility
• High Degree of Personal Control

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EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED
QUALITY MANAGEMENT SYSTEM
City of Dasmariñas,Cavite

Disadvantages of investing in Real Estate

• Relatively Poor Liquidity

• Large Capital Requirements
• Necessity of Constant Management
• Landlordism
• Risk

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EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED
QUALITY MANAGEMENT SYSTEM
City of Dasmariñas,Cavite

Ownership Interests in Real Property

A. Individual Ownership
B. Group Ownership
- Corporations
- Parnerships
C. Trust Ownership

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 EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED
QUALITY MANAGEMENT SYSTEM
City of Dasmariñas,Cavite

Individual Real Property Ownership

Types Relationship Consequence of Death
Tenancy by entirety Husband & wife only automatic survivorship
Tenancy in common Anybody Inheritable
Community property Husband & wife only Inheritable
Joint tenancy anybody,usually family members Automatic survivorship
Sole & separate married person’s right/living spouse Inheritable
Severalty unmarried,divorced person,widow Inheritable
Dower & Curtesy Surviving spouses Inheritable

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EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED
QUALITY MANAGEMENT SYSTEM
City of Dasmariñas,Cavite

4 General Characteristics of Corporations

• Continual Life
• Centralized Management
• Limited personal liability
• Easily transferrable interests

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EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED
QUALITY MANAGEMENT SYSTEM
City of Dasmariñas,Cavite

Property Investment in form of Partnership

• Partnership are used to join investors together to share in potentially
profitable venture.
a. General Partnership – gives each participant an equal voice in
the management despite the
proportionate share of ownership
b. Limited Partnership –the general partner, assumes full
responsibility for management

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EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED
QUALITY MANAGEMENT SYSTEM
City of Dasmariñas,Cavite

Property ownership in the form of a Trust

• This form of ownership directs a trustee to hold the legal title to

property in trust for specified beneficiaries and to follow the
directions established in the trust agreement for the management of
properties involved.

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