Assignment
In the Learning Team assignment from last week, you learned that there are many different types of commercial real estate that real estate investors can consider today. In addition to determining which type of property is most desirable, the real estate investor must also determine the best method for acquiring the commercial property.
Write short-answer responses for each of the following questions in a paper totaling between 700 and 1,400 words:
1. What are the more popular methods by which real estate investors acquire commercial real estate today? Describe at least three methods and discuss the pros and cons.
2. One popular method of acquiring commercial is through a lease. What are the pros and cons of leasing commercial property as a means of acquiring ownership and/or a means of controlling the property?
3. Once a real estate investor has acquired a property, the investor may lease the property to a third party to generate income. What are the pros and cons of such an arrangement? Describe the process of leasing a commercial property to another party. And, describe the lease provisions common to commercial real estate.