1.How would you adjust the broker's pro forma assumption for each property? Be sure to justify any...
Question:
1.How would you adjust the broker's pro forma assumption for each property? Be sure to justify any changes you suggest and provide sources that support your view.
2.Using the format presented in Exhibit 5, how would you develop an optimistic, pessimistic, and most likely analysis for each property?
ABSTRACT. The purpose of this case is to present the challenges facing individual, taxable investors when evaluating multiple investment opportunities. Many individual investors rely on investment advisors or local brokers to source and underwrite investment opportunities. While each individual investor typically has varying investment goals and objectives driven by their individual financial circumstances, an analyst can develop a sound approach for evaluating investment opportunities.In this case, a local broker who has worked previously with several family members over the years has presented three Chicago area apartment investment opportunities to two cousins. Issues related to the investor's overall real estate targeted total return and risk appetite, property performance characteristics, and market demographics all play a role in the analysis and will impact the final recommendation.