Research should include the
- roles involved in real estate investing
- costs involved in real estate investing
- risks involved in real estate investing
- potential rewards involved in real estate investing, to include a discussion of the concept of leverage
- financing options available for investment properties.
DPOR correlations: 18VAC135-20-400. 12 (Investment); 18VAC135-20-400. 14 (Real estate financing); 18VAC135-20-400. 20 (Appraisal of residential and income-producing property)
Process/Skill Questions:
- What are the objectives most real estate investors hope to achieve?
- Who qualifies for investment property financing, after considering the buyer’s ability to pay?
- What are the financing considerations that must be made before an investment purchase?