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Alternative InvestmentsModule 3 of 3

Real Estate, Infrastructure, and Hedge Funds

5

Concepts

2

Formulas

1

Decisions

2

Quiz Questions

Key Concepts

5 concepts covered in this module.

Real Estate Investment

Direct: own property. Indirect: REITs, funds. Income + appreciation. Cap rate = NOI/Property value.

REITs

Real Estate Investment Trusts: traded like stocks. Must distribute 90%+ of income. Liquid exposure to real estate.

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Formulas

2 essential formulas for this module.

Cap Rate

Cap Rate = NOI / Property Value

Where: NOI = Net Operating Income

Value from Cap Rate

Property Value = NOI / Cap Rate

Where: Lower cap rate = higher value (lower risk)

Decision Frameworks

1 decision frameworks to guide your analysis.

Direct vs REIT real estate investment?

  • Direct: full control, tax benefits, higher returns potential
  • REITs: liquidity, diversification, professional management, lower minimum

Mind Map

Visual overview of how concepts connect in this module.

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Flashcard

Real Estate Investment

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Answer
Direct: own property. Indirect: REITs, funds. Income + appreciation. Cap rate = NOI/Property value.
Sample 1 of 5
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