Question

large, private funds are typically created by real estate investment managers who develop an investment strategy involving which of the following? (1) the types of properties to be acquired and markets where acquisitions will be made (2) how the fund will be operated (3) when properties are to be sold (4) how the fund strategy will align with the real estate investment requirements of investors

Answer 1

Large, private funds in real estate investment are typically created by investment managers who develop an investment strategy involving the types of properties to be acquired, how the fund will be operated, when properties are to be sold, and how the fund strategy will align with the real estate investment requirements of investors.

Step-by-step explanation:

Large, private funds in real estate investment are typically created by investment managers who develop an investment strategy. This strategy involves several factors:

1. The types of properties to be acquired and the markets where acquisitions will be made.
2. How the fund will be operated.
3. When properties are to be sold.
4. How the fund strategy will align with the real estate investment requirements of investors.

By considering these factors, investment managers can create a strategy that maximizes returns for investors and meets their investment goals.

Answer 2

Real estate investment managers create large private funds with strategies that define property types, acquisition markets, fund operations, investment timing, and investor alignment to meet both managerial and investor financial objectives.

Step-by-step explanation:

Large private funds managed by real estate investment managers generally employ a comprehensive investment strategy. This approach consists of a few key elements, which include:

1. Identifying the specific types of properties to be acquired and the markets in which these acquisitions will occur.
2. Defining the operational structure for how the fund will be managed moving forward.
3. Determining the optimal timing for when properties should be sold to maximize returns.
4. Ensuring the alignment of the fund's investment strategy with the real estate investment needs and goals of the investors to attract and retain capital.

These strategies ensure that the investment funds meet the long-term financial objectives of both the management firms and the investors. Moreover, established funds with clear strategies attract various sources of financial capital, like bondholders and shareholders, who are more inclined to invest without needing a personal relationship with the managers, thanks to widely accessible company information.