REAL ESTATE INVESTMENT

Real Estate Investment



Real Estate Investment

Chapter I: Introduction

Outline

This research focuses on the various aspects of Real Estate Investment and comprises of the following chapters:

Introduction

Literature Review

Proposed Methodology

Rationale

This study highlights many issues related to Real Estate Investment and gives a broad analysis of obtaining finance for new office developments in the UK in the post credit crunch era are going to influence on the quantity of new office developments and office space rent prices in the UK. Acquiring finance is a major consideration for any business and it can seem to be a daunting task at times. However, with careful planning and consideration, it would be easier to arrange for acquisition of finance through the right sources. An entrepreneur needs to have a clear view of the various methods of finance (internal & external) to select the appropriate one.

It is also very important to know about the funding pattern of different industries and the amount and extent to which help is available in the industry. There are some key issues the firms face for acquisition of finance which are stated in the below mentioned points.

This assignment has been done with a view of acquiring entrepreneurial finance for new office building developments. Also, mentioned are the institutions where the Government extends finance facilities through various schemes. It also shows the problems and probable solutions with suggestions to curb the difficulties in acquiring finance.

 

Problems of Entrepreneurial Business finance

1) Acquiring loans from institutions and government bodies - The process of acquiring loans takes a long procedure, which is generally complicated. The co-laterals associated with it are also proving to be a problem.

2) Preparing a feasible business report - It is one of the prime requirements of acquiring a loan. It has to show how feasible the idea is in terms of providing the revenue required to pay back the loan and the interest associated with it. It has to cover all the aspects of the firm. It doesn't matter how innovative the idea is, the aim remains on when the profits come in. There lies limited specialist knowledge of products and sectors in some of the reports which is particularly the area of concern to the authorities providing finance.

3) An accounting balance sheet - The institutions giving loan aren't really interested in the 55 page accounts but they need the proper 4 pages of accounts which show the exact estimated cash flow and the places where the money would be invested in. They want to make sure there is proper allocation of resources so that the loan is re-paid on time. Ignorance of application procedures for Debt and Equity are very common problems in not getting the required finance.

4) Expected profit - The banks or loan providing individuals need to know the expected rate of growth and profit that could be reaped through accounting techniques and formulas and other means. It can be shown in a forecasted form the ratio's which are expected to ...