Apartment Investment Opportunity

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 investor typically has varying investment goals and objectives, 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 apartment 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 impact the final recommendation.