Assignment 1 (Chapter 13 in the textbook): Environmental risk is of great concern to real estate investors because of the significant costs that can be associated with mitigating this type of risk. Visit one of the sites recommended in the Useful Websites for this chapter, such as www.environmental-center.com, or use a search engine like Google (www.google.com) and search for environmental risk. Select a type of environmental risk and summarize the nature of the risk and why it is a concern for real estate investors.
Assignment 2: In addition to the federal tax credits discussed in the chapter (Chapter 14 in the textbook), there are additional tax credits and other economic incentives available for renovation of certain types of property in most states. Research and summarize any state tax credits or other economic incentives available in a state that you select. Summarize the nature of the incentive and how you think it might encourage renovation of properties.
Assignment 3 (Chapter 15): A type of off-balance-sheet financing called synthetic leases became popular in recent years as a way for corporations to structure leases on real estate. Many tech companies financed the construction or purchase of their corporate headquarters with these types of leases. Use a search engine to find either a company that has used this method or a site that discusses how these leases work. What were the major advantages and disadvantages of this lease structure? Are they still being used?