REAL ESTATE

INVESTMENTS

QUESTIONS TO ASK BEFORE PURCHASING A REAL ESTATE INVESTMENT

•    How liquid is the investment?
•    Is it being professionally managed (disciplined investment strategy)?
•    How diversified is the investment?
•    Can it provide current income?
•    What is the minimum investment amount?
•    What risks, and costs are associated with the investment?

SUITABILITY STANDARDS THAT HAVE TO BE MET (FALLS UNDER ONE OF TWO CATEGORIES)

1. A net worth of at least $250,000*; or gross annual income of at least $70,000, and a net worth of at least $70,000.

2. A net worth of at least $1,000,000*; or gross annual income of $200,000 (or $300,000 jointly with his or her spouse) in the two tax years immediately preceding the proposed investments and the expectation of the same level of income in the year of the investment.

*The equity in your personal residence cannot be included in the net worth calculation.

Because real estate investments can be complex we recommend you first read our two free articles, "Real Estate, and Real Estate Investment Trusts (REITs)." Please  input your information below and we will send them to you.