This module discusses the pros and cons of investing in tangible assets, including real estate, gold, oil, and other natural resources. Different types of energy master limited partnerships are covered. Real estate is addressed extensively including its advantages and disadvantages as an investment and how to calculate the value of income producing property. Real estate investment trusts (REITs) are covered in detail, including publicly traded, non-traded, and private REITs.

6-1 Explain the characteristics, risks, returns, markets, and valuation of tangible asset investments.
6-2 Explain the structure and types of energy master limited partnerships.
6-3 Explain the characteristics, risks, returns, financing methods, types, and forms of ownership of investment real estate.
6-4 Calculate net operating income and property value from real estate property information.
6-5 Evaluate the value of real estate property using real estate valuation techniques.
6-6 Explain characteristics of public, nontraded, and private REITs.
6-7 Evaluate the advantages and disadvantages of investing in public, nontraded, and private REITs.

Author: Craig Kinnunen, MS, CFP®

Craig Kinnunen, MS, CFP® is an associate professor at the College for Financial Planning. Prior to joining the College, Craig enjoyed a long and successful career in personal financial planning and wealth management. Craig’s enthusiasm for financial planning extends beyond the classroom, as he also spends time providing pro bono financial education and individual financial counseling to members of the Colorado National Guard. Craig earned a bachelor of science degree in accounting from Northern Michigan University and followed that up with a master of science degree in finance from the University of Colorado in Denver. You can contact Craig at craig.kinnunen@cffp.edu..

Complexity Level: Advanced