11.1

1.Direct real estate investments hold legal title to the property he or she has purchased. They include investments single family houses, duplexes, apartments, land, and commercial property. While indirect real estate investments have a trustee in charge of appointing legal titles to property on behalf of an investor or group of investors. They include syndicates, real estate investment trusts, high risk mortgages, and participation certificates, all of which direct investments do not.

2.With inderect, the advantages are that you have a truste in charge of the legal title, better preformace in getting a better investment.

3.the disadvantages to both these investments are that direct is only to the one investor unlike the indirect. the indirect has a disadvantage is how high risk the investment is for the investors.

4.similaries between syndicates, REITs, and PCs are they all deal with putting monet into a real estate field whether it be investing in mortgages, real estate mutual funds, or investing in real estate in general. The differences are that syndicates are a partnership deal, whereas REITs areseveral stocks in a mutal fund disclosed to one inverstor, not necissarily shared.... and a PC is a group of mortgages invested by a group but isince it is by a group it is considered a mutual fund.

5.Telling them that since it is held by the government the government must pay what the mutual fund is, because it is federal money, that are secure as treasury bonds.

6.the advantages of real estate investments is you hedge against inflation, there is easy entry to becoming a part owner of the real estate, there is limited financial liability, so you can be a limited partner to your investment, as well as financial leverage, by borrowing funds for dirct investments purposes.