Real Assets & Foreign Investments walks students through the basic characteristics and use of tangible investments (other than real estate), evaluating their unique risks, challenges in valuation, and usage in client portfolios. After tangible assets, the various methods of investing in real estate (REITs in detail) are covered along with a discussion of income-producing real estate valuation methods, advantages and disadvantages of investing in real estate, and the factors to consider when making real estate investments. The course ends with a brief overview of foreign investments, American Depository Receipts (ADRs), and the effects of currency exchange rates on foreign investments.

9–1 Explain the characteristics, risks, returns, markets, and valuation of tangible asset investments.
9–2 Explain the characteristics, risks, returns, financing methods, types, and forms of ownership of investment real estate.
9–3 Calculate net operating income and property value from real estate property information.
9–4 Evaluate the value of real estate property using real estate valuation techniques.
9-5 Explain the characteristics, risks, advantages, and disadvantages of investing in foreign securities.
9-6 Analyze the effect of exchange rate changes on foreign security returns.

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: Intermediate