Memo format and questions updated Spring 2023

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School

Kenyatta University School of Economics *

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Course

MISC

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Business

Date

Nov 24, 2024

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docx

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Uploaded by GeneralParrotPerson786

INTEROFFICE MEMORANDUM TO: PATTY BOYLE FROM: YOUR NAME SUBJECT: ENTER SUBJECT DATE: ENTER DATE SOURCE: HTTPS://WWW.ENTREPRENEUR.COM/STARTING-A- BUSINESS/THE-ENTREPRENEURS-GUIDE-TO-BUILDING- WEALTH-THROUGH-REAL/456179 What is the main subject of the article? The main subject of the article is building wealth through real estate for entrepreneurs. The article explores different ways in which entrepreneurs build wealth through real estate. The article gives tangible examples and success stories of entrepreneurs that have built wealth through real estate. How does the article relate to a topic in this course? From which chapter? You must cite at least three specific examples of the connection to the course comparing what is in the article to what is in the text. 1. The article relates to this course in the chapter about financial management and investment because it talks about generating wealth through real estate by entrepreneurs which is a form of investment. The business function known as financial management is responsible for allocating the available financial resources to maximize business success and return on investment (ROI).

2. Business Strategy and decision making- The article is related to this chapter because in order to generate wealth in real estate, as an entrepreneur you have to have a strategy and also make informed decisions. 3. The article also relates to this course in the chapter about marketing. The article's attention on real estate investment, land improvement, and property appreciation relates to marketing. While settling on land speculation choices, it is vital to comprehend market patterns, interest for specific property types, and customer inclinations. This association is relevant to the course's discussion of how market research and analysis may help guide corporate plans. At this time there is considerable concern about a widespread economic recession. In your opinion, and from what you have learned from this article, do you think the article indicates there will be a greater or lower chance of a recession. Will its impact be felt locally, nationally, or internationally? The article suggests a decreased likelihood of recession, in my view. The article's content suggests that the discussed tactics, including real estate investments trusts (REITs), rental properties, and property appreciation, have historically proven resilient even during recessions. These tactics offer the possibility of long-term value appreciation or a diversified income source, both of which may lessen the effects of a recession. As a result, the article implies that there may be a decreased likelihood of a serious adverse effect on real estate-based wealth creation (Chazanas, 2023). Understanding how a recession affects the real estate market is crucial in the modern economy. Recessions can have a significant impact on loan availability, rental rates, and home prices. Additionally, it can result in less building and development. The article also talks about investing in 2

commercial real estate. This indicates that there can be a greater chance of recession. All real estate assets are affected when a recession hits. Commercial real estate is no exception. The revenue flows for investment real estate including retail strip centers, warehouses, office buildings, and multi-family housing are mostly dependent on other businesses paying the rent. Businesses either close their doors during a recession or make cuts to save money. Less money is ultimately paid toward commercial property leases, which makes borrowing and re-financing considerably more difficult. Recessions have complicated effects on the real estate market that might differ depending on region and property type. Economic uncertainty may cause volatility in local real estate markets, but specific tactics, such as investing in rental homes and commercial real estate, may have a more limited effect. The national and worldwide real estate markets, however, may be more affected if the recession is severe and extensive. What is the impact to consumers? Consumers can learn a lot about a variety of land venture systems from the article's experiences, including buying investment properties, investing in land appreciation, trading commercial real estate, and developing undeveloped land. Consumers will wish to reach well-informed decisions regarding expanding long-term financial security and opening doors in the real estate industry with the aid of these tactics. It empowers clients to expand their speculation portfolios and perhaps arrive at monetary flourishing by giving various arrangements that are taken special care of different gambling resistances, monetary capacities, and levels of commitment. 3

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Why is the article of interest to you? I find the article interesting to me because it offers helpful advice on how business owners can use real estate as a tool for wealth creation. The potential of different investing techniques is illustrated by the examples and success stories (Chazanas, 2023). Additionally, it emphasizes how crucial it is to comprehend economic conditions, risk concerns, and market trends while making real estate investment selections. As I am always interested in learning more about how real estate investing and entrepreneurship intersect, I therefore found this article to be a useful resource. This article is also of interest because it offers different avenues of wealth creation. Real estate can be used in a variety of ways to increase wealth. Whether an investor picks rental properties, profits from appreciation, invests in REITs, or decides to flip houses, real estate offers huge possibilities for wealth growth. Real estate investment is still a tried-and-true method for generating income for business owners, even though success sometimes requires research, financial savviness, and patience (Chazanas, 2023). The aforementioned instances show that those who are prepared to put in the time and effort can gain significant financial benefits, assuring their path to lasting riches. 4

Reference Chazanas, A. (2023). The Entrepreneur’s Guide to Building Wealth Through Real Estate . Entrepreneur. https://www.entrepreneur.com/starting-a-business/the- entrepreneurs-guide-to-building-wealth-through-real/456179 5

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