California Management Review

Abstract

Real estate is an established investment medium for pension funds and for individual investors seeking to maximize after-tax income. Successful real estate investment requires analytical and management skills, for which most nonprofessional investors rely upon real estate investment trusts (REITs) or limited partnership syndicates. Many REITs have achieved a creditable yield performance over the past decade and are highly suitable for the investor not requiring tax shelter. Analysis of the limited partnership presents greater difficulties, although track records for offerings in the 1970s can be a useful guide. Front-end loads, management cash-flow participation, and back-end loads are major considerations for the purchaser of limited partnership interests.

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