In the investor profile and criteria case study, which of the following is not one of William’s real estate investment criteria?
A. Profitable rate of return
B. Monthly income stream
C. High burden of management
D. Low burden of management
Answer (2)
In the context of William’s real estate investment criteria, we need to identify which of the given options is not part of his investment preferences. Let's break down the possible criteria:
Profitable rate of return : This criterion refers to the expectation that the investment will yield a return that exceeds the costs and offers profit. Investors typically seek a profitable rate of return as a primary goal.
Monthly income stream : Some investors look for investments that provide regular income, such as monthly rent payments. This criterion is significant for those who rely on ongoing cash flow.
High burden of management : This refers to investments that require a lot of time, effort, and resources to manage. Generally, investors tend to avoid high management burdens unless they have the capacity to handle them or see a higher potential reward.
Low burden of management : Conversely, a low burden of management means the investment requires minimal effort to maintain, making it more attractive to those who prefer a hands-off approach.
Given these definitions, the option that does not fit with typical investment criteria for attractiveness is 'High burden of management.' Investors usually prefer opportunities with a low burden of management unless there is a significant return to justify the extra effort.
Therefore, the correct answer is: High burden of management.
The option that does not fit William's real estate investment criteria is 'High burden of management.' Investors usually prefer properties that require less management effort. Therefore, the correct choice is C.
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