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Lesson Plan: Understanding Real Estate Investment through Property Field Trip
Grade Level: High School/College Students
Subject: Financial Literacy / Personal Finance
Duration: 90 minutes (1.5 hours)
Objective: Students will learn about real estate investment by visiting an investment property and fostering a landlord mindset. They will explore key concepts such as property valuation, rental income, and investment potential and reflect on how these factors influence investment decisions.
Materials Needed:
Pre-visit handout on real estate investment concepts
Observation and reflection worksheet
Calculator (for calculations during the visit)
Standards:
National Standards for Financial Literacy: Investment Decisions
Common Core Mathematics Standards (for financial calculations)
Pre-Visit Preparation (30 minutes):
Introduction to Real Estate Investment (15 minutes)
Lecture: Introduce the fundamentals of real estate investment. We explained key concepts such as:
Property Valuation: Methods for determining the value of a property (e.g., comparable sales, income approach).
Rental Income: How rental income can generate profit and how to estimate potential rental income.
Expenses: Common expenses associated with owning investment property (e.g., maintenance, property taxes, insurance).
Return on Investment (ROI): How to calculate ROI and its importance in evaluating investment potential.
Preparation for the Field Trip (15 minutes)
Provide an overview of the investment property they will visit. Discuss what they will observe, including the property's features and investment potential.
Explain how the field trip will help them see these concepts and reinforce their understanding of real estate investment.
Field Trip to Investment Property (60 minutes):
Property Tour and Observation (45 minutes)
Guided Tour: We conducted a tour of the investment property with a realtor and the investor, focusing on location, condition, and features.
Discussion Points:
Observe the property's condition and amenities.
Discuss how location and property features can impact rental income and value.
Examine any potential maintenance issues or additional costs.
Next Financial Field Trip: Bureau of Engraving & Printing
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