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Fin 590 Week 3 Case Study

Portfolio of Real 2Portfolio of Real Estate InvestmentsInvesting in RealityI am able to obtain a loan from the bank for up to $10,000,000 at 7% interest rate and wants to invest my money in US real estate. Researching on realtor.com, I was able to find three real estate properties that are currently listed for sales in Chicago, IL, that would be great properties for me in creating my portfolio of real estate investments. I have chosen Chicago because of its abundant incredible real estate investment opportunities. As the third largest city in the U.S., it has a very stable economy, and real estate that costs only a fraction of the prices that you will find in New York or Los Angeles. Due to its large metropolitan population, there is no shortage of potential investment properties, or tenants for those properties. The first property is located in 3601 West 53rd Street, Chicago, IL, USA. It is a multi-family home with two stories and 12 rooms in the area of 19215 sq. ft at the cost of $3,800,000. The address of second property is 4500 West Fullerton Avenue that is located in Chicago, IL, USA. It is also a multi-family home with four stories and 36 rooms in 15681.6 sq. ft at $2,700,000 (REALTOR.com, 2012). Third property is situated at 6134 North Kenmore Avenue, Chicago, IL. It is a four stories multi-family home with 40 rooms at the value of $2,800,000.Calculation of the Expected Total Cost of PurchaseTotal cost of purchase includes the cost of property and property taxes of central and state government, which is applied on the property purchase. According to the Property Tax International Ltd, (2008), the US government’s property purchase tax is 5% of the cost of property. Chicago’s state governments on the other hand, property purchase tax is equal to 1.5% of the fair market value of the property (Chicago Home Estates, Inc, 2012).

Research on the Internet and the University Library to learn more about the Enron case. 

Each team member must select and research one of the following roles in the Enron case:

•Jeffrey Skilling (CEO)

•Ken Lay (business executive)

•Andrew Fastow (CFO)

•Lou Pai (business executive)

•Arthur Anderson (audit firm)

•President George W. Bush, Alan Greenspan, and the Securities and Exchange Commission

Post a summary of your research in the Learning Team forum that includes the following:

•What position did the individual hold within or outside of Enron?

•What role did the person play in the Enron case?

•How did he or she contribute to the fraud and demise of Enron?

•What were the financial ramifications to stakeholders from this individual's actions or inactions?

Complete the following as a team:

•Discuss the ethical ramifications and aspects.

•What were the root causes and the impact of the Enron case?

•What corporate governance and regulatory changes should be made to prohibit a future Enron?

Write a paper of no more than 1,050 words summarizing the main outcomes of your team discussion to the questions above.

Format your paper consistent with APA guidelines.

Click the Assignment Files tab to submit your assignment.