English For Real Estate: Investor Types (Part II)

English For Real Estate: Investor Types (Part II)

Property developer, insurance company,
sovereign wealth fund? Real estate investors come in different shapes and
sizes. Today I’m going to talk about some of the most prominent types of real
estate investors. Hey everyone, this is Jennie from Real Estate English Academy,
the place for real estate professionals to boost their English. Today, in part two
of our three-part series, I’m going to talk about different types of real
estate investors. We’ll look at what those investors do and I’ll give you
some specific terminology that you can use to boost your English when talking
about real estate investment. But before we dive in, please subscribe to our
channel and hit the bell button to turn on notifications if you want to see more
videos like this one. And if you want to test your knowledge of investor types,
click on the link in the video description and take our quiz! Let’s
start off today’s lesson by talking about a real estate investor that you
might not think of right away: Property developers! Property developers,
or property development companies, invest in vacant lots,
land sites or properties in need of renovation or rebuilding. With their
investment, property developers attempt to put land to its most profitable use
by means of construction or improvement activities. Some key elements involved
here are having or obtaining a building permit from the city or local government,
which gives the property developer permission to build and develop the site,
and making sure the site is zoned for the kind of development that they are
planning. Zoning refers to the usage type designated by the city for that site
within the scope urban planning measures. For example, a
site can be zoned for retail, commercial, industrial, special-purpose or
residential use. In some cases, a property developer might decide to demolish any
stock buildings on the site and construct a new building, which is also
sometimes referred to as a new build. The term stock building here refers to
buildings that are already in place on the site as purchased by the property
developer. In other cases, a property developer might be interested in
renovating a stock building located on the site or converting the stock
building for a different use. One example of a conversion would be turning an
office building into a residential building. Property developers work with
many different counterparts along each step of this process including
architects, city planners, engineers, surveyors, inspectors, contractors, lawyers
and leasing agents. Another type of investor frequently interested in real
estate investments are insurance companies. In order to be insured, people
and businesses have to pay premiums, which is a specific amount of money paid
for coverage under an insurance policy. Insurance companies collect these
premiums and, in doing so, accumulate a large sum of money. Some of this money is
held in reserve to satisfy claims and pay for operating expenses. To keep money
in reserve is another way of saying to keep money in a safe place where it can
easily be accessed when needed, like a bank account. The term “claim” refers to
a demand or request made by insured parties asking the insurance company to
cover expenses or reimburse them for damage. Insurance companies, though, tend
to invest the majority of the premiums they collect in profit earning
enterprises, such as… real estate! Investing in assets like real estate is
one way that insurance companies stay profitable. The last type of investor
that we’re going to talk about today are sovereign wealth funds. Sovereign wealth
funds are state-owned investment funds that invest in different asset classes
including real estate. Most sovereign wealth funds are funded by foreign
exchange reserves held by the central bank to benefit that country’s economy
and citizens. The Norwegian state fund is the most prominent example of a
sovereign wealth fund. Already familiar with one or more of these investor types?
If so, tell me about your experience in the comments below.
Thanks for watching and don’t forget to apply the terms you learned today to your
own real estate English. See you next time!


  1. Post
    Svens Business

    Videos are Perfect. But i would rather use Emojis from smartphones today in the Thumbnail. Go on and you'll have sucsess

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