Tuesday, September 30, 2008

Customers, Licensing, etc?

When you are going to invest into a company one of the most important things is to find out how they make money. Do they sell products directly to a consumer, or do they manufacture a product for wholesale? Do they market services? Is it strictly business to business? These are the things you need to figure out. If it is a real estate company then they have likely designed an investment vehicle that is probably pooled funds. So in this case it is the buying and selling of real estate for a profit that is the underlying business model being used.