Real Estate Finance and Investment

Catalog description

The sources and uses of credit; instruments and methods of financing; the theory and practice or real estate investment analysis. FIN (R EST) 409 Real Estate Finance and Investment (3) Real Estate financial markets are rapidly changing, with new instruments and ideas introduced every day. Therefore, the emphasis of this class will be on preparing the students to tackle any new instrument that might be introduced to the market, understanding why and how people make money in the field, and be able to understand and utilize the innovations that have been introduced and are still being developed. The course will provide a broad coverage of real estate investment, finance, and valuation. We will study different measures of investment performance, the impact of the financing decision on real estate investment risks and return, and various real estate financing techniques. Specific topics include: legal considerations in real estate finance, present value concepts, fixed rate mortgage loans, adjustable rate and variable payment mortgages, underwriting and financing residential properties, income-producing properties and valuation fundamentals, leases, projecting cash flows, investment value, investment and risk analysis, financial leverage and financing alternatives, disposition and renovation of income properties, financing corporate real estate, real estate capital markets, the secondary mortgage market and REITS.