This course will consider investment in both "stabilized" (fully operational) income properties, and development investments. and provides an overview of the real estate development and investment processes, as well as introduces students to various disciplines, professionals, and industry sectors, and how they interact and participate in these processes. Students learn to apply direct capitalization models and discounted cash flow models to estimate real estate values by converting future income expectations into present values. These values are compared to current costs and prices to determine the financial feasibility of proposed projects and existing properties. The concept of highest and best use is also introduced and discussed.

After completing this course, the student will be able to:

1. Understand the techniques used for mortgage designs.
2. Analyze the risk–return tradeoff of mortgage instruments.
3. Design a suitable mortgage instrument given a client’s special needs.
4. Evaluate mortgage alternatives for your clients.
5. Understand the operations of the mortgage market
6. Estimate annual and time-weighted Returns on Real Estate Developments and Investments

1. Introduction of Real Estate Space and Asset Markets
2. Real Estate System
3. Central Place Theory and the System of Cities
4. Inside the City I: Some Basic Urban Economics
5. Inside the City II: A Closer Look
6. Real Estate Market Analysis
7. Real Estate as an Investment: Some Background Information
8. Present Value Mathematics for Real Estate
9. Measuring Investment Performance: The Concept of Returns
10. The Basic Idea: DCF and NPV
11. Nuts and Bolts for Real Estate Valuation: Cash Flow Performa and Discount Rates

Brent W. Ambrose, WenlanQian& Abdullah Yavas, Real Estate Economic .American Real Estate and Urban Economics Association(Clarivate Analytics). 2020.