|#||Course Name||Credit Hrs||Prerequisite|
|FIN 641||Real Estate Finance||3||None|
This course will consider investment in both "stabilized" (fully operational) income properties, and development investments. It provides an overview of the real estate development and investment processes, as well as introducing 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:
- Discuss the techniques used for mortgage designs.
- Analyze the risk–return trade-off of mortgage instruments.
- Design a suitable mortgage instrument given a client’s special needs.
- Evaluate mortgage alternatives for clients.
- Discuss the operations of the mortgage market.
- Estimate annual and time-weighted Returns on Real Estate Developments and Investments.
- Real Estate Space and Asset Markets
- Real Estate System
- Central Place Theory and the System of Cities
- Inside the City: Urban Economics
- Real Estate Market Analysis
- Real Estate as an Investment
- Present Value Mathematics for Real Estate
- Measuring Investment Performance: The Concept of Returns
- The Basic Idea: DCF and NPV
- Nuts and Bolts for Real Estate Valuation: Cash Flow Performa and Discount Rates
- Advanced Micro-Level Valuation
- Use of Debt in Real Estate Investment
- After-Tax Investment Analysis & Corporate Real Estate
- Real Estate Investment Capital Structure
Rose, P. S. and Hudgins, S. C. (2012). Bank Management & Financial Services. 9th Edition. New York, McGraw Hill.