FINC310

Real estate Investment is a broad field requiring both operational and financial expertise. It is a deeply local business that brings together many different components that work together to create a coherent financial investment. The analysis of real estate investments requires detailed knowledge of many different variables including:
• The Physical Property (building construction and operation)
• Real Estate Market Dynamics (supply and demand for rental property)
• Financial Market Dynamics (interest rates and the cost of capital)
• Property Property-Level Financial Modeling (income and expense statement derivation)
• Capital Structuring (senior and subordinate debt, mezzanine debt and preferred equity)
• Debt and Equity Investor Risk and Return Criteria (real estate investor sentiment)

Mastering both real property analysis and financial analysis is critical to making informed decisions that meet specific investment criteria.

Real estate is also an alternative investment that is secured by a physical asset. As such, the industry has its own institutional features and investment structures. This Real Estate Finance course aims to provide students with a broad overview of the real estate field directly applied to real estate investment analysis. Topics will include:
• Real Estate from an Investor’s Perspective
• Risks and opportunities inherent to Real Estate Investment
• Financial Analysis of Real Estate Investments at the Property Level
• Real Estate Appraisal and Valuation
• Before Tax and After Tax Real Estate Return Analysis
• Different approaches to Structuring Debt for Real Estate Investments
• Different approaches to Structuring Equity for Real Estate Investments
• Investment Alternative Analysis including IRR, NPV and ATCF Comparison