Blended Teaching
Real Estate Finance

Real Estate Finance

Overview

Real estate is one of the largest investable asset classes in the world. And where there is scale, there is money. There are entire industries dedicated to financing the development, construction, acquisition, and sale of real estate and securitized instruments. As evidenced in the GFC of 2008, real estate finance is at the heart of the global economy. You are about to learn the essentials.

Learning Objectives

  1. Excel for Real Estate Finance: Navigate Excel, develop conditional statements, manage dates, manipulate data, analyze data sets, perform essential functions, apply formatting techniques, and implement fundamental formulas.

  2. Advanced Time Value of Money: Calculate present and future values of annuities, as well as payments, periods, and rates of return, using financial calculators and Excel.

  3. Mortgage Fundamentals: Understand the function of promissory notes, key elements of security interests, mortgage repayment processes, mortgage components, mortgage calculations, and implications of mortgage defaults and foreclosures.

  4. Residential Borrowers: Understand mortgage components, evaluate mortgage types, differentiate mortgage products, analyze refinancing decisions, and assess the economic benefits of refinancing.

  5. Residential Lenders: Understand primary and secondary mortgage markets, analyze lender revenue and risks, calculate loan affordability, evaluate lending risks, and apply the sales comparison approach.

  6. The Mortgage Markets: Evaluate the impact of securitization on the historical evolution of mortgage markets, explain the products of the mortgage markets, and calculate the pricing of mortgage-backed bonds.

  7. Commercial Lenders & Borrowers: Understand the benefits and risks of using debt in CRE transactions, evaluate the impact of leveraging debt, compare different types of commercial loans, and calculate financial ratios used in commercial lending.

  8. The Impact of Financing on Returns: Build and analyze DCF models, design formulas for cash flow models, apply leverage analysis, and develop models for various lease treatments and rental arrangements.

Topics

I. Introduction
II. Foundations
III. Residential Mortgages
IV. Commercial Mortgages