CP6611 - Introduction to Real Estate Finance and Development

Goals

This course is intended to be an introduction to the concept of real estate as an investment and land development tool.  The major goals of the course include:

• Basic real estate concepts and history
• Cash flow modeling and the use of pro-formas, including market feasibility analysis
• Public policy influence and affects on private development
• Case study: Affordable Housing finance techniques and modeling

Required Texts

Charles F. Floyd & Marcus T. Allen, 2002.  Real Estate Principals, seventh edition.  Chicago, IL:  Dearborn Real Estate Publishing, Inc.

Additionally excerpts from other texts will be made available for reading, as assigned. 

Prerequisite

Ability to create and manipulate electronic spreadsheets.

Grades

This course does not rely on true-false, multiple choice, fill-in-the-blank, or short-answer essays on standardized test forms or blue books.  Grading of each of the five assignments is subjective based on a variety of elements few of which can be clearly specified.  Creativity, clarity, presentation, correctness in calculations, and soundness of judgment are the major elements comprising grades.  Each assignment will effectively count as 20% of the course grade.

Course Outline of Topics Covered

--Basic urban economics related to and applied to real estate  

  development

--Real Estate Development Legal

  Considerations                                   

--Basic Real Estate Finance Considerations

--Basic Real Estate Finance Considerations (II)

--Valuing Property

--Property Financing Overview and History

     --Real Estate Feasibility

     --Cash Flow Analysis and the Pro forma

Rehabilitated Property

New Construction

     --Commercial & Industrial Development Analysis

--Real Estate Dev Policy: Affordable Housing

--Application of Policy: Affordable Housing Case Study