REAL 7830: Real Estate Finance

The mission of this course is to apply financial economic theory to real estate financial institutions and markets to explain how changes in the economic or financial environment affect real estate financial decision making. The course concentrates on residential and commercial real estate finance. First, basic discounting as it relates to present value, annuities, yield, and bond pricing are discussed. Second, basic residential real estate finance focuses first on fixed and adjustable rate mortgages and the mortgage choice decision. Next, the refinancing decision is examined with an extended discussion on creative financing methods such as wraparounds, buy-downs and second mortgages. The secondary mortgage and the use of mortgages as derivative assets are discussed. Commercial real estate issues center on leveraging, the impact of tax laws, and the financing of properties using equity participation and sale lease-back agreements. The course closes with the flexible opportunity to explore current relevant topics that are of special interest. Offered every year.

Not open to students with credit in REAL 9830.

1.5 hours