333-307 Real Estate Finance

333-201 Business Finance and 333-207 Introduction to Real Estate Analysis.

Real estate is the largest asset class in the investment universe. It consists of everything from the single-family home to real estate-backed derivative products. This course introduces the specialized financial principles needed for portfolio and investment decisions for this diverse asset class. The subject will focus on understanding the primary sources of value in real estate based investments and on assessing the risks to this value. Potential topics include techniques in real estate financing, capital structure in residential and commercial real estate markets, innovations in real estate financing, contingent claims and real options in real estate markets, lease contracts and the valuation of options imbedded in real estate backed assets.

• High level of development: problem solving; statistical reasoning; application of theory to practice; critical thinking; use of computer software.

• Moderate level of development: written communication; collaborative learning; team work; interpretation and analysis; synthesis of data and other information; evaluation of data and other information;

• Some level of development: oral communication; accessing data and other information from a range of sources.

A 2-hour end-of-semester examination (50%) and assignments totalling not more than 5000 words (50%).