FIN 480 - Real Estate Finance

Units: 3
Study of equity, mortgage, lease, sale and lease-back, and innovative methods of financing residential and commercial real estate, including related tax effects. Analysis of mortgage-backed securities, including related pricing techniques.

Possible Instructional Methods: On-ground or Online-Asynchronous.
Grading: A-F grading only.
Course Typically Offered: Spring ONLY

Student Learning Outcomes - Upon successful completion of this course students will be able to:

Identify time value of money (TVM), ATIRR and NPV concepts which apply to mortgage financing and real estate investment decision-making.
Compute fixed-, adjustable-rate and other alternative mortgage payments.
Construct pro-forma statements for alternative financing such as participation, interest only, convertible and sale-leaseback loans.
Analyze construction financing including the construction and permanent (take-out) loan.
Construct limited partnerships financial analysis including ATIRR and NPV.
Examine REIT financial statements for investment decision-making such as understanding the importance of FFO.
Compute pricing of MBSs including secondary mortgage market related derivative securities and applying option pricing techniques to price MBSs while incorporating prepayment and default risks.
Compute duration for MBSs and understanding the effects of convexity on MBS pricing.