REA3015 - Leadership and Entrepreneurism | Dana Rowan
Course Description: This course is designed to provide real estate professionals with the critical tools of real estate finance. It begins with a description of corporate finance principles such as risk, measures of return, capital budgeting, the cost of capital and other key finance concepts. Special attention is given to debt instruments such as mortgages, a key source of financing for commercial real estate. Mortgage math, a skill that is needed for developing financial statements to be used in award winning presentations as a developer, receives significant attention. Students learn and use pro forma analysis along with assessment of sources of debt, market revenue assumptions, cost of construction, operating costs and other critical financial components. Topics will also include leasing and property income streams, equity valuation, tax analysis, the financial structuring of real property ownership and discounted cash flow and internal rate of return analysis. There will also be a focus on developing an understanding of the economic factors that shape and influence the markets for real property. This includes an analysis of housing as well as commercial real estate, and covers demographic analysis, regional growth, construction cycles, and urban land markets. This will be supported by exercises and modeling techniques for measuring and predicting property demand, supply, vacancy and prices.
Philip Taylor. May 1, 2012. Park Place Expensive Real Estate Monopoly. Retrieved June 17, 2020 from Flickr.