Course Objectives, Requirements & Contents

This course will provide participants with a general understanding of real estate finance and investment with an emphasis on housing investment generally and affordable housing investment in particular. The course uses cases studies to help illustrate concepts and their applications. Participants will become familiar with the tools and the language of real estate finance and affordable housing investment. By the end of the course students will be able to conduct feasibility analyses of potential real estate projects that measure both the economic and social benefits of the project.

The major teaching contents include the following:

1. The basic legal concepts about real estate finance and investments

2. Mostly used real estate financing approaches: Notes and Mortgages

3. Mortgage loan foundations: The time value of money

4. Fixed interest rate mortgage loans

5. Adjustable and floating rate mortgage loans

6. Mortgages: Additional concepts, analysis, and applications

7. Single family housing: Pricing, investment and tax

8. Underwriting and financing residential properties

9. Income-Producing properties: Leases, rents, and the market for space

10. Valuation of income properties: Appraisal and the market for capital

11. Investment analysis and taxation on income properties

12. Financial leverage and financing alternatives

13. Risk analysis

This course is a specialized optional provided, mainly, in lecturing method with the help of in-class discussions.

Credits: 2