Foundations of Real Estate Finance (Intended for Non-Business students)

(3 Credit Hours) · Undergraduate

The course starts by covering basic finance principles including the time value of money and internal rate of return. This course is ideal for students who may not intend to seek financial analyst focused roles in real estate. This course introduces students to the basic metrics, analytic tools, and capital sources employed in the evaluation and financing of real estate investments. The course will introduce other common real estate performance metrics such as net operating income, the cap rate, cash yields, equity multiples, and spread measures will be discussed. Basic pro forma analysis as used to evaluate existing real estate assets and development assets will be covered. Public and private debt and equity markets will be addressed as will private equity deal structures and debt underwriting. The course cannot be taken Pass/Fail. Prerequisites: ( RE 20700 or FIN 30700 ). This course will only be available to students who are not enrolled in the College of Business and do not have access to take FIN 20150 .