Real Estate Finance

(3 Credit Hours) · Undergraduate

The course assumes students already have a strong background in basic finance principles including the time value of money and internal rate of return covered under FIN 20150 . This course advances students to the metrics, analytic tools, and capital sources employed in the evaluation and financing of real estate investments. The course expands common real estate performance metrics such as net operating income, the cap rate, cash yields, equity multiples, and spread measures will be discussed. 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. This course is for Mendoza majors or students who have taken Foundations of Finance or its crosslists in Mendoza. Prerequisites: ( FIN 20150 , BASC 20150 , BAAL 20150 or BAEG 20150 ) and ( RE 20700 or FIN 30700 ). Finance Majors cannot take this course and should take FIN 40710