Real Estate Development and Finance I

4 units · Graduate courses (200-299)

Lecture, three hours; laboratory, 90 minutes. Covers core principles of and critical decisions within real estate development and finance. Students learn how to create and use proformas from scratch in Excel to understand asset value and analyze and compare real estate investments. Topics include core real estate finance concepts—discounted cash flow (DCF), net present value (NPV), internal rate of return (IRR), net operating income (NOI), amortization, cap rates, etc.—the fundamentals of thinking about real estate, the development process, risk/reward, opportunity costs, leases, the use of debt and equity, and waterfalls. Letter grading.