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1 Introduction to Real Estate Markets |
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1 | (75) |
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Real Estate and Career Planning |
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2 | (14) |
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2 | (1) |
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Is Real Estate a Discipline Unto Itself? Are There Scientific Principles of Real Estate? |
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2 | (2) |
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Real Estate in the Context of the Bigger Picture |
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4 | (1) |
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Real Estate Skills, Self-Assessment, and Careers Paths |
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5 | (1) |
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What Do Real Estate People Need to Know? |
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5 | (4) |
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5 | (1) |
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6 | (1) |
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7 | (1) |
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7 | (1) |
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Mortgage and Construction Lending |
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7 | (1) |
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8 | (1) |
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Institutional Real Estate Investment |
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8 | (1) |
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Competing in the Next Millennium |
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9 | (1) |
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Assessing Your Competitive Advantage |
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9 | (1) |
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Looking for Employment in the Real Estate Industry: Advice to Students |
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10 | (2) |
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Job Searching Using the Internet |
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12 | (1) |
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The Real Jobs Web Site at http://www.real-jobs.com |
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12 | (1) |
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Further Professional Development |
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13 | (1) |
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Professional Designations |
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14 | (1) |
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14 | (1) |
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14 | (1) |
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Discussions Questions and Suggested Exercises |
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15 | (1) |
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What Drives Real Estate Markets? |
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16 | (19) |
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16 | (6) |
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What Do We Really Want to Know? |
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16 | (1) |
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What Are the Influences Upon Rents and Prices That Matter? |
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16 | (1) |
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Where Do We Want to Know These Rental and Price Trends? |
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17 | (2) |
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How Are Real Estate Markets Unique? |
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19 | (3) |
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Short-Run Market Analysis |
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22 | (2) |
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Intermediate- to Long-Run Market Analysis: The Economic Base |
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24 | (2) |
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Forecasting the Direction of Rents and Prices Relative to Inflation |
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26 | (1) |
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The Connection Between Capital Markets and Physical Markets |
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26 | (2) |
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Inevitable Real Estate Cycles |
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28 | (1) |
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The Internet, Transport Cost, and Real Estate Markets |
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29 | (1) |
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Market Analysis by Property Type |
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30 | (1) |
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30 | (2) |
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The Supply Side and Market Data |
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32 | (1) |
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33 | (1) |
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33 | (1) |
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Discussion Questions and Suggested Exercises |
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33 | (2) |
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Central Cities and Regional Market Analysis |
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35 | (21) |
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35 | (1) |
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Key Terms: Cities, Counties, and Metropolitan Areas |
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35 | (2) |
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37 | (3) |
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Why Cities Exist---Centripetal Forces |
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38 | (2) |
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City Growth and Locations Based on Weight-losing or Weight-gaining Processes |
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40 | (1) |
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City Size and Central Place Theory |
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40 | (4) |
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Why Does All This Matter? |
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44 | (1) |
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44 | (1) |
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Weather, Technology, Entertainment, and the Exodus from Large Cities |
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45 | (1) |
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The Internet and Location Theory Implications for the Future |
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45 | (2) |
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Projecting Growth: Economic Base and the Growth of Cities and Regions |
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47 | (2) |
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Export Versus Service Sector Jobs |
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47 | (2) |
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Forecasting Growth via the Multiplier Effect |
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49 | (2) |
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Local Demographics and Immigration as a Growth or Decline Factor |
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51 | (1) |
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Fast Growth Doesn't Always Mean Higher Prices and Returns for Real Estate |
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51 | (1) |
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Local Investment and Government Incentives as a Catalyst for Growth |
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52 | (1) |
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Future Master Planned Community Models |
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53 | (1) |
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53 | (1) |
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54 | (1) |
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Discussion Questions and Suggested Exercises |
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54 | (1) |
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55 | (1) |
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Urban Land Values, Transportation Costs Impact and the Urban Form |
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56 | (19) |
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56 | (1) |
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A Threshold Concept: ``Urban Form'' |
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57 | (1) |
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Location and the Residual Nature of Land Value |
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57 | (2) |
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The Important Role of Transport Costs: The Bid-Rent Curve |
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59 | (4) |
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Distortion of Land-Use Patterns Based on Transport Routes and Multiple Economic Centers also called Nuclei |
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63 | (1) |
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Clustering Land Uses into Sectors and Zoning |
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64 | (1) |
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Considering Population Changes and Land-Use Regulation or Constraints |
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64 | (2) |
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Adding Land Constraints to the Urban Form |
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66 | (1) |
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Smart Growth Remedies to Congestion and Central City Decline |
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67 | (1) |
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Market Solutions to Traffic Congestion and Pollution |
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68 | (1) |
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More on Cities Versus Suburbs and Neighborhood Dynamics |
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69 | (1) |
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70 | (1) |
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Summarizing Some Key Influences on Urban Land Values and Form |
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71 | (1) |
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72 | (1) |
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72 | (1) |
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Discussion Questions and Suggested Exercises |
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72 | (1) |
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73 | (2) |
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2 Focusing on Property Markets by Type |
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75 | (62) |
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Residential Market Analysis |
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76 | (35) |
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76 | (1) |
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Is Home Ownership a Right? |
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77 | (1) |
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77 | (3) |
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The Aggregate Long-Term Demand for Housing |
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77 | (1) |
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Regional Demand for Housing |
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78 | (1) |
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Short-Term Demand for Housing |
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79 | (1) |
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80 | (4) |
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Economic Factors Affecting the Buy/Rent Decision |
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80 | (3) |
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Psychological Factors Influencing Home Buying |
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83 | (1) |
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Summary on the Rent Versus Buy Decision |
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83 | (1) |
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84 | (1) |
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Federal Government Agency Mortgage Assistance to Housing |
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85 | (1) |
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Federal Government Regulation Encouraging Equal Opportunity Mortgage Lending |
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86 | (1) |
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Homeownership, Age, and Mobility |
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86 | (1) |
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Housing Product and Demand Segments |
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87 | (1) |
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Analysis of the Housing Market with Focus on the Dynamics of the Rental Market |
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88 | (2) |
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Simple Population and Household Trending |
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88 | (1) |
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Developer Monitoring: The Supply Side |
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89 | (1) |
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The Integrated Development Model: Short-Term Modeling of Demand and Supply |
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89 | (1) |
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Housing Market Dynamics: Searching for Equilibrium |
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90 | (4) |
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Examples of Demand Changes |
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91 | (1) |
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Examples of Supply Changes |
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91 | (1) |
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Patterns of Possible Rental Housing Market Changes |
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91 | (3) |
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94 | (2) |
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The Growing Senior Market in the United States |
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94 | (1) |
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Types of Housing Options for Seniors |
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95 | (1) |
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More Trends in the Housing Market |
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96 | (1) |
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96 | (1) |
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97 | (1) |
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Discussion Questions and Suggested Exercises |
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97 | (1) |
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98 | (13) |
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Office and Industrial Property |
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111 | (26) |
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111 | (1) |
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Introduction to the Office Market |
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111 | (3) |
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114 | (1) |
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Office Market Demand Analysis |
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114 | (5) |
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The Influence of Computers, Telecommuting, and Shared Space |
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116 | (1) |
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Improving the Local Office Market Analysis with Industry and Tenant Size Break Down |
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116 | (1) |
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Breaking Down the Types of Businesses That Are Growing |
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117 | (1) |
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Central Cities Versus Suburbs |
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117 | (1) |
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Further Refining Office Market Analysis |
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118 | (1) |
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Office Demand and Local Taxes |
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119 | (1) |
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What Drives the Supply of Office Space? |
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120 | (2) |
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National Office Market Trends |
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122 | (1) |
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Introduction to Industrial Property |
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123 | (8) |
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124 | (2) |
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What Kind of Industrial Property Will We Need in the Future? |
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126 | (2) |
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The Demand for Warehouse Space |
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128 | (1) |
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Agglomeration Economies Influence Warehouse Demand |
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129 | (1) |
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Obsolescence and Technology Influences on Warehouse Life |
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129 | (1) |
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Types of Specialized Warehouses |
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129 | (2) |
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The Supply of Industrial Property |
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131 | (2) |
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How Do We Measure Profitability in Property Development? |
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132 | (1) |
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133 | (1) |
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133 | (1) |
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133 | (1) |
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Discussion Questions and Suggested Exercises |
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134 | (1) |
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135 | (2) |
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3 Legal and Regulatory Environment |
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137 | (95) |
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Real Estate Property Rights, Fixtures, and Ownership |
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138 | (29) |
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138 | (1) |
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Real Property Includes More Than Just Land |
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139 | (8) |
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139 | (1) |
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139 | (2) |
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141 | (2) |
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Subsurface Rights: Mineral Rights |
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143 | (1) |
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Air Rights: Protecting Your Piece of the Sky |
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144 | (1) |
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145 | (1) |
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Legal Descriptions Necessary for Transfer of Real Property |
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145 | (1) |
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145 | (1) |
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Rectangular Survey System |
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146 | (1) |
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147 | (1) |
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Geographic Positioning Systems and Future Legal Descriptions |
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147 | (2) |
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Level of Real Estate Interests: How Much Do You Own? |
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149 | (1) |
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149 | (1) |
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Co-Ownership and Business Ownership |
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150 | (11) |
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Simple Co-Ownership Arrangements Between Partners or Husbands and Wives |
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151 | (1) |
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Multi-Unit Ownership: Sharing Space with Others |
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152 | (3) |
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Business and Real Property: Combining Investors |
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155 | (6) |
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Other Interests in Real Property: Non-Possessory Interests in Land |
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161 | (3) |
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162 | (1) |
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163 | (1) |
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163 | (1) |
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163 | (1) |
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163 | (1) |
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Covenants and Deed Restrictions |
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164 | (1) |
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164 | (1) |
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164 | (1) |
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Discussion Questions and Suggested Exercises |
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165 | (2) |
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Contracts, Transferring Real Property Interests, and Leases |
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167 | (18) |
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167 | (1) |
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A Grantor with Capacity and a Deed that Must be in Writing |
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167 | (2) |
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169 | (1) |
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Public Records and Deeds: The Issues of Recording |
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169 | (1) |
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Title Search, Insurance, and Good Title |
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170 | (1) |
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How is Real Estate Title Transferred? |
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171 | (1) |
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The Basics of Contract Formation: The Common Law Requirements |
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171 | (4) |
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171 | (2) |
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173 | (1) |
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173 | (1) |
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The Requirement of Writing |
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173 | (1) |
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When a Contract Is Not Really a Contract |
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174 | (1) |
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Transferring Title to Real Estate by Inheritance |
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175 | (1) |
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Transferring Title By Adverse Possession: Where Possession Really Is 9/10ths of the Law |
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176 | (1) |
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Transferring Title to the Public: Eminent Domain |
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177 | (1) |
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Foreclosure and Transfer of Title |
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177 | (1) |
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Summary on the Transfer of Title |
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178 | (1) |
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Temporary Transfer of Possession Rights: Leases |
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178 | (1) |
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Leases: The Non-Freehold Estates in Land |
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179 | (1) |
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180 | (1) |
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Legal Aspects and Common Forms of Commercial Leases |
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180 | (1) |
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180 | (1) |
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How Rents May Be Increased or Escalated |
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181 | (1) |
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181 | (1) |
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182 | (1) |
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Lease with Purchase Options |
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182 | (1) |
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182 | (1) |
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183 | (1) |
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183 | (1) |
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Discussion Questions and Suggested Exercises |
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184 | (1) |
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Negotiation, Ethics, and Risk Management in the Contracting Process |
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185 | (27) |
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185 | (1) |
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General Negotiation Philosophy: The Extreme Views |
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186 | (1) |
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The Competitive Adversarial Approach: I Win if You Lose (Win-Lose), Military Negotiation, or Power Negotiation |
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186 | (1) |
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Principled Negotiation: The Ally Approach, Mutual Gains, or Cooperative Method---or Simply Win-Win |
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187 | (1) |
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Factors Influencing the Degree of Cooperation Versus Competition in Negotiation Styles |
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187 | (2) |
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Ethics Are Not Universal and Do Influence Style |
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188 | (1) |
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Principled Negotiation Tends to Be the Most Efficient |
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189 | (1) |
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Successful Negotiation Traits Common Among All Effective Negotiators |
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189 | (2) |
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Self-Confidence Is Critical |
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189 | (1) |
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190 | (1) |
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Information and Knowledge Are Power |
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190 | (1) |
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Stay Objective and Know the True Interests |
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191 | (1) |
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Know Your Options at All Times |
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191 | (1) |
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Consider Everything Negotiable |
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191 | (1) |
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The Process of Negotiation |
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191 | (2) |
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The Role of Communication Skills in Negotiation |
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193 | (1) |
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The Importance of Voice Tone |
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193 | (1) |
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Framing Is the Art of Tactful Communication |
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194 | (1) |
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The Importance of Non-Verbal Communication |
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194 | (1) |
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Aligning Principal and Agent Incentives Prior to Negotiation |
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194 | (4) |
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Ethics, Agency, and Appropriate Behavior In the Contracting Process |
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195 | (1) |
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Is Ethics the Same as Doing the Right Thing? |
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196 | (1) |
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Typical Agency Violations and Acts of Dishonesty in Real Estate |
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196 | (1) |
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Typical Unethical Acts by Buyers and Sellers in the Real Estate Market |
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197 | (1) |
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Contract Negotiation in a Risk Management Framework |
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198 | (5) |
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Summary of Risk Management |
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203 | (1) |
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204 | (1) |
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204 | (1) |
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Discussion Questions and Suggested Exercises |
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205 | (1) |
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205 | (2) |
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207 | (5) |
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Land-Use Controls and Property Taxes |
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212 | (20) |
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212 | (1) |
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Balancing Land-Use Controls Versus Market Freedom |
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213 | (1) |
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Authority and Purposes of Regulating Real Estate Use |
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214 | (1) |
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214 | (6) |
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214 | (4) |
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218 | (2) |
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State and Local Land-Use Incentives |
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220 | (4) |
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221 | (2) |
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Public Assistance to Private Development |
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223 | (1) |
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State- and Local-Level Income Tax Subsidies for Private Development |
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223 | (1) |
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Federal Land-Use Controls |
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224 | (4) |
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Environmental Land-Use Regulation |
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224 | (1) |
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225 | (3) |
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Sustainable Development and Green Design |
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228 | (1) |
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228 | (1) |
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229 | (1) |
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Discussion Questions and Suggested Exercises |
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229 | (3) |
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4 Real Estate Financial and Investment Analysis |
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232 | (223) |
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Introduction to Investment Concepts |
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234 | (17) |
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234 | (1) |
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Sources of Real Estate Returns |
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235 | (1) |
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236 | (1) |
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Brief Introduction to Cash Flow Analysis |
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236 | (1) |
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Direct and Indirect Real Estate Investment |
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237 | (3) |
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Current Yield and Total Return Terminology: Real Estate, Stocks, Bonds |
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237 | (3) |
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Levered Versus Unlevered Investments |
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240 | (1) |
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Getting Rich in Real Estate: Return on Labor Versus Return on Investment |
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240 | (2) |
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Sources of Real Estate Risk |
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242 | (1) |
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Risk Analysis at the Property Level |
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243 | (4) |
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245 | (1) |
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246 | (1) |
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246 | (1) |
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Is Real Estate an Asset Class? |
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247 | (1) |
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Market Efficiency and Real Estate |
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248 | (1) |
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Creative Advantages of Partnerships and Investment Structuring |
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248 | (1) |
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249 | (1) |
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249 | (1) |
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Discussion Questions and Suggested Exercises |
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249 | (2) |
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Value Theory, Highest and Best Use Analysis, and the Cost Approach |
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251 | (19) |
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251 | (1) |
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Price and Value Formation |
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252 | (2) |
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Traditional Methods of Valuation |
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254 | (1) |
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Newer Methods of Valuation for Residential Property: Hedonic Models |
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254 | (1) |
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Site Value Based on the Highest and Best Use |
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255 | (2) |
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Definition of Highest and Best Use (H&B Use) |
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256 | (1) |
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The Impact of Option Value |
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257 | (1) |
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257 | (2) |
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The Theory of Value Based on the Cost Approach |
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259 | (6) |
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Steps in the Cost Approach to Value |
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260 | (5) |
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Further Discussion on Cost New: Reproduction and Replacement |
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265 | (2) |
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Summary of the Cost Approach |
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267 | (1) |
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267 | (1) |
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Discussion Questions and Suggested Exercises |
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267 | (2) |
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269 | (1) |
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The Market Approach to Value |
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270 | (19) |
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270 | (1) |
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Traditional Methods of Defining the Submarket |
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271 | (1) |
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Newer Methods of Defining Submarkets for Residential Property: Seeking Homogeneity |
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272 | (1) |
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273 | (8) |
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274 | (7) |
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Reconciliation of Market Value Evidence |
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281 | (1) |
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Confidence in the Conclusion of Market Value |
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282 | (1) |
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Multiple Regression and Mass Appraisal for Residential Single Family Property |
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282 | (3) |
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ValueYourHome Automated Valuation Model (AVM) |
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283 | (2) |
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285 | (2) |
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287 | (1) |
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Discussion Questions and Suggested Exercises |
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287 | (1) |
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287 | (2) |
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289 | (21) |
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289 | (1) |
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289 | (4) |
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Steps in Developing the Simplified Operating Statement or Pro Forma |
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290 | (3) |
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Five Important Notes Necessary to Understand Industry Practices |
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293 | (2) |
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Note 1: An Alternative Calculation of Taxable Income |
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293 | (1) |
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Note 2: Real Estate Investment Trust (REIT) Terminology |
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293 | (1) |
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Note 3: The Treatment of Management Expense When Self-Managed |
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293 | (1) |
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Note 4: Tenant Improvement Expenditures, Leasing Commissions |
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294 | (1) |
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Note 5: Reserves for Replacement, Reserve Games, and Capital Improvements |
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294 | (1) |
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295 | (1) |
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Important Financial Ratios |
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295 | (5) |
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Leverage and Operating Ratios |
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296 | (1) |
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Single-Period Profitability Measures |
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297 | (1) |
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Multiple-Period Return Measures |
|
|
298 | (2) |
|
A One-Year Example of Cash Flow Calculations |
|
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300 | (1) |
|
Financial Ratio Calculations |
|
|
301 | (1) |
|
A 10-Year Pro Forma with an IRR to Equity Calculation |
|
|
301 | (2) |
|
Lease Analysis and Cash Flow Projection |
|
|
303 | (1) |
|
The Impact of Cycles, Marketing, and Management on Cash Flows |
|
|
304 | (2) |
|
Spreadsheets and Software to Estimate the Pro Forma and Key Ratios |
|
|
306 | (1) |
|
Tax Deferral Trends: Using 1031 Exchanges |
|
|
307 | (1) |
|
|
|
307 | (1) |
|
|
|
308 | (1) |
|
Discussion Questions and Suggested Exercises |
|
|
308 | (2) |
|
Valuation Analysis: Income Discounting, Cap Rates, and DCF Analysis |
|
|
310 | (21) |
|
|
|
310 | (1) |
|
Quick and Easy Property Valuation Using Multipliers |
|
|
310 | (1) |
|
The Traditional Income Approach to Value |
|
|
311 | (2) |
|
Thinking About the Cap Rate and Price/Earnings Multipliers |
|
|
313 | (1) |
|
Thinking About the Cap Rates and Return of Capital |
|
|
313 | (1) |
|
Thinking About Cap Rates and the Cost of Capital |
|
|
314 | (1) |
|
|
|
315 | (1) |
|
Property Age and Cap Rates |
|
|
315 | (2) |
|
Discounted Cash Flow (DCF) Analysis as a Valuation Technique |
|
|
317 | (7) |
|
An Example of DCF Analysis: With and Without Debt |
|
|
319 | (1) |
|
Discounted Valuation with Mortgage Debt |
|
|
320 | (1) |
|
Typical Mistakes in DCF Application to Commercial Property |
|
|
321 | (2) |
|
Is DCF Useful in the Real World? |
|
|
323 | (1) |
|
Capital Budgeting and the Net Present Value Investment Decision Rule |
|
|
324 | (3) |
|
NPV Rule Corollary: Zero NPV Deals Are Okay |
|
|
325 | (1) |
|
The Hurdle Rate Version of the Decision Rule |
|
|
326 | (1) |
|
|
|
327 | (1) |
|
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|
327 | (1) |
|
Discussion Questions and Suggested Exercises |
|
|
327 | (2) |
|
Answers to Selected Problems |
|
|
329 | (1) |
|
|
|
330 | (1) |
|
Risk Analysis, Leverage, and Due Diligence |
|
|
331 | (24) |
|
|
|
331 | (1) |
|
Causes of Risk Versus Statistical Measures |
|
|
332 | (2) |
|
Understanding the Sources of Returns as a Way to Understand the Causes of Risk |
|
|
334 | (2) |
|
|
|
335 | (1) |
|
Changing the Required Rate of Return or Discount Rate |
|
|
336 | (1) |
|
|
|
336 | (1) |
|
Sensitivity Analysis and Simulation Analysis as Ways to Understand Risks |
|
|
337 | (1) |
|
Due Diligence: A Chance to Investigate the Causes of Risk |
|
|
338 | (3) |
|
|
|
339 | (1) |
|
|
|
339 | (1) |
|
|
|
340 | (1) |
|
Contractual Due Diligence |
|
|
340 | (1) |
|
|
|
341 | (1) |
|
|
|
341 | (6) |
|
Basic Definitions and Mechanics of Leverage |
|
|
342 | (1) |
|
The Effect of Leverage on the Risk and Return to Equity |
|
|
343 | (2) |
|
The Effect of Leverage on Risk |
|
|
345 | (2) |
|
Risk and Return: Putting the Two Effects Together |
|
|
347 | (1) |
|
Positive and Negative Leverage |
|
|
347 | (2) |
|
Below-Market Financing, Risk, and Value |
|
|
349 | (2) |
|
Beware of No Money Down Deals! |
|
|
349 | (2) |
|
100% Leverage as a Way to Control Real Estate Without Owning It |
|
|
351 | (1) |
|
Creative Partnering and Return Allocation Using Mortgages |
|
|
351 | (1) |
|
|
|
352 | (1) |
|
|
|
353 | (1) |
|
Discussion Questions and Suggested Exercises |
|
|
353 | (1) |
|
|
|
354 | (1) |
|
An Introduction to the Process of Real Estate Finance |
|
|
355 | (20) |
|
|
|
355 | (1) |
|
|
|
356 | (3) |
|
Mortgage Markets and the Role of Intermediaries |
|
|
359 | (2) |
|
|
|
361 | (1) |
|
Primary Sources of Mortgage Money by Type of Property |
|
|
361 | (1) |
|
|
|
361 | (1) |
|
Multifamily Mortgage Loans |
|
|
362 | (1) |
|
|
|
362 | (1) |
|
Primary Suppliers of Mortgage Funds by Institution |
|
|
362 | (3) |
|
|
|
362 | (1) |
|
|
|
363 | (1) |
|
Mortgage Bankers and Mortgage Companies |
|
|
363 | (1) |
|
|
|
364 | (1) |
|
|
|
364 | (1) |
|
|
|
364 | (1) |
|
Other Sources of Debt Capital for Real Estate |
|
|
365 | (1) |
|
The Impact of the Resolution Trust Corporation (RTC) |
|
|
365 | (1) |
|
The Impact of the Community Reinvestment Act |
|
|
365 | (1) |
|
Capital Market and Other Influences on Mortgage Interest Rates |
|
|
365 | (6) |
|
Yield Curves and the Relationship Between Security Maturity and the Level of Interest Rates |
|
|
366 | (1) |
|
The Real Risk-Free Rate of Interest and Expected Inflation Levels |
|
|
367 | (1) |
|
What is the Impact of Global Capital Markets on Mortgage Rates? |
|
|
368 | (1) |
|
The Impact of the Federal Reserve on Interest Rates |
|
|
369 | (1) |
|
Other Risk Premia Added on Mortgages |
|
|
369 | (2) |
|
Trends in Real Estate Finance |
|
|
371 | (2) |
|
Housing Is More Affordable |
|
|
372 | (1) |
|
|
|
373 | (1) |
|
|
|
373 | (1) |
|
Discussion Questions and Suggested Exercises |
|
|
374 | (1) |
|
Real Estate Finance Tools: Present Value and Mortgage Mathematics |
|
|
375 | (26) |
|
|
|
375 | (1) |
|
The Present or Future Value of a Single Sum |
|
|
376 | (1) |
|
Present Value and Future Values Over Multiple Periods of Time |
|
|
377 | (1) |
|
Simple versus Compound Interest |
|
|
378 | (1) |
|
Effective versus Simple Rates |
|
|
379 | (2) |
|
|
|
380 | (1) |
|
Present Value of an Annuity |
|
|
381 | (2) |
|
|
|
383 | (1) |
|
Calculating a Loan Balance |
|
|
384 | (1) |
|
Calculating the Principal and Interest Separation for a Mortgage |
|
|
385 | (1) |
|
Future Value of an Annuity |
|
|
386 | (1) |
|
How the Present Value Keys on a Business Calculator Work and Internal Rates of Return |
|
|
387 | (1) |
|
Calculating Yields or Borrowing Costs |
|
|
388 | (1) |
|
More Mortgage Calculations on a Financial Calculator |
|
|
389 | (1) |
|
|
|
389 | (3) |
|
Effective Yield Calculation |
|
|
390 | (1) |
|
The APR or Annual Percentage Rate Calculation |
|
|
390 | (1) |
|
Calculating the Number of Points Needed to Bring a Yield Up on a Mortgage or for Buydowns |
|
|
391 | (1) |
|
|
|
392 | (1) |
|
|
|
393 | (1) |
|
Choosing Between FRMs and ARMs |
|
|
394 | (1) |
|
|
|
394 | (1) |
|
Price-Level-Adjusted Mortgages or PLAMs using Real Interest Rates |
|
|
395 | (1) |
|
Supportable Mortgage Calculation Using Household Income |
|
|
395 | (1) |
|
Supportable Commercial Mortgage Calculation Using the Debt Coverage Ratio |
|
|
396 | (1) |
|
|
|
397 | (1) |
|
|
|
397 | (1) |
|
Discussion Questions and Suggested Exercises |
|
|
397 | (2) |
|
Answers to Selected Discussion Questions |
|
|
399 | (2) |
|
Residential Real Estate Finance: Mortgage Choices, Pricing, and Risks |
|
|
401 | (16) |
|
|
|
401 | (1) |
|
Some Residential Financing Terminology and Review |
|
|
402 | (1) |
|
|
|
402 | (1) |
|
|
|
403 | (1) |
|
|
|
403 | (1) |
|
|
|
403 | (2) |
|
|
|
403 | (1) |
|
The True Cost of Borrowing |
|
|
404 | (1) |
|
The Tax Benefits of Mortgage Interest Rate Deductions |
|
|
405 | (2) |
|
|
|
407 | (1) |
|
Residential Mortgage Loan Underwriting |
|
|
407 | (4) |
|
Assessing the Probability of Default |
|
|
408 | (3) |
|
|
|
411 | (1) |
|
The Underwriting Process Illustrated |
|
|
411 | (1) |
|
Future of Residential Finance |
|
|
412 | (2) |
|
|
|
414 | (1) |
|
|
|
415 | (1) |
|
Discussion Questions and Suggested Exercises |
|
|
415 | (1) |
|
|
|
416 | (1) |
|
Commercial Real Estate Finance |
|
|
417 | (18) |
|
|
|
417 | (2) |
|
Commercial Borrowers and Lenders |
|
|
419 | (1) |
|
The Process of Securing Commercial Property Financing |
|
|
420 | (5) |
|
Step 1: Complete the Financing Loan Application Package |
|
|
420 | (3) |
|
Step 2: Package Submission and Solicitation of Quotes |
|
|
423 | (1) |
|
|
|
423 | (1) |
|
|
|
423 | (1) |
|
Step 5: Loan Committee Approval |
|
|
423 | (1) |
|
Step 6: Commitment Letter |
|
|
424 | (1) |
|
Step 7: Due Diligence and Closing Process |
|
|
424 | (1) |
|
Step 8: Loan Closing and Funding |
|
|
424 | (1) |
|
|
|
425 | (2) |
|
Loan-to-Value Ratio (LTVR) |
|
|
425 | (1) |
|
Debt Coverage Ratio (DCR) |
|
|
425 | (1) |
|
|
|
426 | (1) |
|
Evaluation of Net Operating Income |
|
|
426 | (1) |
|
|
|
427 | (1) |
|
New Directions: Commercial Mortgage-Backed Securities |
|
|
428 | (5) |
|
|
|
429 | (2) |
|
CMBS Advantages and Disadvantages for Borrowers and Lenders |
|
|
431 | (1) |
|
The Securitization Process for a CMBS Mortgage |
|
|
431 | (2) |
|
|
|
433 | (1) |
|
|
|
433 | (1) |
|
Discussion Questions and Suggested Exercises |
|
|
434 | (1) |
|
Institutional Investment and REITs |
|
|
435 | (20) |
|
|
|
435 | (1) |
|
Investing in Real Estate is Different Than Stocks and Bonds |
|
|
436 | (1) |
|
The Evolution of Real Estate Products for Institutional Investors |
|
|
437 | (1) |
|
Diversification, Liquidity, and Investing in the Best Deal at the Time |
|
|
438 | (1) |
|
Public and Private Asset Markets |
|
|
438 | (2) |
|
Modes of Investing in Real Estate |
|
|
440 | (1) |
|
|
|
440 | (1) |
|
Pension Real Estate Association (PREA) |
|
|
440 | (1) |
|
National Council of Real Estate Investment Fiduciaries (NCREIF) |
|
|
441 | (1) |
|
Association for Investment Management and Research (AIMR) |
|
|
441 | (1) |
|
National Association of Real Estate Investment Trusts (NAREIT) |
|
|
441 | (1) |
|
Real Estate Research Institute (RERI) |
|
|
441 | (1) |
|
More on REIT Growth, Regulation, Market Penetration, and Earnings Measurement |
|
|
441 | (5) |
|
Why Have REITs Grown So Dramatically Since 1992? |
|
|
442 | (2) |
|
|
|
444 | (1) |
|
|
|
445 | (1) |
|
How Do Institutional Investors View Risk in a Portfolio Context? |
|
|
446 | (1) |
|
Measures of Risk-Adjusted Returns |
|
|
447 | (1) |
|
Portfolio Theory and the Role of Real Estate Equity |
|
|
448 | (4) |
|
More on Modern Portfolio Theory |
|
|
449 | (2) |
|
Modern Portfolio Theory Illustrated |
|
|
451 | (1) |
|
|
|
452 | (1) |
|
|
|
453 | (1) |
|
Discussion Questions and Selected Exercises |
|
|
453 | (2) |
|
5 Real Estate Brokerage, Leasing, Development, and Trends |
|
|
455 | (80) |
|
|
|
456 | (25) |
|
|
|
456 | (1) |
|
Industry Scale, Terms, and Licensing |
|
|
456 | (1) |
|
Realtors®: A Trade Registered Name |
|
|
457 | (1) |
|
The MLS: Multiple Listing Service |
|
|
458 | (1) |
|
|
|
458 | (1) |
|
The Essence of the Residential Real Estate Brokerage Business |
|
|
458 | (19) |
|
|
|
459 | (5) |
|
|
|
464 | (11) |
|
|
|
475 | (1) |
|
What Does It Take to Succeed as a Residential Sales Agent? |
|
|
475 | (2) |
|
The Future of the U.S. Residential Brokerage Industry |
|
|
477 | (1) |
|
|
|
478 | (1) |
|
|
|
478 | (1) |
|
Discussion Questions and Suggested Exercises |
|
|
478 | (1) |
|
|
|
479 | (2) |
|
Commercial Brokerage and Leasing |
|
|
481 | (25) |
|
|
|
481 | (2) |
|
The Building Block of Investment Value Begins with the Tenant and Lease |
|
|
483 | (1) |
|
Types of Lease Analysis: Summary and Illustration |
|
|
484 | (2) |
|
Computing the Effective Rent of a Lease |
|
|
486 | (2) |
|
Effective Rent Calculation Procedure |
|
|
486 | (1) |
|
Numerical Example of Effective Rent Calculation |
|
|
487 | (1) |
|
A More In-Depth and Detailed Lease Comparison |
|
|
488 | (4) |
|
Important Submarket Analysis |
|
|
492 | (1) |
|
Building Analysis Via Peer Group Analysis |
|
|
493 | (1) |
|
Revisiting the Pro Forma and Cap Rates for a Specific Building Value Estimation |
|
|
494 | (7) |
|
What Else Might Go into the Analysis of Current Value? |
|
|
496 | (1) |
|
Recap of Calculating Before- and After-Tax Cash Flow |
|
|
496 | (2) |
|
Calculating Present Values and Financial Returns |
|
|
498 | (3) |
|
The Importance of Tax Law Trends to Investors and Commercial Real Estate Firms |
|
|
501 | (2) |
|
Commercial Leasing and Brokerage Fees |
|
|
503 | (1) |
|
Research Is Becoming More Valuable to Commercial Brokerage Firms |
|
|
504 | (1) |
|
|
|
504 | (1) |
|
|
|
505 | (1) |
|
Discussion Questions and Suggested Exercises |
|
|
505 | (1) |
|
Real Estate Development and Property Trends |
|
|
506 | (29) |
|
|
|
506 | (2) |
|
The Players in Development |
|
|
508 | (4) |
|
|
|
508 | (1) |
|
Designers and Physical Planners |
|
|
508 | (1) |
|
Environmental Consultants |
|
|
508 | (1) |
|
|
|
509 | (1) |
|
|
|
509 | (1) |
|
|
|
510 | (1) |
|
|
|
510 | (1) |
|
|
|
510 | (1) |
|
Property Managers and Facilities Managers |
|
|
511 | (1) |
|
|
|
511 | (1) |
|
|
|
511 | (1) |
|
A Chronological Perspective of Development Stages |
|
|
512 | (2) |
|
Conceptual Stage and Preliminary Analysis |
|
|
512 | (1) |
|
Resource Assembly and Further Planning |
|
|
512 | (1) |
|
Implementation and Contractual Period |
|
|
513 | (1) |
|
Absorption and Operational Period |
|
|
513 | (1) |
|
|
|
514 | (1) |
|
A Primer on Feasibility Analysis for a Site or an Idea |
|
|
514 | (3) |
|
Market and Competitive Analysis |
|
|
515 | (1) |
|
Political and Legal Analysis |
|
|
516 | (1) |
|
Physical and Design Analysis |
|
|
517 | (1) |
|
|
|
517 | (1) |
|
Project Costs for a New Development or Rehabilitation |
|
|
517 | (1) |
|
The Construction and Absorption Budget |
|
|
518 | (1) |
|
Financial Analysis Based on Operating Projections: The Pro Forma |
|
|
518 | (2) |
|
Front Door/Backdoor Techniques to Determine Financial Feasibility |
|
|
520 | (5) |
|
|
|
525 | (5) |
|
|
|
526 | (1) |
|
|
|
526 | (1) |
|
|
|
526 | (1) |
|
|
|
526 | (2) |
|
|
|
528 | (1) |
|
Retail Property Types and Trends |
|
|
528 | (1) |
|
|
|
529 | (1) |
|
|
|
530 | (1) |
|
|
|
530 | (1) |
|
|
|
530 | (1) |
|
Discussion Questions and Suggested Exercises |
|
|
531 | (4) |
|
|
|
535 | (6) |
|
|
|
535 | (1) |
|
|
|
536 | (1) |
|
3. Major Real Estate Directories |
|
|
536 | (1) |
|
4. Data Resources and Web Sites |
|
|
536 | (5) |
|
What Makes for a Good Web Site? |
|
|
539 | (2) |
| Glossary |
|
541 | (14) |
| Index |
|
555 | |
