Learning Real Estate Finance
Intended for courses in real estate finance, this text is user-friendly and written in an interactive workbook style. It provides students with the working knowledge of real estate finance that is essential for the successful licensee.
- 30 Jun 2002
- Pearson Education (US)
- Upper Saddle River, United States
Table of contents
Real estate and the US economy - the importance of real estate activity in relation to the economy; real estate, financial institutions and capital markets - the flow of funds through financial institutions and capital markets; interest rates - mortgages, other loans and securities - how interest rates on various types of loans and securities are determined; time value of money - the mechanics of compounding and discounting; the standard fixed rate mortgage (FRM) - the mechanics of the standard fixed rate mortgage - payments, balance, interest yield; adjustable rate and other types of mortgages - description and mechanics of alternative mortgage instruments (AMIs); mortgage insurance - government and private - description of mortgage insurance plans (FHA, VA, PMI); federal regulation of real estate finance - description of regulation Z, ECOA, etcetera; federal regulation of housing - description of fair housing laws; federal subsidies and grant for housing - description of HUD programmes for subsidizing low income housing; secondary mortgage market - description of the agencies and securities in the secondary mortgage market; federal taxation of real estate - some residential but mostly commercial real estate and the effect of taxes on cash flows and valuation; construction lending - the mechanics of ADC lending, as well as sources of funds; sources of commercial real estate lending - description of the primary lenders; a primer on accounting - income statements and balance sheets - simple accounting rules as they apply to real estate lending; leverage and the returns to real estate investment - how borrowed funds affect the return to the investor in commercial real estate; federal taxes and after tax cash flows - comparing the cash flows of a real estate investment under various tax provisions; lease analysis and negotiation - looking at competing leases, choosing the best lease and negotiating a better deal; own versus lease analysis - should you buy the property or lease it?; sale-leasebacks - an analysis of the cash flows when an owner of a property sells it and leases it back from the new owner; tax deferred exchanges and installment sales - minimizing taxes through these two sales arrangements.