Real Estate Investment
- 1.5 credits
- Prerequisite: MBA Core
Real estate represents a significant portion of the nation's wealth and is an important investment vehicle for individuals, partnerships and corporations. This module deals with the analysis of real estate from the perspective of appraisers, developers, lenders, corporate users and equity investors. Emphasis is placed on identifying factors that affect the risk and expected rate of return for real estate such as the structure of the leases, the type of financing, legal considerations and characteristics of the particular property. The effect that corporate real estate decisions have on the company's financial statements is also considered as well as the public ownership of real estate by Real Estate Investment Trusts (REITs). The course will integrate theory and practice through the use of spreadsheets and software designed for advanced income property analysis.
- Mortgage Concepts and Calculations
- Lease and Cash Flow Analysis
- Measures of Risk and Expected Return
- Financial Leverage and Debt Structure
- Ownership Forms & Tax Considerations
- Joint Ventures and Limited Partnerships
- Corporate Real Estate Decisions
- Real Estate Valuation
- Real Estate Investment Trusts
- Construction and Development Projects
Typical Readings and Text: Real Estate Finance and Investments by Brueggeman and Fisher (McGraw-Hill, 12th Edition) will be the primary text for this module. Additional readings will be assigned to supplement the text.
Grading will be based upon homework assignments, case studies, class participation and exams.
Kelley finance MBA students manage a live $400,000 portfolio through the Investment Management Academy.