An Introduction to Real Estate Finance

An Introduction to Real Estate Finance

1st Edition - October 14, 2013

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  • Author: Edward Glickman
  • eBook ISBN: 9780123786272
  • Hardcover ISBN: 9780123786265

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Description

An Introduction to Real Estate Finance serves as the core of knowledge for a single-semester first course in real estate finance. Unlike other real estate finance textbooks, with their encyclopedic but often stale details, it combines a short traditional text with a living website. The book gives students and professors highly applied information, and its regularly updated online features makes it especially useful for this practitioner-oriented audience. It covers fundamental topics such as accounting and tax, mortgages, capital markets, REITs and more. It also addresses the 2008 financial crisis and its impact on the real estate profession. This text is a valuable companion for students of real estate finance as well as financial analysts, portfolio managers, investors and other professionals in the field.

Key Features

  • Offers a concise, efficient, "finance-centric" alternative to traditional real estate finance texts
  • Website gives readers the tools to find current information about their own areas of specialization—a unique approach not found in other real estate finance textbooks
  • Gives students and professors the material to examine every subject in broad and highly detailed terms

Readership

Primary:  upper-division undergraduates taking a single-semester first course in Real Estate Finance and graduate students in MBA programs. Secondary:  financial analysts and portfolio managers working for real estate investors, real estate securities investors, and members of mortgage banking firms.

Table of Contents

  • Dedication

    Preface

    Note for the Practitioner

    Note for the Student

    Note for the Instructor

    Acknowledgments

    Principles of Real Estate Finance

    Introduction

    Glossary

    Thought Questions

    Review Questions

    Chapter 1. The Real Estate Industry

    1.1 Types of Real Estate

    1.2 Interests in Real Property

    1.3 Forms of Property Ownership

    1.4 Real Estate Functions

    1.5 Types of Real Estate Companies

    1.6 Ownership of Real Estate Companies

    1.7 Other Real Estate Industry Participants

    Glossary

    Chapter 2. Market Analysis

    2.1 Impact of the Economy on the Real Estate Market

    2.2 Economic Influences on Specific Property Types

    2.3 Economic and Demographic Analysis

    2.4 Governmental and Political Factors

    2.5 Analysis of Local Supply and Demand

    2.6 Property-Specific Due Diligence

    Glossary

    Chapter 3. Accounting and Tax

    3.1 Accounting Standards

    3.2 Real Estate Income Statement

    3.3 Real Estate Balance Sheet

    3.4 Real Estate Cash Flow Statement

    3.5 Taxation

    3.6 Tax as a Transactional Consideration

    Glossary

    Chapter 4. Cash Flows and Modeling

    4.1 Fundamental Principles

    4.2 Modeling Development and Construction

    4.3 Cash versus Accrual Modeling

    4.4 Property-Type-Specific Issues

    4.5 Building a Spreadsheet

    4.6 Spreadsheet Analysis

    Glossary

    Chapter 5. Property Valuation

    5.1 Capitalized NOI Method

    5.2 Discounted Cash Flow (DCF) Method

    5.3 Comparable Sales

    5.4 Cost Approach

    5.5 Value of Asset versus Value of Equity

    5.6 Impact of In-Place Financing

    5.7 Appraisal Process

    Glossary

    Chapter 6. Capital Markets

    6.1 Why Invest in Real Estate?

    6.2 Types of Real Estate Interests

    6.3 Forms of Real Estate Investments

    6.4 Types of Real Estate Securities

    6.5 Real Estate Investors

    6.6 Capital Market Participants

    6.7 Market Statistics

    Glossary

    Chapter 7. Property Finance: Debt

    7.1 Types of Real Estate Loans

    7.2 Determining the Best Type and Source of Financing

    7.3 Loan Terms

    7.4 Determining Loan Amount

    7.5 Property Lifecycle Issues

    Glossary

    Chapter 8. Mortgage-Backed Securities

    8.1 The Development of Mortgage-Backed Securities

    8.2 Benefits to Lenders and Borrowers from Securitization

    8.3 Structuring Mortgage-Backed Securities

    8.4 CMBS

    8.5 RMBS

    Glossary

    Chapter 9. Property Finance: Equity

    9.1 Characteristics

    9.2 Forms of Equity Investment

    9.3 Structuring Issues

    9.4 Investors

    9.5 Strategic Utilization of Equity by the Entrepreneur

    Glossary

    Chapter 10. Capital Structure

    10.1 The Capital Stack

    10.2 Use of Debt to Enhance Equity Yields

    10.3 Impact of Leverage on Risk

    10.4 Hybrid Financing Forms

    10.5 Impact of Credit Markets on Property Valuation

    10.6 Impact of Debt Terms on Optimum Capital Structure

    10.7 Deconstructing a Debt Quote

    Glossary

    Chapter 11. Development Finance

    11.1 Development Process

    11.2 Key Participants

    11.3 Financing Stages

    11.4 Government Finance

    11.5 Development Risks

    11.6 Real Options

    Glossary

    Chapter 12. Housing Finance

    12.1 Housing Finance

    12.2 The Economic Impact of the U.S. Housing Market

    12.3 History

    12.4 Single-Family Home Financing

    12.5 Multifamily

    12.6 Housing Development

    12.7 Impact of Housing Development on Local Infrastructure

    Glossary

    Chapter 13. REITs and Real Estate Corporate Finance

    13.1 What is a REIT?

    13.2 REIT Qualification Tests

    13.3 Benefits to Investors

    13.4 Capital Requirements

    13.5 The REIT Operating Partnership

    13.6 REIT Financial Statements

    13.7 Common REIT Financial Metrics

    13.8 Current REIT Market Statistics

    13.9 The Non-REIT Real Estate Company

    13.10 Real Estate Company Operations

    13.11 History

    Glossary

    Chapter 14. Corporate Real Estate

    14.1 Function

    14.2 Goals

    14.3 Strategic Real Estate Financing for Corporations

    14.4 Financing Structures

    14.5 Alternative Capital Sources for Corporate Real Estate

    Glossary

    Chapter 15. International Real Estate

    15.1 Overview

    15.2 Rewards

    15.3 Risks

    15.4 Investment Structure

    15.5 Participants

    Glossary

    Index

    Answers

    Chapter 1

    Chapter 2

    Chapter 3

    Chapter 4

    Chapter 5

    Chapter 6

    Chapter 7

    Chapter 8

    Chapter 9

    Chapter 10

    Chapter 11

    Chapter 12

    Chapter 13

    Chapter 14

    Chapter 15

Product details

  • No. of pages: 480
  • Language: English
  • Copyright: © Academic Press 2013
  • Published: October 14, 2013
  • Imprint: Academic Press
  • eBook ISBN: 9780123786272
  • Hardcover ISBN: 9780123786265

About the Author

Edward Glickman

Edward Glickman is the Executive Director of the Center for Real Estate Finance Research and Clinical Professor of Finance at New York University's Stern School of Business. He has more than 30 years' experience in the real estate and financial services industry.

Affiliations and Expertise

New York University, NY, USA

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