General Information
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Target Audience
Real estate assets account for about one-third of the value of all capital assets in the world. An understanding of real estate is important no matter what line of business a student plans to be in. This class is, therefore, designed to be useful across the MBA program.
Format
In order to emphasize the interaction of theory and practice, academic lectures are supplemented by a series of student presentations, case discussions, and guest lectures.
Course Mission
This course will consider the economic and financial issues that are of fundamental importance in the analysis of real estate investment. The objective is to combine the analytic framework of financial economics with the real-world features of real estate investment and financing markets. The course will:
- Help students understand residential housing price movements;
- Familiarize students with the key elements of the real estate investment decision process in both commercial and residential real estate markets; and
- Establish a meaningful framework within which students can identify real estate opportunities and manage the associated risks.
Course Scope
This class will provide an overview of real estate valuation, financing and investment, using finance and economics tools. Topics include real estate investment and development, mortgage and equity financing, real estate securitization and credit crunch, real estate brokerage, house price dynamics, homeownership decisions and government policies.
Evaluation and Grade Distribution
| Component | Due Date | Weight |
|---|---|---|
| Class Participation | All weeks | 15% |
| Case Assignment* | Week 3 & 6 | 15% |
| Individual Case Assignment | Week 7 | 10% |
| Paper/Presentation* | Week 8 or 9 | 20% |
| Final Exam | At the end of the course (check course page/schedule) | 40% |
Required Resources
The course will make use of a textbook, Real Estate Finance and Investments by Peter Linneman.