Course Level: Graduate

Topics in Real Estate (1.5-3)

Real Estate Financial Modeling

This course provides students with knowledge regarding fundamental and challenging modeling issues in the real estate industry. Students learn the key terminology of real estate and Real Estate Investment Trusts (REITs), how to model an office development and sale with a cash flow waterfall analysis and returns allocation schedules, as well as the acquisition and renovation of a hotel. The course includes effective presentation of model outputs and comprehensive alternative risk analyses from models including break-even analysis and scenario analysis. In addition, students develop their skills in a variety of modeling issues associated with setting-up inputs, working with flexible time periods, and incorporating alternative financing structures. Prerequisite: familiarity with Excel.