Real Estate Finance

Course Code

REFIN819

Program or Programs for which course is part

Master in Real Estate (MRE) Executive Master in Real Estate (E-MRE) Master in Real Estate and Finance (MRE(Fin)) Executive Master in Real Estate and Finance (E-MRE(Fin))

Level (I, H, or M)

M

Number of Credits

This course carries a weight of 20 credits of the Homburg Academy, which is equal to 10 ECTS (European Credit Transfer System credits).

Learning Time This course requires approximately 200 hours of learning time. This includes all taught and supervised classes and all private study and research.

Stage (I or II, where applicable)

Stage I

Is this Course Core, Specialist or Elective

Elective for MRE and E-MRE Specialist for MRE(Fin) and E-MRE(Fin)

Courses that are pre-requisite or co-requisite

None

Name of Course Convenor

Mr Roger Staiger

Position

Adjunct Professor

Email address

rstaiger@gwmail.gwu.edu

Brief Course Summary This course aims to provide students with an advanced knowledge and understanding, appropriate to the Master of Real Estate, of: 1. The theory and practice of finance for investment in commercial Real Estate 2. The design and pricing of different mortgage instruments, and how to compare different mortgage products; 3. Commercial mortgages and residential mortgages, and the differences between them; 4. The secondary mortgage market and the structure and valuation of mortgage-backed securities. Specific topics covered in the course include:

Financial Analysis of Real Estate

Debt Financing

Effects of Leverage

Valuation Process

Different Forms of Capital

Understanding of the Real Estate Market

Course Objectives The intended learning outcomes of this course are to enable students to:

1. Understand the theories, concepts, and approaches to Real Estate finance; 2. Understand the process of financing from market evaluation to the choice of finance

product; 3. Understand finance options and the implications of each; 4. Understand how the secondary markets effects retail products. 5. Use of financial tools and information technology to analyse Real Estate investments and

loans. These specific learning outcomes contribute to achieving the learning outcomes of the relevant programs by demonstrating knowledge of the following (mapped to the Program Specification): A. Advanced knowledge and understanding of: 12.A.4: The general theoretical and conceptual frameworks in the field of real estate appraisal and how these are applied in the analysis of specific issues, exercising critical judgement and reason in each case; 12.A.5: How to carry out an independent research project and write in a scholarly manner

demonstrating familiarity with academic conventions in the preparation of the student’s case study report. B. Intellectual skills: 12.B.1: Develop general research skills, especially bibliographic and computing skills in finding, selecting, and analysing materials for the independent project; 12.B.2: Learn to gather, organise and deploy evidence, data and information from a variety of secondary and some primary sources; 12.B.4: Learn to identify, investigate, analyse, formulate and advocate solutions to problems; 12.B.5: Develop problem solving skills, including the ability to identify and define problems, and to establish strategies for dealing with them including criteria for success, mapping optimum and alternative solutions, and exercising critical judgement to discriminate between the ranges of alternatives; 12.B.6: Synthesise relevant information and exercise critical judgement in the development of reasoned arguments; 12.B.7: Enable students to reflect upon and manage their own learning, and seek to make use of constructive feedback from staff and peers to enhance their performance and personal skills. C. Subject-Specific Skills 12.C.3: Be able to discriminate between forms of knowledge and be able to draw selectively and appropriately on them;

12.C.4: Develop good understanding of the ethical issues in the Real Estate industry, including issues of sustainability, and environmental responsibility; 12.C.7: Understand key concepts in the appraisal and valuation of Real Estate, including the impact on land and property prices of such things as regulation, transport, public policy, and socio-economic change;

D. Transferable skills: 12.D.1: Develop autonomy in learning, work independently demonstrating initiative and self organisation; 12.D.2:. Work co-operatively on group tasks, understand how groups function, collaborate with others and contribute effectively to the achievement of common goals;

12.D.3: Use communication and information technology for the retrieval and presentation of information, in the form of prose or numeracy as appropriate; 12.D.4: Develop communication skills, both orally and in writing. Communicate clear, succinct, analytical ideas; 12.D.5: Prepare and deliver oral presentations individually and as part of a group.

List of Lecture Topics TBA

Learning and Teaching Methods Achievement of learning outcomes: the learning outcomes for this course are achieved through student participation in lectures (compulsory), in their active participation in seminar diuscussion (compulsory), and in their fulfilment of the assessed elements (compulsory). This is a ten week course that is offered entirely online. In each week there is a lecture presentation for approximately one hour, plus an interactive seminar discussion for approximately one hour. Lecture presentations led by the course professor. The lectures are designed to introduce key theories, practices, and methods in real estate appraisal, and to guide students through an understanding of their rationale, their uses, and their limitations, so that students may both understand and reflect critically upon the techniques in real estate finance. The lectures contribute to the achievement of learning outcomes by guiding students through the main theories, concepts, and debates in the scholarly literature, as well as the contested concepts and methods. Seminar Discussions are led by students under guidance of the course professor. The seminar is the opportunity for students to gain clarification of the lecture material and the reading materials. Also, through these guided discussions, it is intended that students will gain a comprehensive understanding by linking lectures, independent reading and class discussion, enabling students to apply concepts, theories, and methods to the practice of real estate finance. Through dialogue, interaction, cooperation, and confrontation, students learn to formulate, structure, and defend their perspectives. Independent Study: students are expected to read the stipulated text for each lecture and seminar session, as well as to read more widely in recommended texts for this course. Additionally, students are expected to conduct independent research for their contribution to seminar discussions, and for their research project. Learning outcomes for independent study are achieved through students’ own reading, research and preparation, seminar presentations, and in their research project.

Indicative Reading List TBA

Method of Assessment (and how the chosen method of assessment is related to learning outcomes) TBA

Summary of Assessed Elements, and Percentage Weight of Each Element TBA