Master of Science in Financial Services

One of the industry’s most pragmatic elite degrees.

MS620 - Real Estate

Time is money when it comes to real estate.

In this course you'll gain knowledge of a wide range of subjects.

The first subject is about real estate financing, including fixed rate, adjustable rate, hybrid, subprime, and home equity-based loans. This is followed by family housing as an investment, to rent or to own, tax considerations, appreciations,and investing in distressed properties. Then you'll learn about investment analysis and financing of income properties. This includes leases, rent determination, expense recoveries and other options revolving around commerical properties, financing alternativs, risk analysis and disposition.

Construction and land development projects follow in suit. These pose greater risk and here you'll learn how to reduce that risk while learning about advances and loan repayment. Lastly, joint venture structures by developers and investors. Mortgage-backed securities, collateralized debt obligations (CDOs) are detailed, as are domestic and foreign real estate investment trusts.

How should real estate be considered in a portfolio of traditional stocks and bonds? Take this course to find out.

The course material covers the following:

Legal Concepts

  • Property Rights and Estates
  • Interests, Encumbrances and Easements
  • Assurance of Title and Recording Acts
  • Methods of Title Assurance
  • Limitations on Property Rights

Notes and Mortgages

  • The Mortgage Instrument
  • Assumption of Mortgage
  • Acquiring Title Subject to"
  • Land and Contracts
  • Foreclosure and Alternatives
  • Default and Bankruptcy

The Interest Factor

  • Compound or Future Value
  • Expanding the Use of Financial Calculators
  • Present Value
  • Compound or Future Value of an Annuity
  • Accumulation of a Future Sum
  • Determining Yield
  • Determining Internal Rates of Return

Fixed Rate Loans

  • Determinants of Mortgage Interest Rate
  • Development of Loan Payment Patterns
  • Constant Payment
  • Amortization Loans
  • Loan Patterns

Adjustable Mortgages

  • ARMs and Lender Consideration
  • Price Level Adjusted Mortgage (PLAM)

Financial Analysis

  • Incremental Borrowing Cost
  • Loan Refinancing
  • Early Loan Repayment
  • Market Value of a Loan
  • Effective Cost of Two or More Loans
  • Below-Market Financing Prices
  • Cash Equivalency and Loan Balance
  • Wraparound and Buydown Loans

Single Family Housing

  • Regional Economic Influences
  • Values and Supply
  • Tax Considerations
  • Investing in Distressed Properties

Income Properties

  • Property Types
  • Supply and Demand Analysis
  • The Business of Real Estate
  • Income-Producing Real Estate Market
  • Income Potential—Real Estate Assets
  • General Content of Leases
  • Developing Cash Flow Statements
  • Office Property Leases
  • Industrial and Warehouse Leases
  • Retail and Apartment Property Leases


  • Fundamentals and the Appraisal Process
  • Approaches to Valuation
  • Mortgage-Equity Capitalization
  • Reconciliation: Sales Comparison
  • Income Capitalization Approaches
  • Cap Rates and Market Conditions
  • Effects of Market Forces and Rates
  • Valuation of a Leased Fee Estate
  • Land Values and the Cost Approach

Analysis and Taxation

  • Motivation of Investing
  • Market Characteristics
  • Investment Analysis and Strategies
  • Projecting Cash Flows
  • Debt Financing
  • Taxable Income from Real Estatey
  • After-Tax Investment Analysis

Financing Alternatives

  • Break-Even Interest Rate
  • Underwriting Loans on Income Properties
  • Loan Terms and Mortgage Covenants
  • Alternatives to Fixed Rate Loans
  • Participation Loans
  • Sale-Leaseback of Land
  • Interest-Only Loans
  • Accrual Loans
  • Convertible Mortgages
  • Other Financing Alternatives

Risk Analysis

  • Lease Rollover Risk
  • Market Leasing Assumptions
  • Risk and Leverage


  • Disposition Decisions
  • IRR for Holding vs. Sale
  • Return to a New Investor
  • Renovation and Refinancing
  • Rehabilitation Tax Credits

Corporate Real Estate

  • Lease vs. Own
  • Real Estate in Corporate Restructuring
  • Sale-Leaseback and Refinancing
  • Determination of Futures Pricing
  • Investing for Diversification

Financing Development

  • Planning and Permitting Process
  • Development of Properties
  • Project Development Financing
  • Lender Requirements
  • Development
  • Feasibility, Profitability and Risk

Financing Land Development

  • Characterization of Development
  • Land Development Process
  • Lender Requirements
  • Development


  • Types of Trusts
  • Accounting and Financial Disclosure Issues Equity and Mortgage REITs

Joint Ventures

  • Joint Ventures
  • Initial Capital Contributions
  • Sharing Cash Flow from Operations
  • IRR to Each Venture Party
  • LPs in Private and Public Syndicates
  • Capital Accounts
  • Partnership Allocations
  • Substantial Economic Effect
  • Capital Accounts and Charge Backs
  • Regulation of Syndicates
  • Federal and State Securities Authorities

Pass-Through Securities

  • Evolution of Secondary Mortgage Market
  • GNMA and Fannie Mae
  • Operation of Secondary Mortgage Market
  • Mortgage-Backed Bonds
  • Mortgage Pass-Through Securities

Derivative Securities

  • Mortgage Pay Through Bonds
  • Collateralized Mortgage Obligations
  • Residential Mortgage-Related Securities
  • Closing Observations
  • Commercial Mortgage-Backed Securities

Portfolio Considerations

  • Data Sources for Measurements
  • Cumulative Investment Return Patterns
  • Computing Holding Period Returns
  • Risk, Return and Performance Measurement
  • Elements of Portfolio Theory
  • Real Estate Returns and Other Investments
  • The Potential for Diversification

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