COMM 405 - Real Estate Finance

This course is an introduction to the financing of real estate acquisitions and development. The focus will be on debt financing though the use of mortgages for residential and commercial properties. Topics will include the mathematics of mortgage design and pricing, regulatory and legal framework that distinguishes mortgages from other types of secured debt, and mortgage derivatives such as mortgage backed securities. We will however, also look at the structure of equity finance through partnership arrangements and other types of financing that rely on mortgage contracts such as reverse mortgages and home owner lines of credit (HELOCs). As financial instruments, mortgages will be presented in the class as a unique form of fixed income securities. This subject matter will help you for your own mortgage choices, either for your own home or an investment. The material is necessary for any future career in real estate and is helpful for a wide variety of careers in finance.

Prerequisite: COMM 298.