Real Estate Investment Analysis

Real Estate Development

Summer 2012

Frank Gallinelli, instructor

This course was intended to benefit those students with a somewhat limited background in finance by offering an “applied finance” approach to mastering key real estate investment concepts. Using several different property types as examples, we evaluated various scenarios of potential acquisition, cash flow, financing, resale, development and partnership.

In our analyses we looked at specific metrics to identify what appeared to be favorable about each investment, what was problematic and what might be missing from the scenario as presented. We looked for factors that might optimize each real estate investment transaction and for those that might cause it to fail. As necessary, we reconstructed each transaction and sought alternatives that could yield more favorable or more reasonable results.

The objective was for students to learn to recognize and understand key concepts and metrics through an inductive approach. An additional objective was for students to develop a sense of how one can “read” the financial work-up of a property like a story: to look behind the numbers to apprehend not only what they reveal but also what they might be warning us to dig deeper to uncover.