CART

(0) items

Real Estate Finance & Investments + Excel templates CD-ROM,9780072977363
This item qualifies for
FREE SHIPPING!

FREE SHIPPING OVER $59!

Your order must be $59 or more, you must select US Postal Service Shipping as your shipping preference, and the "Group my items into as few shipments as possible" option when you place your order.

Bulk sales, PO's, Marketplace Items, eBooks, Apparel, and DVDs not included.

Real Estate Finance & Investments + Excel templates CD-ROM

by
Edition:
12th
ISBN13:

9780072977363

ISBN10:
0072977361
Format:
Hardcover
Pub. Date:
3/3/2004
Publisher(s):
McGraw-Hill/Irwin
List Price: $145.53

Buy New Textbook

Usually Ships in 3-4 Business Days
N9780072977363
$141.89

Rent Textbook

We're Sorry
Sold Out

Used Textbook

We're Sorry
Sold Out

eTextbook

We're Sorry
Not Available

More New and Used
from Private Sellers
Starting at $18.18
See Prices

Questions About This Book?

What version or edition is this?
This is the 12th edition with a publication date of 3/3/2004.
What is included with this book?
  • The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any CDs, lab manuals, study guides, etc.

Related Products


  • Real Estate Finance & Investments
    Real Estate Finance & Investments
  • Real Estate Finance and Investments
    Real Estate Finance and Investments
  • Real Estate Finance and Investments with CD and Powerweb
    Real Estate Finance and Investments with CD and Powerweb




Table of Contents

PART ONE INTRODUCTION
An Introduction to Real Estate Investments: Legal Concepts
1(12)
Property Rights and Estates
2(4)
Definition of Estate
4(1)
Classification of Estates
4(1)
Examples of Freehold Estates
4(1)
Estates Not Yet in Possession (Future Estates)
5(1)
Leasehold Estates
5(1)
Interests and Easements
6(1)
Assurance of Title
7(1)
The Meaning of Title
7(1)
Deeds
7(1)
Methods of Title Assurance
8(2)
Abstract and Opinion Method
9(1)
The Title Insurance Method
9(1)
Recording Acts
10(1)
Limitations on Property Rights
11(2)
Financing: Notes and Mortgages
13(25)
Notes
13(1)
The Mortgage Instrument
14(5)
Definition of a Mortgage
15(1)
Relationship of Note to a Mortgage
15(1)
Interests That Can Be Mortgaged
15(1)
Minimum Mortgage Requirements
15(2)
Important Mortgage Clauses
17(2)
Assumption of Mortgage
19(1)
Acquiring Title ``Subject to'' a Mortgage
19(2)
Property Covered by a Mortgage
19(1)
Junior Mortgages
20(1)
Recording of Mortgages
20(1)
Other Financing Sources
21(1)
Seller Financing
21(1)
Land Contracts
21(1)
Default
22(1)
What Constitutes Default
22(1)
Alternatives to Foreclosure: Workouts
23(4)
Restructuring the Mortgage Loan
23(2)
Transfer of Mortgage to a New Owner
25(1)
Voluntary Conveyance
26(1)
Friendly Foreclosure
26(1)
Prepackaged Bankruptcy
26(1)
Foreclosure
27(6)
Judicial Foreclosure
27(1)
Redemption
27(1)
Sales of Property
28(3)
Effect of Foreclosure on Junior Lienors
31(1)
Deficiency Judgment
31(1)
Taxes in Default
32(1)
Bankruptcy
33(5)
Liquidation
33(1)
Chapter 11
33(1)
Chapter 13
33(5)
The Interest Factor in Financing
38(32)
Compound Interest
38(1)
Compound or Future Value
39(6)
Use of Compound Interest Tables
42(3)
Use of Financial Calculators
45(2)
Present Value
47(4)
A Graphic Illustration of Present Value
47(2)
Using Calculators for Finding Present Values
49(2)
Compound or Future Value of an Annuity
51(4)
Use of Compound Interest Factors for Annuities
53(2)
Present Value of an Annuity
55(4)
Use of the Present Value of an Annuity Factors
56(3)
Accumulation of a Future Sum
59(1)
Investments with Single Receipts
60(1)
Determining Yields or Internal Rates of Return on Investments
60(10)
Yields on Investment Annuities
63(2)
Effective Annual Yields: Extensions
65(1)
Solving for Annual Yields with Partial Periods: An Extension
66(4)
PART TWO FINANCING RESIDENTIAL PROPERTIES
Fixed Rate Mortgage Loans
70(40)
Determinants of Mortgage Interest Rates: A Brief Overview
70(4)
The Real Rate of Interest: Underlying Considerations
71(1)
Interest Rates and Inflation Expectations
71(1)
Interest Rates and Risk
72(1)
A Summary of Factors Important to Mortgage Pricing
73(1)
Development of Mortgage Payment Patterns
74(5)
Early Mortgage Lending Patterns
74(1)
The Constant Amortization Mortgage Loan (CAM)
75(1)
Fully Amortizing Constant Payment Mortgage Loans (CPM)
76(3)
Constant Payment and Constant Amortization Loans: A Comparison
79(12)
Determining Loan Balances
82(1)
Loan Closing Costs and Effective Borrowing Costs: Fully Amortized Loans
83(3)
Truth-in-Lending Requirements and the Annual Percentage Rate
86(1)
Loan Fees and Early Repayment: Fully Amortized Loans
86(5)
Charging Fees to Achieve Yields, or Pricing CPMs
91(1)
Other Loan Patterns
91(3)
Partially Amortizing Constant Payment Loans
92(1)
Zero Amortization or ``Interest Only'' Loans
92(1)
Increasing Loan Balances, or Negative Amortization
93(1)
Amortization Schedules and Callable Loans
93(1)
Inflation and Mortgage Pricing Problems
94(13)
Effects on Lenders and Borrowers
94(3)
The Graduated Payment Mortgage (GPM)
97(5)
Reverse Annuity Mortgages (RAMs)
102(5)
Appendix Graduated Payment Mortgages---Extensions
107(3)
Adjustable Rate and Variable Payment Mortgages
110(30)
ARMs and Lender Considerations
111(3)
The Price Level Adjusted Mortgage (PLAM)
114(20)
PLAM: Payment Mechanics
115(2)
ARMs: An Overview
117(1)
ARMs Illustrated
118(2)
Problems Lenders and Borrowers Face with ARMs
120(1)
Risk Premiums, Interest Rate Risk, and Default Risk on ARMs
121(2)
Expected Yield Relationships and Interest Rate Risk
123(3)
ARM Payment Mechanics
126(6)
Expected Yields on ARMs: A Comparison
132(2)
Shared Appreciation Mortgages
134(6)
Residential Financial Analysis
140(32)
Incremental Borrowing Cost
140(8)
Early Repayment
142(1)
Origination Fees
143(1)
Incremental Borrowing Cost versus a Second Mortgage
144(1)
Relationship between the Incremental Cost and the Loan-to-Value Ratio
144(3)
Differences in Maturities
147(1)
Loan Refinancing
148(4)
Early Repayment: Loan Refinancing
149(1)
Effective Cost of Refinancing
150(1)
Borrowing the Refinancing Costs
151(1)
Early Loan Repayment: Lender Inducements
152(1)
Market Value of a Loan
153(2)
Effective Cost of Two or More Loans
155(3)
Second Mortgages and Shorter Maturities
156(2)
Effect of Below Market Financing on House Prices
158(1)
Assuming a Lower Loan Balance
159(1)
Cash Equivalency
159(1)
Cash Equivalency: Smaller Loan Balance
160(1)
Cash Equivalency: Concluding Comments
161(1)
Wraparound Loans
162(2)
Buydown Loans
164(4)
Appendix After-Tax Effective Interest Rate
168(4)
Single Family Housing: Pricing, Investment, and Tax Considerations
172(27)
Overview
172(14)
Growth in House Prices
172(2)
Demographics
174(3)
Income and Employment
177(1)
Renting versus Owning
177(9)
Supply Overview
186(13)
The Influences of Neighborhoods/Municipalities
186(1)
Capitalization Effects: Price Premiums
187(1)
Pricing Property: Appraisals
188(11)
Underwriting and Financing Residential Properties
199(29)
Underwriting Default Risk
199(1)
Classification of Mortgage Loans
200(3)
Conventional Mortgage Loans
200(1)
Insured Conventional Mortgage Loans
201(1)
FHA Insured Mortgage Loans
202(1)
VA Guaranteed Mortgage Loans
202(1)
The Underwriting Process
203(4)
Borrower Income
204(1)
Verification of Borrower Assets
205(1)
Assessment of Credit History
206(1)
Estimated Housing Expense
206(1)
Other Obligations
206(1)
Compensating Factors
206(1)
The Underwriting Process Illustrated
207(7)
Underwriting Standards---Conventional and Insured Conventional Mortgages
207(2)
Underwriting Standards---FHA Insured Mortgages
209(3)
Underwriting Standards---VA Guaranteed Mortgages
212(1)
Underwriting and Loan Amounts---A Summary
212(2)
The Closing Process
214(5)
Fees and Expenses
214(1)
Prorations, Escrow Costs, and Payments to Third Parties
215(2)
Statutory Costs
217(1)
Requirements under the Real Estate Settlement and Procedures Act (RESPA)
217(2)
Settlement Costs Illustrated
219(9)
Federal Truth-in-Lending (FTL) Requirements
219(2)
Truth-in-Lending Sample Disclosure
221(1)
Establishing the APR under Federal Truth-in-Lending Requirements
221(2)
ARMs and Truth-in-Lending Disclosure
223(5)
PART THREE FINANCING INCOME PROPERTIES (DEBT AND EQUITY)
Introduction to Income-Producing Properties: Leases and the Market for Space
228(27)
Property Types
228(2)
Regional Economic Influences on Property Values
230(4)
Analogy with the Law of Comparative Advantage
230(2)
Economic Base Analysis---Location Quotients
232(2)
Supply and Demand Analysis
234(6)
Local Market Studies of Supply and Demand
237(1)
Location and User-Tenants
238(2)
The Business of Real Estate
240(1)
The ``Market'' for Income-Producing Real Estate
241(1)
Leases
242(9)
General Lease Terms for Specific Property Types
242(1)
Financial Contents of Leases
243(4)
Effective Rent
247(4)
Income Potential---Real Estate Assets
251(4)
Vacancy
251(4)
Valuation of Income Properties: Appraisal and the Market for Capital
255(37)
Introduction
255(1)
Valuation Fundamentals
255(1)
Appraisal Process and Approaches to Valuation
256(1)
Sales Comparison Approach
257(2)
Income Approach
259(10)
Capitalization Rate
261(2)
Capitalization Rate---A Note of Caution
263(1)
Discounted Present Value Techniques
263(1)
Selection of a Discount Rate (r)
264(2)
Using Approximations to Estimate Reversion Values
266(3)
Land Values: Highest and Best Use Analysis
269(2)
Volatility in Land Prices
270(1)
``Highest and Best Use'' Analysis
270(1)
Mortgage-Equity Capitalization
271(2)
Reconciliation: Sales Comparison and Income Capitalization Approaches
273(1)
Exploring the Relationships between Changing Market Conditions, Cap Rates, and Property Values
273(4)
A Closing Note on Cap Rates and Market Conditions
277(1)
A Word of Caution---Simultaneous Effects of Real Estate Market Forces and Interest Rates on Property Values
278(1)
Valuation of a Leased Fee Estate
278(1)
Cost Approach
279(3)
Valuation Case Study---Oakwood Apartments
282(10)
ARGUS Solution
286(6)
Investment Analysis and Taxation of Income Properties
292(28)
Motivation for Investing
292(1)
Real Estate Market Characteristics and Investment Strategies
293(2)
``The Real Estate Cycle''
293(2)
Investment Strategies
295(1)
Marketing Investments: Projecting Cash Flows
295(1)
Office Building Example
295(8)
Base Rent
298(1)
CPI Adjustment
298(1)
Expense Stops
299(2)
Net Operating Income
301(1)
Expected Outlays for Replacements and Capital Improvements
302(1)
Estimated Sale Price
302(1)
Introduction to Investment Analysis
303(1)
Internal Rate of Return (IRR)
303(1)
Present Value
304(1)
ARGUS Solution
304(1)
Introduction to Debt Financing
304(4)
Measures of Investment Performance Using Ratios
306(1)
Before-Tax Cash Flow from Sale
306(2)
Summary of Investment Analysis Calculations
308(1)
Taxation of Income-Producing Real Estate
308(1)
Taxable Income from Operation of Real Estate
309(2)
Depreciation Allowances
309(1)
Loan Points
310(1)
Tax Liability and After-Tax Cash Flow
311(1)
Taxable Income from Disposal of Depreciable Real Property
311(1)
After-Tax Investment Analysis
312(3)
After-Tax Cash Flow from Operations
312(1)
After-Tax Cash Flow from Sale
313(1)
After-Tax IRR
314(1)
Effective Tax Rate
314(1)
A Note about Passive Losses
315(5)
Special Expectations to PAL Rules
316(4)
Financial Leverage and Financing Alternatives
320(35)
Introduction to Financial Leverage
320(6)
Conditions for Positive Leverage---Before Tax
321(4)
Conditions for Positive Leverage---After Tax
325(1)
Break-Even Interest Rate
326(2)
Risk and Leverage
328(2)
Underwriting Loans on Income Properties
330(2)
Market Study and Appraisal
330(1)
Borrower Financials
330(1)
The Loan-to-Value Ratio
331(1)
The Debt Coverage Ratio
331(1)
Other Loan Terms and Mortgage Covenants
332(2)
Alternatives to Fixed Rate Loan Structures
334(1)
Participation Loans
335(5)
Lender Motivations
335(1)
Investor Motivations
336(1)
Participation Example
336(4)
Sale-Leaseback of the Land
340(2)
Effective Cost of the Sale-Leaseback
342(1)
Interest-Only Loans
342(1)
Accrual Loans
342(4)
Structuring the Payment for a Target Debt Coverage Ratio
344(2)
Convertible Mortgages
346(2)
Lender's Yield on Convertible Mortgage
346(2)
Comparison of Financing Alternatives
348(2)
Monument Office Example---ARGUS Solution with a Loan
350(5)
Risk Analysis
355(31)
Introduction
355(12)
Comparing Investment Returns
355(1)
Types of Risk
356(2)
Due Diligence in Real Estate Investment Risk Analysis
358(1)
Sensitivity Analysis
358(4)
Partitioning the IRR
362(1)
Variations in Returns and Risk
363(4)
Retail Case Study---Westgate Shopping Center
367(3)
Westgate Shopping Center Scenario Analysis
368(2)
Westgate Shopping Center---Argus Analysis
370(1)
Lease Rollover Risk
370(2)
Market Leasing Assumptions with Renewal Probabilities
372(1)
Market Rent
373(1)
Months Vacant
373(1)
Leasing Commissions
373(1)
Tenant Improvements
373(1)
Industrial Case Study---Worthington Distribution Center
373(3)
Solution with ARGUS
376(1)
Risk and Leverage
376(3)
A ``Real Options'' Approach to Investment Decisions
379(7)
Traditional Approach to Land Valuation
380(1)
Real Option Approach to Land Valuation
381(1)
Real Options Extensions and Strategy
382(4)
Disposition and Renovation of Income Properties
386(20)
Disposition Decisions
386(2)
A Decision Rule for Property Disposal
387(1)
IRR for Holding versus Sale of Property
388(3)
Returns to a New Investor
391(4)
Marginal Rate of Return
391(4)
Refinancing as an Alternative to Disposition
395(2)
Incremental Cost of Refinancing
395(1)
Refinancing at a Lower Interest Rate
396(1)
Renovation as an Alternative to Disposition
397(2)
Renovation and Refinancing
399(1)
Rehabilitation Investment Tax Credits
400(6)
Low-Income Housing
402(4)
Financing Corporate Real Estate
406(23)
Lease-versus-Own Analysis
407(13)
Leasing versus Owning---An Example
407(1)
Cash Flow from Leasing
408(1)
Cash Flow from Owning
408(2)
Cash Flow from Owning versus Leasing
410(1)
Return from Owning versus Leasing
410(1)
Importance of the Residual Value of Real Estate
411(2)
The Investor's Perspective
413(1)
A Note on Project Financing
414(1)
Factors Affecting Loan-versus-Lease Decisions
415(5)
The Role of Real Estate in Corporate Restructuring
420(1)
Sale-Leaseback
421(3)
Refinancing
424(1)
Investing in Real Estate for Diversification
424(3)
Appendix Real Estate Asset Pricing and Capital Budgeting Analysis: A Synthesis
427(2)
PART FOUR FINANCING PROPOSED PROJECTS
Financing Project Development
429(37)
Introduction
429(1)
Overview: The Planning and Permitting Process
429(3)
The Development of Income-Producing Property
432(4)
Market Risks and Project Feasibility
434(2)
Project Risks
436(1)
Project Development Financing---An Overview
436(2)
Lender Requirements in Financing Project Development
438(9)
Loan Submission Information for Loan Requests---An Overview
438(4)
Contingencies in Lending Commitments
442(1)
The Construction or Interim Loan
443(1)
Methods of Disbursement---Construction Lending
444(1)
Interest Rates and Fees
444(1)
Additional Information for Interim Loan Submission
445(1)
Requirements to Close the Interim Loan
445(1)
The Permanent Loan Closing
446(1)
Project Development Illustrated
447(9)
Project Description and Project Costs
447(5)
Market Data and Tenant Mix
452(1)
Pro Forma Construction Costs and Cash Flow Projections
453(3)
Feasibility, Profitability, and Risk---Additional Issues
456(10)
Profitability before and after Taxes
456(3)
Sensitivity Analysis, Risk, and Feasibility Analysis
459(7)
Financing Land Development Projects
466(29)
Characterization of the Land Development Business
466(2)
The Land Development Process---An Overview
468(5)
Acquisition of Land---Use of the Option Contract
468(2)
Financing and Development
470(3)
Lender Requirements in Financing Land Development
473(3)
Detailed Cost Breakdowns
475(1)
General Contracts and Subcontracts
475(1)
Residential Land Development Illustrated
476(11)
Market Conditions and Site Plan
476(3)
Estimating Development Cost and Interest Carry
479(8)
Estimating Release Prices per Parcel Sold
487(1)
Loan Request and Repayment Schedule
487(1)
Project Feasibility and Profitability
487(8)
Project IRR and Net Present Value
490(1)
Entrepreneurial Profits
491(1)
Sensitivity Analysis
491(4)
PART FIVE ALTERNATIVE REAL ESTATE INVESTMENT VEHICLES
Partnerships, Joint Ventures, and Syndications
495(21)
Introduction: What Is a Syndicate?
495(1)
Use of the Limited Partnership in Private and Public Syndicates
496(1)
Private Syndication Problem Illustrated
496(4)
Financial Considerations---Partnership Agreement
497(1)
Operating Projections
498(1)
Statement of Before-Tax Cash Flow (BTCF)
499(1)
Calculation of Net Income or Loss
500(1)
Calculation of Capital Gain from Sale
500(1)
Capital Accounts
500(4)
Distribution of Cash from Sale of Asset
502(1)
Calculation of After-Tax Cash Flow and ATIRR on Equity
502(2)
Partnership Allocations and Substantial Economic Effect
504(1)
Capital Accounts and Gain Charge-Backs
505(2)
Use of the Limited Partnership in Private and Public Syndicates
507(1)
Use of Corporate General Partners
508(1)
Private versus Public Syndicates
508(2)
Accredited Investors---Regulation D
509(1)
Regulation of Syndicates
510(2)
Investment Objectives and Policies
510(1)
Promoters' and Managers' Compensation
511(1)
Investor Suitability Standards
511(1)
Federal and State Securities Authorities
512(1)
Joint Ventures
512(4)
The Secondary Mortgage Market: Pass-Through Securities
516(27)
Introduction
516(1)
Evolution of the Secondary Mortgage Market
516(1)
Early Buyers of Mortgage Loans
517(1)
A Secondary Market after 1954
517(1)
FNMA's Changing Role
518(1)
The Government National Mortgage Association
518(2)
Mortgage-Backed Securities and the GNMA Payment Guarantee
519(1)
The Federal Home Loan Mortgage Corporation
520(1)
Operation of the Secondary Mortgage Market
520(2)
Direct Sale Programs
520(1)
The Development of Mortgage-Related Security Pools
521(1)
Mortgage-Backed Bonds
522(4)
Pricing Mortgage-Backed Bonds
523(1)
Subsequent Prices
524(2)
Mortgage Pass-Through Securities
526(11)
Important Characteristics of Mortgage Pools
527(4)
Mortgage Pass-Through Securities: A General Approach to Pricing
531(2)
Mortgage Pass-Through Payment Mechanics Illustrated
533(1)
Prepayment Patterns and Security Prices
534(2)
Prepayment Assumptions
536(1)
The Effects of Prepayment Illustrated
537(6)
Security Prices and Expected Yields
539(1)
Market Interest Rates and Price Behavior on Mortgage Pass-Throughs
539(1)
A Note on MBBs and MPTs
540(3)
The Secondary Mortgage Market: CMOs and Derivative Securities
543(37)
Introduction
543(1)
Mortgage Pay-Through Bonds (MPTBs)
543(1)
Collateralized Mortgage Obligations
544(14)
CMOs Illustrated
545(2)
CMO Mechanics
547(5)
CMOs: Pricing and Expected Maturities
552(3)
CMO Price Behavior and Payment Rates
555(1)
CMO Tranche Variations
556(2)
Derivatives Illustrated
558(6)
Yield Enhancement
561(1)
IO and PO Strips
561(3)
Convexity
564(1)
Residential Mortgage-Related Securities: A Summary
564(2)
Residential Mortgage-Related Securities: Some Closing Observations
566(1)
Commercial Mortgage-Backed Securities (CMBSs)
566(11)
Rating Commercial Mortgage-Backed Securities
570(2)
Mortgage-Related Securities and REMICs
572(1)
REMICs: Other Considerations
573(4)
Appendix Duration---An Additional Consideration in Yield Measurement
577(3)
Real Estate investment Trusts (REITs)
580(23)
Introduction
580(3)
Legal Requirements
580(3)
Tax Treatment
583(1)
Violation Penalties and Status Termination
583(1)
Taxable REIT Subsidiaries
583(1)
Types of Trusts
583(8)
Equity Trusts
584(1)
The Investment Appeal of Equity Trusts
585(1)
Private REITs
586(1)
Importance of FFO (Funds from Operations)
586(2)
REIT Expansion and Growth
588(3)
Important Issues in Accounting and Financial Disclosure: Equity REITs
591(4)
Tenant Improvements and Free Rents: Effects on FFO
591(1)
Leasing Commissions and Related Costs
592(1)
Use of Straight-Line Rents
592(1)
FFO and Income from Managing Other Properties
593(1)
Types of Mortgage Debt and Other Obligations
593(1)
Existence of Ground Leases
593(1)
Lease Renewal Options and REIT Rent Growth
594(1)
Occupancy Numbers: Leased Space or Occupied Space?
594(1)
Retail REITs and Sales per Square Foot
595(1)
Additional Costs of Being a Public Company
595(1)
The Investment Appeal of Mortgage REITs
595(8)
Financial Analysis of an Equity REIT Illustrated
597(6)
Real Estate Investment Performance and Portfolio Considerations
603(24)
Introduction
603(1)
The Nature of Real Estate Investment Data
603(1)
Sources of Data Used for Real Estate Performance Measurement
604(2)
REIT Data: Security Prices
604(1)
Hybrid and Mortgage REITs
604(2)
NCREIF Property Index: Property Values
606(1)
Data Sources for Other Investments
606(1)
Cumulative Investment Return Patterns
606(1)
Computing Holding Period Returns
607(2)
Computing Investment Returns
609(1)
Risk, Return, and Performance Measurement
609(2)
Risk-Adjusted Returns: Basic Elements
610(1)
Elements of Portfolio Theory
611(4)
Calculating Portfolio Returns
613(1)
Portfolio Risk
613(3)
Portfolio Weighting: Trading Off Risk and Return
616
Real Estate Returns, Other Investments, and the Potential for Portfolio Diversification
615(12)
Portfolio Diversification: EREITs and Other Investments
618(2)
Public versus Private Real Estate Investments
620(1)
Real Estate Performance and Inflation
621(6)
Index 627


Please wait while the item is added to your cart...