Real Estate Finance & Investment (331-0-20)
Instructors
Craig Furfine
847/467-2905
Kellogg Global Hub #4373
Office Hours: By Appointment
Furfine studies the functioning of interbank markets, commercial mortgage securitization, and real estate finance, having published in scholarly journals including the Review of Corporate Finance Studies, the Journal of Business, the Journal of Monetary Economics and the Journal of Money, Credit, and Banking. He currently serves as an Associate Chair of the Finance Department, Associate Editor of the Journal of Money, Credit, and Banking and Treasurer of the Midwest Finance Association. Prior to joining the Kellogg School faculty, he was an economic advisor in the economic research department at the Federal Reserve Bank of Chicago. Furfine teaches corporate finance, multiple courses on real estate finance, and has written eighteen case studies covering a wide range of topics in real estate finance. He received a PhD in economics from Stanford University.
Meeting Info
Technological Institute M349: Mon, Wed 3:30PM - 4:50PM
Overview of class
*INFORMATION IS SUBJECT TO CHANGE*
The instructor of this course is: Craig Furfine
This course is an introduction to the most fundamental concepts, principles, analytical methods and tools useful for making investing and financing decisions regarding income-producing property. We begin the course by considering how to estimate the cash flows and discount rates for investment property, allowing us to estimate a property's fundamental value. We next discuss how investment property is generally financed by a close examination of real estate debt markets as well as real estate private equity. We consider the taxation of property as well as how investors should think about the risks to investing in property. We conclude with important considerations for investors when their investment thesis does not come to fruition. We will study property investment using the tools and framework of modern corporate finance and investments, while focusing on the institutional features unique to the real estate industry. As such, the course is designed for students with or without a real estate background, who may be interested in learning about investing in property, either personally or professionally.
Registration Requirements
Prerequisites: ECON 201-0, ECON 202-0, STAT 210-0 or equivalent, BUS_INST 304-0 or equivalent.
(ENTREP 330: Startup Accounting and Finance is not an equivalent course to BUS_INST 304-0).
BUS_INST 304-0 (Corporate Finance) may not be taken concurrently with BUS_INST 331-0.
Evaluation Method
Your grade in the course will be based on the maximum of the following:
- 10% two individual homework assignments, 20% two individual case studies, 15% three group
case studies, 15% midterm, 30% final, 10% class participation - 10% two individual homework assignments, 20% two individual case studies, 15% three group
case studies, 0% midterm, 45% final, 10% class participation
As indicated above, there are six components to your course grade.
Class Materials (Required)
Practical Finance for Property Investment 1st Edition by Craig Furfine
ISBN-13: 978-0367333041
Approx Cost: $54.00 on Amazon; $78.00 New at NU Bookstore
Class Notes
There are no wait lists for BUS_INST courses. If the class closes before your registration time, please check back.
For more information, please view sample syllabus: https://businessinstitutions.northwestern.edu/courses/course-descriptions/index.html
Class Attributes
Attendance at 1st class mandatory
Enrollment Requirements
Enrollment Requirements: Prerequisites: ECON 201-0, ECON 202-0, STAT 210-0 or equivalent, BUS_INST 304-0 or equivalent.