Real estate investment has a long history, going back well before the advent of the stock market. But unlike investing in stocks, real estate usually requires the use of leverage: a property is acquired with a percentage of equity, the rest financed with debt. To make that risk pay off, investors must have a clear strategy, know whether investments will be profitable, and understand how best to raise capital. In this course, Jan A. deRoos, professor at the Cornell SC Johnson College of Business, uses real-world examples and practical tools to teach these critical components of profitable real estate investment.
What you will learn
Analyze and apply different high-level investment strategies and understand the varying strategic perspectives of owners, operators, and lenders
Determine whether a proposed strategic real estate investment will be profitable by estimating its return on investment, return on equity, and market valuation
Examine the most common equity financing structures and determine the most appropriate options for raising capital based on owner strategy