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FNCE 232 Real Estate Investments Lecture 3 Basic Cash Flow Concepts Professor C. F. Sirmans Office: Room 443 School of Business Office Hours: 2:30 - 3:30 Tu & Th Administrative Issues Real Estate SocietyKonover Fieldtrip Real Estate Scholarships Resumes for Internships and Jobs Teaching Assistants Teaching Assistants Katherine Tunsky Office Room #: Room 401 (Business) Nicholas Seccareccia Office Room #: Room 401 (Business) Review From Lecture 2 What is the basic real estate investment decision? How to measure a good investment? Who are the main participants in any real estate investment? How to they interact with each other? Basic Investment Model Buy What are Cash (Out)flows at acquisition? Operate What are the expected cash flows from operation? Sale What are the expected cash flows from the future sale of the investment? How to make the investment decision? Basic Investment Model Some other important decisions: What is the expected holding period? How to calculate the expected rate of return? What is the required rate of return? What is the Value of the investment?... View Full Document

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