Exam 1 Review
Baruch College: RES3200 SET 6
1
Baruch College: RES3200
RES-3200
2
Intro
Legal
Finance
FRM
Exam 1
ARM
Refi
Underwriting
Buy vs Lease
Exam 2
Commercial RE
Pro Forma
Underwriting
Cap rates
Leverage
Risk
Development
Ownership En
Res 3400.
1) What rate would you need on a mortgage to be equivalent in rate to a 7.5% bond.
(1+EAR) = (1+APR/m)^m
(1+EAR) = (1+7.5/2)^2
EAR = 7.6%
APR = p*[(EAR+1)^(1/p) 1]
APR = 2 x [(.076+1)^(1/2) 1]
APR = .0746 = 7.46%
2) Based on a settlement in a la
REAL ESTATE
REAL ESTATE
Essentially a simple business
REAL ESTATE
Essentially a simple business
Buy Low and Sell High
REAL ESTATE
Essentially a simple business
Buy Low and Sell High
The National Economy Drives Capital Markets
REAL ESTATE
Essentiall
Real
Estate
Valuation
(RES 3300)
INTRODUCTIONS
COURSE OVERVIEW AND ADMINISTRATION
Blackboard
CHECK BLACKBOARD SITE JUST BEFORE EACH CLASS!
All e-mails sent to your @baruch.cuny.edu e-mail address
RE Valuation Chapter 1
3
Course Structure
17 weeks (includi
Real
Estate
Valuation
(RES 3300)
Chapter 3 Market Area and Neighborhood Analysis
What is Market Analysis?
Generally the purpose of a market analysis is to analyze and make
judgments concerning the future demand for a real estate project and
to identify th
Real
Estate
Valuation
(RES 3300)
Chapter 8 Income Capitalization Approach
Income Approach in the Valuation Process
Value determined as present value of future benefits (cash flows)
Reliability of property value dependant upon appraisers ability to
forecas
Real
Estate
Valuation
(RES 3300)
Chapter 7 Investment Return Calculations and
Discount Rate Selection
Return Calculations and a Discount Rate
Typical investor actions ultimately affect property market value
Ratios and multipliers try to assess whether sub
Real
Estate
Valuation
(RES 3300)
Chapter 4 Site and Improvements
Description and
Analysis
Legal Description
Metes and bounds are used throughout the United
States
Elsewhere the government or rectangular system is
used (lot and block)
The rectangular syste
RES 3400
Final Exam
Our final exam is December 14th from 3:30-5:30pm. You will have the entire testing
period to complete the exam.
Syllabus: Please review all of the policies on the syllabus regarding exams.
Please bring:
1) Writing utensil(s). You may u
RES 3400
Real Estate Capital Markets
Exam #1, Fall 2016
Instructor: Meagan McCollum
Department of Real Estate
Baruch College
November 21, 2016
Name:
Do NOT open this exam before instructed to do so.
Instructions:
You have the entire exam period, 2:30PM-3
CMBS Exam Question
Given a pool with the following characteristics:
20 interest-only (IO) loans, each loan is for $15M, 6.5% interest rate, 3 year maturity,
each has initial LTV of 75%
A 25% pari passu piece of a loan on a property worth $250,000,000 IO l
I
REA 3400 Quizs ' .IastName; he; FirstNazme: 11
Problemlle pomts) n - :11 M 31., M?
A partially amortIzIng mprtgage loan is made for $80,9Q0 for 15 years. The Eterest rate: is 6 percent per year
compounding monthly The borrower and lender aglzee that a
BARUCH COLLEGE
RES 3400 (EMW 29199)
Real Estate Capital Markets
Spring 2017
Instructor: Mitchell E. Ryan
Class Schedule: Monday and Wednesday 2:30-3:45
Classroom: B Vert 9-150
Email: [email protected]
Office: NA
Office Hours: by appointment
Course Desc
Homework Packet 1 due February 15, 2017 at 2PM.
1) What rate would you need on a mortgage to be equivalent in rate to a 7.5% bond.
2) Based on a settlement in a law suit, you are ordered to pay 100,000 at the end of
5 years adjusted by CPI. How much would
Prof. MingMing
05/11/16
How does Mortgage Pass Through Security Work?
Pool the Asset:
For example, I want to buy a house. I need to get a mortgage from the bank. The bank
transfers the money into my account. I agree to repay the money in certain period. T
Problem Set 5
Solutions
RES 3400
11/7/2016
Question 1
What is convexity in the context of bond pricing? How does it impact
the price of bonds when market yields increase? When market yields
decrease?
Question 1 Solution
Convexity is a measure of the cur
Problem Set 6
Solutions
RES 3400
11/15/2016
Question 1
Imagine you are presented with the opportunity to invest in either an
agency RMBS deal or a CMBS deal. Briefly describe some of the risks
that you should consider before choosing your investment and
Problem Set 7
Solutions
RES 3400
12/7/2016
Question 1
Which of the following REIT types is LEASE likely to own real
property?
Equity REIT
Mortgage REIT
Hybrid REIT
None of the above own real property
Question 1 Solution
Which of the following REIT t
Problem Set 8
Solutions
RES 3400
12/12/2016
Q1
Given the following information, what is the FFO/share for this REIT?
In this period: Rent=3,000,000; Operating Expenses=1,000,000;
Depreciation= 125,000; Gains from Sale of Property=500,000.
Additionally, t
Real
Estate
Valuation
(RES 3300)
Chapter 5 Compound Interest and Discount Factors
The Four-Quadrants of Real Estate Finance
RE Valuation Chapter 5
Equity
Equity
(e.g., Down Payment)
(e.g., REITs and REOCs)
Debt
Debt
(e.g., Mortgages)
(e.g., CMBS and CMOs)
Real
Estate
Valuation
(RES 3300)
Chapter 2 Appraisal Principles and Highest and Best
Use Analysis
A Role of Real Estate
Just a few years ago, economists thought - as they did in 1929
that rising real estate prices, in conjunction with historically low
mo
Calculating Better Spreads
Spot Curve and Z
Spread
Spot Curve and Z Spread
Steps
Various calculations use z-spreadsto calculate spreads as they are better indicators of return
than static spread over the term.
Working backwards to find a z spread, we need
SECURITIZATION
The substitution of more efficient public capital markets for
less efficient, higher cost, financial intermediaries in the
funding of debt instruments. Kendall And Fishman
SECURITIZATION
reduction in the use of intermediaries between prod
Mortgage Pass Through Security
Data Input Box:
Number of mortgages in initial pool
Average mortgage balance
Initial mortgage pool balance
Prepayment rate
Mortgage rate
Servicing and Guarantee Fee
Coupon rate
40
$25,000
$1,000,000
10.00%
10.00%
0.5%
9.50%
Homework Part II
Last Name:
First Name:
Problem 1:
$50,000 is due 20 years from today. The borrower wants to make semi-annual payments into a fund that will earn
compound interest at an annual rate of 5%, compounding monthly. When you calculate the semi-a
Homework Part I
Last Name:
First Name:
Problem 1:
$50,000 is due 20 years from today. The borrower wants to make yearly payments at the end of each year into a fund
that will earn compound interest at an annual rate of 5%, compounding yearly. What will th
1. Which of the following increases default risk to CMBS investors?
A. Geographic concentration
B. Long-term leases
C. External tail
D. All of the above
E. None of the above
2. What is the Macaulay duration of a 2-year bond with a par
value of $1,000 that
Problem Set 5: Solutions
RES 3200
4/9/2017
Question 1
You are considering buying a property today for
$300,000. You plan to finance this purchase with
80% debt (LTV=0.8 on mortgage). The appreciation
rate on the property value is expected to be 3%
annuall
BARUCH COLLEGE
RES 3400 (EMWA 45251)
Real Estate Capital Markets
Spring 2017
Instructor: Professor Mingming Qiu Ph.D
Class Schedule: Tuesday and Thursday, 5:50PM - 7:05PM
Classroom: C - Newman 203
Email: [email protected]
Office: Real Estate De