Real Estate Finance

© JR DeLisle, Ph. D.

Lecture 16 (b): Portfolio Project Examples

byJames R. DeLisle, Ph.D.

March 10, 2010

Real Estate Finance

© JR DeLisle, Ph. D.

Peer Review: Evaluative Criteria

Quality of Content

• Problem Statement/Goals• Overall Logic/Rationale• Portfolio Strategy Statement • Portfolio Assemblage Analysis• Operation Strategy• Conclusions/Recommendations

Quality of Presentation

• Delivery• Organization• Strength of message• Teamwork/Participation• Presentation materials

Real Estate Finance

© JR DeLisle, Ph. D.

Organization

Real Estate Finance

© JR DeLisle, Ph. D.

Problem Statement

Real Estate Finance

© JR DeLisle, Ph. D.

Client Profile

Real Estate Finance

© JR DeLisle, Ph. D.

Strategy

Real Estate Finance

© JR DeLisle, Ph. D.

Stage Setting: Current Environment

Real Estate Finance

© JR DeLisle, Ph. D.

Seattle Real Estate Market

Real Estate Finance

© JR DeLisle, Ph. D.

Criteria

Real Estate Finance

© JR DeLisle, Ph. D.

Property Profile

Real Estate Finance

© JR DeLisle, Ph. D.

Relative Project Performance Indicators

Real Estate Finance

© JR DeLisle, Ph. D.

Alternative Portfolios

Real Estate Finance

© JR DeLisle, Ph. D.

Optimal Mix

Real Estate Finance

© JR DeLisle, Ph. D.

Portfolio Performance

Real Estate Finance

© JR DeLisle, Ph. D.

Operating Period

Real Estate Finance

© JR DeLisle, Ph. D.

Exit Strategy

Real Estate Finance

© JR DeLisle, Ph. D.

Appendix

Real Estate Finance

© JR DeLisle, Ph. D.

Lecture Overview

• Real Estate Development– Timelines– Risk and Return– Risk Management

• Types of Loans– Land Development Loans– Construction Loans– Permanent Loans

• Development Loan Example– Project Profile– Draws– Project IRRs

Real Estate Finance

© JR DeLisle, Ph. D.

Lecture Review

• Real Estate Development– Timelines– Risk and Return– Risk Management

• Land Development Loans• Construction Loans• Permanent Loans• Development Cash Flow Example