Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R....

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Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010

Transcript of Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R....

Page 1: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Lecture 16 (b): Portfolio Project Examples

byJames R. DeLisle, Ph.D.

March 10, 2010

Page 2: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James 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

Page 3: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Organization

Page 4: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Problem Statement

Page 5: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Client Profile

Page 6: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Strategy

Page 7: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Stage Setting: Current Environment

Page 8: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Seattle Real Estate Market

Page 9: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Criteria

Page 10: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Property Profile

Page 11: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Relative Project Performance Indicators

Page 12: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Alternative Portfolios

Page 13: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Optimal Mix

Page 14: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Portfolio Performance

Page 15: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Operating Period

Page 16: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Exit Strategy

Page 17: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

Real Estate Finance

© JR DeLisle, Ph. D.

Appendix

Page 18: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

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

Page 19: Real Estate Finance © JR DeLisle, Ph. D. Lecture 16 (b): Portfolio Project Examples by James R. DeLisle, Ph.D. March 10, 2010.

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