Real estate principles : a value approach 5th ed.

Author

• Ling, David C.

Additional Author(s)

• Archer, Wayne

Publisher

New York: McGraw-Hill Education, 2018

Language

English

ISBN

9780077836368

Series

The McGraw-Hill/Irwin series in finance, insurance, and real estate

Subject(s)

• REAL ESTATE BUSINESS
• REAL PROPERTY-VALUTION

Notes

. . Index: p. 648-666

Abstract

Real Estate Principles: A Value Approach demonstrates how value is central to virtually all real estate decision-making. Students using Ling and Archer should finish the course with a value-oriented framework and a set of valuation and decision making tools that can be applied in a variety of real-world situations. The key to making a sound investment decision is to understand how property values are created, maintained, increased or destroyed.
Since the launch of Real Estate Principles: A Value Approach, significant and lasting changes have come upon the world of real estate. This is very true in real estate finance and capital sources where most of the traditional lenders have been transformed or displaced, giving way to a radically different set of players in mortgage finance. There has been changed with profound and far-reaching implications in a world where it is understandable that property values can go down as well as up. This realization will color every aspect of real estate investment, finance and transactions for the foreseeable future.

Physical Dimension

Number of Page(s)

xxx, 666 p.

Dimension

28 cm.

Other Desc.

ill.

Summary / Review / Table of Content

Cover
Series Info
Title Page
Copyright Information
Dedication
About the Author
Brief Contents
Preface
Main Features
End Features
Connect
Supplements
Acknowledgments
Contents
Part 1: Setting the Stage
Chapter 1: The Nature of Real Estate and Real Estate Markets
Introduction
Real Estate: Some Basic Definitions
Real Estate and the Economy
Real Estate Markets and Participants
Characteristics of Real Estate Markets
Summary
Part 2: Legal and Regulatory Determinants of Value
Chapter 2: Legal Foundations to Value
Introduction
The Nature of Property
The Real Property Bundle of Rights
Forms of Co-Ownership
Rights Related to Water
Rights to Oil, Gas, and Minerals
Summary
Web Appendix: Property Rights Relating to Water
Chapter 3: Conveying Real Property Interests
Introduction
Deeds
Modes of Conveyance of Real Property
Real Property Complexity and Public Records
Land Descriptions
Summary
Chapter 4: Government Controls and Real Estate Markets
Introduction
The Power of Government to Regulate Land Use
Public Planning for Land Use Control
Zoning and Other Tools of Public Land Use Control
Environmental Hazards
The Government’s Power of Eminent Domain
The Power of Government to Tax Real Property
Mechanics of the Property Tax
Criticisms of the Property Tax
Overview of Restrictions on Real Property Ownership
Summary
Part 3: Market Valuation and Appraisal
Chapter 5: Market Determinants of Value
Introduction
The Creation, Growth, and Decline of Cities
The Shape of a City
Differing Location Patterns of Urban Land Uses
The Role of Urban Analysis in Real Estate Decisions
Summary
Chapter 6: Forecasting Ownership Benefits and Value: Market Research
Introduction
Market Research: Slipperiest Step in Real Estate Valuation
Real Estate Market Research as Storytelling
Three Important Techniques in Market Analysis
Three Examples of Market Research
Some Final Notes on the Process of Market Research
Market Projections and Real Estate Cycles
Some Tools of Market Research
Summary
Chapter 7: Valuation Using the Sales Comparison and Cost Approaches
Introduction
Market Value, Investment Value, and Transaction Prices
The Appraisal Process
Traditional Sales Comparison Approach
The Cost Approach
Final Reconciliation
Summary
Web Appendix: Multivariate Regression Analysis
Chapter 8: Valuation Using the Income Approach
Introduction
Estimating Net Operating Income
Using Direct Capitalization for Valuation
Using Discounted Cash Flow Analysis for Valuation
Other Approaches
Final Reconciliation
Valuing Partial and Other Interests
Summary
Appendix: Other Methods of Estimating Cap Rates
Part 4: Financing Home Ownership
Chapter 9: Real Estate Finance: The Laws and Contracts
Introduction
The Note
The Mortgage or Deed of Trust
When Things Go Wrong
Acquiring a Property with an Existing Debt
Real Estate Debt without a Mortgage
Regulation of Home Mortgage Lending
Summary
Chapter 10: Residential Mortgage Types and Borrower Decisions
Introduction
Prime Conventional Mortgage Loans
Government-Sponsored Mortgage Programs
Other Mortgage Types and Uses
Recent Mortgage Forms
Subprime and Alt-A Loans
Qualified Mortgages
The Borrower’s Mortgage Loan Decisions
Summary
Web Appendix: Refinancing as a Problem of Net Present Value
Chapter 11: Sources of Funds for Residential Mortgages
Introduction
The Market for Home Mortgage Loans
The Revolution in Home Mortgage Finance
Mortgage Banking and Mortgage Brokerage
The Secondary Market for Residential Mortgages
Mortgage-Backed Securities
Purchasers of Residential Mortgages in the Secondary Market
The Big Picture of Home Mortgage Lending: Four Different Channels
Where Does a Borrower Find a Home Loan?
The Lender’s Mortgage Loan Decisions
Home Financing for Marginal Borrowers
Summary
Part 5: Brokering and Closing the Transaction
Chapter 12: Real Estate Brokerage and Listing Contracts
Introduction: Brokerage—The Best-Known Type of Real Estate Business
Law of Agency
Licensing of Real Estate Brokers and Salespersons
Designations in Sales and Brokerage
The Marketing Function
Listing Contracts
Types of Listing Contracts
Innovations in Brokerage
Listing Contract Provisions
Summary
Chapter 13: Contracts for Sale and Closing
Introduction: The Most Important Document in Real Estate
Rights and Obligations of Sellers and Buyers
Requirements of a Contract for Sale
Legal Title versus Equitable Title
The Form of the Contract for Sale
Contracts with Contingencies
Assignment
Remedies for Nonperformance
Closing and Closing Statements
The Continuing Story of a Sale
Escrow Closings
Summary
Part 6: Time, Opportunity Cost, and Value Decisions
Chapter 14: The Effects of Time and Risk on Value
Introduction
The Time Value of Money
Value and Risk
Determining Required Returns
Comparing Investment Values to Acquisition Costs
Summary
Web Appendix: Solving Time Value of Money Problems Using Excel
Chapter 15: Mortgage Calculations and Decisions
Introduction
Basic Computations
Fixed-Rate Mortgages
Adjustable Rate Mortgages
Summary
Part 7: Financing and Investing in Commercial Real Estate
Chapter 16: Commercial Mortgage Types and Decisions
Introduction
Loan Documents and Provisions
Common Types of Permanent Mortgages
Alternative Financing Arrangements
The Borrower’s Decision-Making Process
The Permanent Loan Application and Approval Process
Land Acquisition, Development, and Construction Financing
Summary
Chapter 17: Sources of Commercial Debt and Equity Capital
Introduction
Forms of Ownership for Pooled Equity Investments
Ultimate Equity Investors in Commercial Real Estate
Sources of Commercial Real Estate Debt
A Closer Look at Real Estate Investment Trusts
Summary
Chapter 18: Investment Decisions: Ratios
Introduction
Investment Decision Making
Effects of Debt Financing on Cash Flows
Evaluating the Cash Flow Estimates
Partnerships and Other Direct Forms of Ownership
Effects of Income Taxes
Single-Year Investment Criteria
Financial Risk Ratios
Limitations of Ratio Analysis
Summary
Chapter 19: Investment Decisions: NPV and IRR
Introduction
Investment Valuation versus Market Valuation
Investment Valuation Using Discounted Cash Flow Models
The Impact of Leverage on Expected Returns
The Impact of Leverage on Risk
Income Taxes and Investor Cash Flows
More Detailed Cash Flow Projections
Varying the Assumptions
Summary
Chapter 20: Income Taxation and Value
Introduction
Four Classes of Real Property
Income Subject to Taxation
Income Tax Rates
Estimating Tax Liabilities from Operations
Estimating Tax Liabilities from Sale
Like-Kind Exchanges
Tax Factors Affecting Homeowners
Summary
Part 8: Creating and Maintaining Value
Chapter 21: Enhancing Value through Ongoing Management
Introduction
Functions of a Property Manager
Property Management Agreements
Professional Associations and Designations
Asset Management
Managing Corporate Real Estate Assets
Summary
Chapter 22: Leases and Property Types
Introduction
Essential Elements of a Lease
Negotiated Lease Provisions
Effective Rent
Residential Rental Properties and Leases
Office Properties and Leases
Retail Properties and Leases
Industrial Properties and Leases
Hospitality Properties
Summary
Chapter 23: Development: The Dynamics of Creating Value
Introduction
The Process of Development
The “Numbers” of Development
What Is It Like to Be a Developer?
What Does It Take to Enter Development?
Summary
Glossary
Index
Appendix: Multivariate Regression Analysis
Appendix: Refinancing as a Problem of Net Present Value
Appendix: Solving Time-Value-of-Money Problems Using EXCEL

Exemplar(s)

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