Practical Finance for Property Investment provides readers with an introduction to the most fundamental concepts, principles, analytical methods, and tools useful for making investing and financing decisions regarding income-producing property. The book begins by considering how to value income-producing property by forecasting a property’s cash flows and estimating appropriate discount rates. It then discusses how both debt and private equity are used as methods to finance a property’s acquisition. The book provides a thorough discussion of the taxation of property income as well as how investors can quantify the risks to investing in property. The book concludes with important considerations for investors when their investment thesis does not come to fruition.
Practical Finance for Property Investment offers a unique and novel pedagogy by pairing each book chapter with an in-depth real-world case study, which forces readers to confront the occasional tensions between finance theory and property investment practice. The book is designed for investors and students interested in learning what finance theory implies about property investment.
Readers and Instructors can access electronic resources, including the spreadsheets used in the textbook, at the book's website: www.routledge.com/9780367333041.
Table of Contents
Chapter 1: Leasing
Chapter 2: Property valuation
Chapter 3: Debt financing
Chapter 4: Equity partnerships
Chapter 5: The taxation of property investment
Chapter 6: The quantification of risk
Chapter 7: When things go wrong
Craig Furfine is a Clinical Professor of Finance at the Kellogg School of Management at Northwestern University where he teaches classes in corporate finance and real estate finance. Furfine has published scholarly research on interbank markets, banking, and real estate finance and 18 case studies covering a wide range of topics on the latter.