| Preface |
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vii | |
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1 | (68) |
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The Nature of Real Estate and Real Estate Markets |
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2 | (18) |
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2 | (1) |
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Real Estate: Some Basic Definitions |
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3 | (4) |
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Real Estate: A Tangible Asset |
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3 | (2) |
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Real Estate: A Bundle of Rights |
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5 | (1) |
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Real Estate: An Industry and Profession |
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6 | (1) |
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Real Estate and the Economy |
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7 | (4) |
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Land Use in the United States |
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7 | (1) |
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Real Estate and U.S. Wealth |
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8 | (3) |
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Real Estate Markets and Participants |
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11 | (3) |
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11 | (1) |
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11 | (1) |
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12 | (1) |
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The Interaction of Three Value-Determining Sectors |
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12 | (2) |
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The Production of Real Estate Assets |
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14 | (1) |
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Characteristics of Real Estate Markets |
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14 | (2) |
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15 | (1) |
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15 | (1) |
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15 | (1) |
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15 | (1) |
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Privately Negotiated Transactions with High Transaction Costs |
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16 | (1) |
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16 | (4) |
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Value and Real Estate Decisions |
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20 | (20) |
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20 | (1) |
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The Idea of Investment Value |
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21 | (1) |
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Investment Value in Real Estate |
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22 | (4) |
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Investment Value and Time |
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22 | (1) |
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Investment Value and Nonmonetary Effects |
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23 | (1) |
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Incremental Investment Value |
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24 | (2) |
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Incremental Investment Value with Financing |
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26 | (1) |
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Investment Value and Risk |
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26 | (8) |
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29 | (1) |
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30 | (1) |
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31 | (2) |
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Revisiting Three Investment Risk Scenarios |
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33 | (1) |
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Risk, Investment Value, and Yield |
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33 | (1) |
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A Portfolio Perspective on Real Estate Investment |
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34 | (1) |
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Investment Value and Appraisal |
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35 | (1) |
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36 | (4) |
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The Effects of Time and Risk on Value |
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40 | (29) |
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40 | (1) |
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41 | (15) |
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42 | (1) |
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43 | (1) |
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Equations, Calculators, and Spreadsheets |
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43 | (1) |
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44 | (5) |
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49 | (5) |
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Yields and Internal Rates of Return |
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54 | (2) |
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Determining Required Returns |
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56 | (2) |
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Comparing Investment Values to Acquisition Costs |
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58 | (2) |
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60 | (3) |
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Appendix: Solving Time-Value-of-Money Problems Using Excel |
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63 | (6) |
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part 2 SOURCES AND LIMITATIONS TO VALUE |
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69 | (118) |
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Legal Foundations to Value |
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70 | (29) |
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70 | (1) |
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71 | (5) |
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71 | (2) |
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Real Property and Personal Property: The Problem of Fixtures |
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73 | (3) |
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The Real Property Bundle of Rights |
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76 | (8) |
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Possessory Interests (Estates) |
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76 | (3) |
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79 | (5) |
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84 | (7) |
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Indirect Co-Ownership through a Single Entity |
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84 | (1) |
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85 | (5) |
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90 | (1) |
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91 | (1) |
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Rights to Oil, Gas, and Minerals |
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91 | (2) |
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93 | (3) |
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Appendix: Property Rights Related to Water |
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96 | (3) |
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Market Determinants of Value |
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99 | (30) |
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99 | (2) |
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Market Misjudgments in Real Estate |
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99 | (1) |
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100 | (1) |
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The Creation, Growth, and Decline of Cities |
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101 | (8) |
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101 | (1) |
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The Economic Base of a City |
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102 | (5) |
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Resources of a City: The Supply Side of Urban Growth |
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107 | (2) |
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109 | (10) |
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Demand for Proximity and Bid-Rent Curves |
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114 | (1) |
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Bid-Rent Curves, Urban Land Use, and Land Value Contours |
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114 | (1) |
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Changing Transportation, Changing Technology, and Changing Urban Form |
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114 | (5) |
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Differing Location Patterns of Urban Land Use |
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119 | (5) |
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Convenience ``Goods'' and Central Place Patterns |
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119 | (3) |
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Comparison Goods and Clustering |
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122 | (1) |
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Industry Economies of Scale and Clustering |
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122 | (2) |
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The Role of Urban Analysis in Real Estate Decisions |
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124 | (1) |
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125 | (4) |
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Government Controls and Real Estate Markets |
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129 | (28) |
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129 | (1) |
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The Power of Government to Regulate Land Use |
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130 | (4) |
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Monopolies, Externalities, and Other Market Distortions |
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130 | (4) |
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Public Planning for Land Use Control |
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134 | (3) |
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134 | (2) |
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Challenges in Public Land Use Planning |
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136 | (1) |
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Zoning and Other Tools for Public Land Use Control |
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137 | (4) |
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138 | (1) |
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138 | (1) |
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139 | (1) |
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Zoning and Planned Administration |
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140 | (1) |
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Modern Tools of Land Use Control |
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141 | (1) |
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141 | (1) |
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142 | (3) |
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Types of Hazardous Materials |
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143 | (1) |
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Implications for Real Estate Investors |
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144 | (1) |
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The Government's Power of Eminent Domain |
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145 | (2) |
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146 | (1) |
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146 | (1) |
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Inverse Condemnation and Regulatory Takings |
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147 | (1) |
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The Power of Government to Tax Real Property |
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147 | (1) |
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Mechanics of the Property Tax |
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148 | (4) |
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Determining a Jurisdication's Budget and Tax Rate |
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149 | (1) |
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149 | (1) |
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Homestead and Other Exemptions |
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150 | (1) |
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Calculating Tax Liability |
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150 | (1) |
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151 | (1) |
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Nonpayment of Property Taxes |
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151 | (1) |
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Criticisms of the Property Tax |
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152 | (1) |
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152 | (5) |
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Forecasting Ownership Benefits and Value: Market Research |
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157 | (30) |
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157 | (1) |
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Market Research: The Weak Link of Real Estate Valuation |
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158 | (1) |
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159 | (1) |
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Real Estate Market Research as Storytelling |
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159 | (3) |
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The Beginning Point: A Market-Defining Story |
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160 | (1) |
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Initial Collection of Data |
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161 | (1) |
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161 | (1) |
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161 | (1) |
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A Reverse to Conventional Market Research |
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161 | (1) |
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Three Examples of Market Research |
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162 | (15) |
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Market Research Example 1: Elysian Forest, a Planned Unit Development |
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162 | (7) |
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Market Research Example 2: Palm Grove Office Complex |
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169 | (2) |
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Market Research Example 3: Plane Vista Apartments |
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171 | (6) |
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Some Final Notes on the Process of Market Research |
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177 | (1) |
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Improving One's Capacity in Real Estate Market Research |
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178 | (1) |
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Market Projections and Real Estate Cycles |
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178 | (2) |
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Some Tools of Market Research |
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180 | (3) |
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Geographic Information Systems (GIS) |
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180 | (2) |
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182 | (1) |
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182 | (1) |
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183 | (4) |
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part 3 MARKET VALUATION AND APPRAISAL |
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187 | (58) |
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Valuation Using the Sales Comparison and Cost Approaches |
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188 | (28) |
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188 | (2) |
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Market Value, Investment Value, and Transaction Prices |
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190 | (1) |
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191 | (4) |
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Definition of the Problem |
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192 | (1) |
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Data Selection and Collection |
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193 | (1) |
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Highest and Best Use Concepts |
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193 | (1) |
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Three Conventional Approaches to Estimating Market Value |
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193 | (1) |
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Reconciliation and a Final Estimate of Market Value |
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194 | (1) |
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194 | (1) |
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Traditional Sales Comparison Approach |
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195 | (8) |
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196 | (1) |
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196 | (1) |
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Adjustments to Comparable Property Transaction Prices |
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197 | (3) |
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200 | (1) |
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200 | (3) |
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A Note on the Selection of Comparables and Adjustments |
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203 | (1) |
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Reconciliation to an Indicated Value Estimate |
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203 | (1) |
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203 | (3) |
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204 | (2) |
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206 | (1) |
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Multivariate Regression Analysis |
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206 | (6) |
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Interpreting the Regression Results |
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210 | (2) |
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212 | (4) |
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Valuation Using the Income Approach |
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216 | (29) |
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216 | (2) |
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Direct Capitalization versus Discounted Cash Flow |
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217 | (1) |
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Estimating Net Operating Income |
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218 | (6) |
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220 | (1) |
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221 | (1) |
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222 | (1) |
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222 | (2) |
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224 | (1) |
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Using Direct Capitalization for Valuation |
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224 | (8) |
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Abstracting Cap Rates from the Market |
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224 | (3) |
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Understanding Capitalization Rates |
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227 | (1) |
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Other Methods of Estimating Cap Rates |
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228 | (1) |
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Reconciling Cap Rates and Estimating an Indicated Value |
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229 | (1) |
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230 | (2) |
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Using Discounted Cash Flow Analysis for Valuation |
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232 | (5) |
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233 | (1) |
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Estimating Future Sale Proceeds |
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233 | (1) |
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Levered versus Unlevered Cash Flows |
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234 | (1) |
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Valuing Unlevered Cash Flows |
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234 | (2) |
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Valuing Levered Cash Flows |
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236 | (1) |
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237 | (1) |
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238 | (1) |
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Valuing Partial and Other Interests |
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238 | (1) |
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239 | (6) |
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part 4 FINANCING REAL ESTATE OWNERSHIP |
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245 | (164) |
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Real Estate Finance: The Laws and Contracts |
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246 | (27) |
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246 | (1) |
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247 | (6) |
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Interest Rate and Interest Charges |
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247 | (1) |
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248 | (2) |
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250 | (1) |
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251 | (1) |
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251 | (1) |
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252 | (1) |
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252 | (1) |
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252 | (1) |
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252 | (1) |
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Inclusion of Mortgage Covenants by Reference |
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253 | (1) |
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253 | (3) |
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Description of the Property |
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254 | (1) |
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254 | (1) |
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254 | (1) |
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254 | (1) |
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254 | (1) |
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Hazardous Substances Clause and Preservation and Maintenance Clause |
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255 | (1) |
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255 | (1) |
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256 | (5) |
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256 | (1) |
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Nonforeclosure Responses to Default |
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257 | (1) |
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258 | (1) |
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259 | (1) |
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Judicial Foreclosure versus Power of Sale |
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259 | (1) |
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Bankruptcy and Foreclosure |
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260 | (1) |
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Acquiring a Property with an Existing Debt |
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261 | (1) |
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Real Estate Debt without a Mortgage |
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262 | (2) |
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Regulation of Home Mortgage Lending |
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264 | (4) |
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Equal Credit Opportunity Act |
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264 | (1) |
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264 | (1) |
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Real Estate Settlement Procedures Act |
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265 | (1) |
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Home Ownership and Equity Protection Act |
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266 | (1) |
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Other Laws Regulating Discrimination in Home Mortgage Lending |
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266 | (2) |
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268 | (5) |
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Mortgage Mechanics and Calculations |
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273 | (26) |
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273 | (1) |
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274 | (7) |
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274 | (1) |
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275 | (1) |
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276 | (1) |
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Effective Borrowing Cost (EBC) |
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277 | (2) |
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Up-front Costs, Holding Period, and Effective Borrowing Cost |
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279 | (2) |
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281 | (5) |
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Level-Payment, Fully Amortized Mortgages |
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281 | (1) |
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The Choice of Loan Term: A Question of Present Value |
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282 | (2) |
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Alternative Amortization Schedules |
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284 | (2) |
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Adjustable Rate Mortgages |
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286 | (5) |
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The Mechanics of Adjustable Rate Mortgages |
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286 | (2) |
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Initial Adjustment Periods, Rate Caps, and Other Options |
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288 | (3) |
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Other Mortgage Types and Uses |
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291 | (3) |
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291 | (1) |
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292 | (2) |
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294 | (5) |
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Residential Mortgage Types and Borrower Decisions |
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299 | (26) |
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299 | (2) |
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The Primary and Secondary Mortgage Markets |
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300 | (1) |
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Conventional Mortgage Loans |
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301 | (4) |
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Fixed-Rate Conventional Mortgages |
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301 | (1) |
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Adjustable Rate Mortgages |
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302 | (1) |
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Private Mortgage Insurance |
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303 | (2) |
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Government-Sponsored Mortgage Programs |
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305 | (4) |
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305 | (3) |
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308 | (1) |
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Other Mortgage Types and Uses |
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309 | (4) |
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309 | (1) |
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309 | (1) |
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310 | (1) |
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310 | (3) |
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The Borrower's Mortgage Loan Decisions |
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313 | (8) |
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313 | (1) |
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314 | (1) |
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315 | (5) |
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320 | (1) |
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321 | (4) |
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Sources of Funds for Residential Mortgages |
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325 | (29) |
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326 | (1) |
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The Market for Residential Finance |
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326 | (1) |
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Depository Lenders in the Primary Market |
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327 | (5) |
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Savings Institutions (Thrifts) and Their Decline |
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327 | (4) |
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331 | (1) |
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331 | (1) |
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Nondepository Lenders in the Primary Market |
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332 | (6) |
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333 | (4) |
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337 | (1) |
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Other Nongovernment-Sponsored Lenders |
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338 | (1) |
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The Secondary Market for Residential Mortgages |
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338 | (2) |
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Mortgage-Backed Securities |
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339 | (1) |
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Purchasers of Residential Mortgages in the Secondary Market |
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340 | (6) |
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340 | (1) |
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341 | (1) |
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342 | (1) |
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The Importance of Fannie Mae and Freddie Mac |
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343 | (2) |
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345 | (1) |
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345 | (1) |
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Other Secondary Market Purchasers |
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345 | (1) |
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The Lender's Mortgage Loan Decisions |
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346 | (2) |
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Traditional Home Mortgage Underwriting |
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346 | (1) |
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Modern Home Mortgage Underwriting |
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347 | (1) |
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Cash Down Payment Requirement |
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348 | (1) |
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Home Financing for Marginal Borrowers |
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348 | (3) |
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349 | (1) |
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350 | (1) |
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351 | (3) |
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Commercial Mortgage Types and Decisions |
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354 | (28) |
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354 | (1) |
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Loan Documents and Provisions |
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355 | (2) |
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355 | (1) |
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356 | (1) |
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Common Types of Permanent Mortgages |
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357 | (3) |
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357 | (2) |
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Restrictions on Prepayments |
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359 | (1) |
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Alternative Financing Arrangements |
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360 | (3) |
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360 | (1) |
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Installment Sale Financing |
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360 | (1) |
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361 | (1) |
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361 | (1) |
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Other Products and Structures |
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362 | (1) |
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Government-Sponsored Programs |
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362 | (1) |
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The Borrower's Decision-Making Process |
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363 | (8) |
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364 | (2) |
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366 | (1) |
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366 | (1) |
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Increased Variability of Equity Returns from Leverage |
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366 | (4) |
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Choosing among Alternative Financing Structures |
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370 | (1) |
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The Prepayment and Default Decisions |
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371 | (1) |
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Requesting a Permanent Loan |
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371 | (2) |
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372 | (1) |
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373 | (1) |
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The Lender's Decision-Making Process |
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373 | (3) |
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The Property and the Borrower |
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374 | (1) |
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375 | (1) |
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The Economic Justification |
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376 | (1) |
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From Application to Commitment |
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376 | (1) |
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Land Acquisition, Development, and Construction Financing |
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376 | (1) |
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377 | (5) |
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Sources of Commercial Debt and Equity Capital |
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382 | (27) |
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382 | (2) |
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How Large Is the Commercial Real Estate Market? |
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383 | (1) |
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Sources of Commercial Real Estate Equity Capital |
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384 | (6) |
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Publicly Owned Commercial Real Estate |
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384 | (3) |
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Privately Owned Commercial Real Estate |
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387 | (3) |
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Forms of Ownership for Pooled Equity Investments |
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390 | (4) |
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390 | (1) |
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391 | (1) |
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392 | (1) |
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392 | (1) |
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Limited Liability Company |
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393 | (1) |
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Sources of Commercial Real Estate Debt |
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394 | (2) |
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Mortgage Orginators versus Long-Term Holders |
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395 | (1) |
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Development and Construction Lending |
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396 | (1) |
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How Information Standards Help Attract More Capital |
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396 | (1) |
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A Closer Look at Real Estate Syndications |
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397 | (2) |
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The Role of the Syndicator/Organizer |
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397 | (1) |
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397 | (2) |
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Evaluating a Syndication Opportunity |
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399 | (1) |
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A Closer Look at Real Estate Investment Trusts |
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399 | (6) |
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The Growing Importance of Public Real Estate Markets |
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|
399 | (1) |
|
|
|
400 | (2) |
|
|
|
402 | (1) |
|
|
|
403 | (1) |
|
REIT Investment Performance |
|
|
404 | (1) |
|
|
|
405 | (4) |
|
part 5 INVESTMENT VALUATION |
|
|
409 | (58) |
|
Valuing Investment Opportunities |
|
|
410 | (30) |
|
|
|
410 | (1) |
|
Investment Valuation versus Market Valuation |
|
|
411 | (1) |
|
Investment Value Calculation |
|
|
412 | (3) |
|
Centre Point Office Building Example |
|
|
412 | (2) |
|
Treatment of Capital Expenditures |
|
|
414 | (1) |
|
Evaluating the Cash Flow Estimates |
|
|
415 | (1) |
|
Effects of Debt Financing on Pro Forma Cash Flows |
|
|
416 | (5) |
|
|
|
416 | (1) |
|
Effect on Initial Investment |
|
|
417 | (1) |
|
Effect on Cash Flows from Operations |
|
|
418 | (1) |
|
Effect on Cash Flows from Sale |
|
|
419 | (1) |
|
More Detailed Cash Flow Projections |
|
|
419 | (2) |
|
Investment Valuation Using Discounted Cash Flow Models |
|
|
421 | (4) |
|
|
|
421 | (1) |
|
|
|
422 | (1) |
|
Comparing Net Present Value and the Internal Rate of Return |
|
|
423 | (1) |
|
Effects of Debt on Return and Risk |
|
|
424 | (1) |
|
Partnerships and Other Direct Forms of Ownership |
|
|
425 | (1) |
|
|
|
426 | (3) |
|
|
|
428 | (1) |
|
Effects on Net Present Value and the Internal Rate of Return |
|
|
428 | (1) |
|
Other Investment Criteria |
|
|
429 | (5) |
|
|
|
429 | (2) |
|
|
|
431 | (1) |
|
|
|
432 | (2) |
|
Limitations of Ratio Analyses |
|
|
434 | (1) |
|
|
|
434 | (1) |
|
|
|
435 | (5) |
|
Enhancing Value through Ongoing Management |
|
|
440 | (27) |
|
|
|
441 | (1) |
|
|
|
442 | (1) |
|
Functions of a Property Manager |
|
|
442 | (9) |
|
|
|
442 | (2) |
|
|
|
444 | (1) |
|
|
|
445 | (2) |
|
|
|
447 | (1) |
|
Complying with Landlord-Tenant Laws |
|
|
448 | (1) |
|
Maintaining Tenant Relations |
|
|
448 | (1) |
|
Communicating with Owners |
|
|
448 | (1) |
|
Repairing and Maintaining the Premises |
|
|
449 | (2) |
|
Property Management Agreements |
|
|
451 | (3) |
|
|
|
453 | (1) |
|
Professional Associations and Designations |
|
|
454 | (1) |
|
|
|
455 | (5) |
|
The Development of a Profession |
|
|
456 | (1) |
|
Asset Management Functions |
|
|
456 | (1) |
|
Performance Evaluation and Compensation |
|
|
457 | (1) |
|
A Closer Look at the Decision to Improve or Alter a Property |
|
|
458 | (2) |
|
|
|
460 | (1) |
|
Managing Corporate Real Estate Assets |
|
|
460 | (4) |
|
|
|
464 | (3) |
|
part 6 ACQUIRING AND DISPOSING OF OWNERSHIP INTERESTS |
|
|
467 | (86) |
|
Conveying Real Property Interests |
|
|
468 | (23) |
|
|
|
468 | (1) |
|
|
|
469 | (5) |
|
|
|
469 | (3) |
|
|
|
472 | (2) |
|
Modes of Conveyance of Real Property |
|
|
474 | (3) |
|
Voluntary Conveyance by a Deed |
|
|
474 | (1) |
|
Involuntary Conveyance by a Deed |
|
|
474 | (1) |
|
Voluntary Conveyance without a Deed |
|
|
475 | (1) |
|
Involuntary Conveyance without a Deed |
|
|
476 | (1) |
|
Real Property Complexity and Public Records |
|
|
477 | (4) |
|
The Doctrine of Constructive Notice |
|
|
477 | (1) |
|
|
|
477 | (1) |
|
|
|
477 | (1) |
|
|
|
478 | (1) |
|
|
|
478 | (1) |
|
Title Search, Title Abstract, and Chain of Title |
|
|
478 | (1) |
|
|
|
479 | (2) |
|
|
|
481 | (5) |
|
|
|
481 | (2) |
|
Subdivision Plat Lot and Block Number |
|
|
483 | (1) |
|
Government Rectangular Survey |
|
|
483 | (3) |
|
|
|
486 | (5) |
|
Real Estate Brokerage and Listing Contracts |
|
|
491 | (31) |
|
Introduction: Brokerage---The Best-Known Type of Real Estate Business |
|
|
491 | (3) |
|
Real Estate Brokers as Market Facilitators |
|
|
492 | (1) |
|
Economic Rationale for Employing a Broker |
|
|
493 | (1) |
|
|
|
494 | (5) |
|
|
|
494 | (1) |
|
Fiduciary Responsibilities |
|
|
495 | (1) |
|
|
|
495 | (2) |
|
Problems in Real Estate Agency Relationships and Disclosures |
|
|
497 | (2) |
|
|
|
499 | (1) |
|
Licensing of Real Estate Brokers and Salespersons |
|
|
499 | (3) |
|
Brokerage Licensing Administration |
|
|
500 | (1) |
|
How to Obtain a Real Estate License |
|
|
501 | (1) |
|
|
|
501 | (1) |
|
Certification of Real Estate Occupations |
|
|
502 | (1) |
|
|
|
502 | (6) |
|
Market Segmentation and Specialization and Service |
|
|
502 | (1) |
|
|
|
503 | (1) |
|
|
|
503 | (4) |
|
International Aspects of Brokerage |
|
|
507 | (1) |
|
|
|
508 | (1) |
|
Types of Listing Contracts |
|
|
508 | (3) |
|
|
|
509 | (1) |
|
|
|
509 | (1) |
|
Exclusive Right of Sale Listing |
|
|
510 | (1) |
|
|
|
510 | (1) |
|
Listing Contract Provisions |
|
|
511 | (1) |
|
Termination of a Listing Contract |
|
|
511 | (1) |
|
|
|
511 | (1) |
|
A Listing Situation---Example |
|
|
512 | (6) |
|
|
|
518 | (4) |
|
Contracts for Sale and Closing |
|
|
522 | (31) |
|
Introduction: The Most Important Document in Real Estate |
|
|
522 | (1) |
|
Rights and Obligations of Sellers and Buyers |
|
|
523 | (1) |
|
Requirements of a Contract for Sale |
|
|
523 | (3) |
|
Competency of the Parties to Act |
|
|
524 | (1) |
|
Lawful Intent of the Parties |
|
|
524 | (1) |
|
An Offer and an Acceptance |
|
|
524 | (1) |
|
|
|
525 | (1) |
|
No Defects to Mutual Assent |
|
|
525 | (1) |
|
A Written Real Estate Contract |
|
|
525 | (1) |
|
Proper Description of the Property |
|
|
526 | (1) |
|
Legal Title versus Equitable Title |
|
|
526 | (1) |
|
The Form of the Contract for Sale |
|
|
526 | (10) |
|
|
|
527 | (1) |
|
|
|
527 | (2) |
|
Components of a Form Contract |
|
|
529 | (7) |
|
Contracts with Contingencies |
|
|
536 | (1) |
|
|
|
536 | (1) |
|
Remedies for Nonperformance |
|
|
537 | (1) |
|
|
|
537 | (1) |
|
The Closing and Closing Statements |
|
|
537 | (5) |
|
|
|
537 | (1) |
|
|
|
537 | (1) |
|
Real Estate Settlement Procedures Act |
|
|
538 | (1) |
|
Preparation of Closing Statements |
|
|
539 | (3) |
|
The Continuing Story of a Sale |
|
|
542 | (7) |
|
Good Faith Estimate of Closing Costs |
|
|
542 | (2) |
|
|
|
544 | (4) |
|
|
|
548 | (1) |
|
|
|
549 | (4) |
|
|
|
553 | (118) |
|
Leases and Property Types |
|
|
555 | (27) |
|
|
|
555 | (1) |
|
Essential Elements of a Lease |
|
|
556 | (1) |
|
Negotiated Lease Provisions |
|
|
556 | (8) |
|
|
|
557 | (1) |
|
|
|
557 | (1) |
|
|
|
558 | (1) |
|
Responsibility for Operating Expenses |
|
|
559 | (2) |
|
|
|
561 | (1) |
|
Alternations and Improvements |
|
|
561 | (1) |
|
Assignments and Subletting |
|
|
562 | (1) |
|
|
|
562 | (2) |
|
|
|
564 | (1) |
|
|
|
564 | (3) |
|
Broader Lease Considerations |
|
|
566 | (1) |
|
Residential Rental Properties and Leases |
|
|
567 | (2) |
|
Common Lease Provisions of Residential Rental Properties |
|
|
568 | (1) |
|
Office Properties and Leases |
|
|
569 | (3) |
|
Defining Rentable Space in Office Properties |
|
|
570 | (1) |
|
|
|
571 | (1) |
|
Retail Properties and Leases |
|
|
572 | (3) |
|
Defining Leasable Area in Rental Properties |
|
|
573 | (1) |
|
Common Lease Provisions of Rental Properties |
|
|
573 | (2) |
|
Industrial Properties and Leases |
|
|
575 | (2) |
|
Common Lease Provisions of Industrial Properties |
|
|
576 | (1) |
|
|
|
577 | (1) |
|
|
|
577 | (5) |
|
Income Taxation and Value |
|
|
582 | (32) |
|
|
|
582 | (1) |
|
Objectives and Implementation of United States Tax Law |
|
|
583 | (1) |
|
Comparing the Taxation of Individuals and Corporations |
|
|
583 | (1) |
|
Four Classes of Real Property |
|
|
583 | (1) |
|
Income Subject to Taxation |
|
|
584 | (2) |
|
|
|
586 | (1) |
|
Estimating Taxable Income from Operations |
|
|
587 | (10) |
|
Cash Calculation versus Tax Calculation |
|
|
588 | (1) |
|
Operating Expenses versus Capital Improvements |
|
|
588 | (1) |
|
Costs of Mortgage Financing |
|
|
589 | (1) |
|
|
|
589 | (5) |
|
|
|
594 | (1) |
|
Centre Point Office Building: Taxes from Operations |
|
|
595 | (1) |
|
|
|
596 | (1) |
|
Estimating Taxable Income from Sale |
|
|
597 | (9) |
|
|
|
597 | (5) |
|
Centre Point Office Building: Taxes Due on Sale |
|
|
602 | (2) |
|
Net Benefits of Tax Depreciation |
|
|
604 | (1) |
|
Effect of Taxes on Values and Returns |
|
|
604 | (2) |
|
Complications Caused by Alternative Ownership Forms |
|
|
606 | (1) |
|
Methods of Deferring Taxes on Disposition |
|
|
606 | (1) |
|
|
|
606 | (1) |
|
|
|
607 | (1) |
|
Tax Factors Affecting Homeowners |
|
|
607 | (1) |
|
|
|
608 | (6) |
|
Risk Management in a Portfolio Context |
|
|
614 | (31) |
|
|
|
614 | (1) |
|
|
|
615 | (3) |
|
Microeconomic Risk Factors |
|
|
617 | (1) |
|
Macroeconomic Risk Factors |
|
|
617 | (1) |
|
The Concept of Variability |
|
|
618 | (2) |
|
Specification of Risk Preferences |
|
|
620 | (2) |
|
Measuring Project-Specific Risk |
|
|
622 | (2) |
|
Variance and Standard Deviation |
|
|
622 | (2) |
|
|
|
624 | (1) |
|
The Use of Subjective Probabilities |
|
|
624 | (1) |
|
|
|
624 | (3) |
|
|
|
625 | (1) |
|
|
|
625 | (1) |
|
|
|
625 | (1) |
|
Diversification as a Risk-Management Tool |
|
|
626 | (1) |
|
The Portfolio Concept of Risk |
|
|
627 | (4) |
|
Diversifiable Portfolio Risk |
|
|
627 | (1) |
|
Covariance and Correlation |
|
|
628 | (1) |
|
Examples of Diversifiable Risk |
|
|
629 | (1) |
|
Basic Real Estate Diversification Strategies |
|
|
630 | (1) |
|
|
|
631 | (1) |
|
Constructing an Efficient Portfolio |
|
|
631 | (2) |
|
Why Are So Many Investors Not Well Diversified? |
|
|
631 | (2) |
|
How Risky Is Real Estate? |
|
|
633 | (4) |
|
Appraisal-Based Index of Unsecured Returns |
|
|
633 | (1) |
|
REIT-Based Index of Securitized Returns |
|
|
634 | (1) |
|
Historical Returns, Risk, and Correlations |
|
|
634 | (3) |
|
Risk-Adjusted Discount Rate |
|
|
637 | (3) |
|
Quantifying Required Risk Premiums with Asset-Pricing Models |
|
|
638 | (2) |
|
|
|
640 | (5) |
|
Development: The Dynamics of Creating Value |
|
|
645 | (26) |
|
|
|
645 | (1) |
|
The Process of Development |
|
|
646 | (17) |
|
Establishing Site Control |
|
|
647 | (1) |
|
Feasibility Analysis, Refinement, and Testing |
|
|
648 | (1) |
|
|
|
649 | (4) |
|
|
|
653 | (2) |
|
|
|
655 | (3) |
|
|
|
658 | (2) |
|
|
|
660 | (2) |
|
|
|
662 | (1) |
|
The ``Numbers'' of Development |
|
|
663 | (2) |
|
What Is It Like to Be a Developer? |
|
|
665 | (2) |
|
What Does It Take to Enter Development? |
|
|
667 | (1) |
|
|
|
668 | (3) |
| Glossary |
|
671 | (15) |
| Photo Credits |
|
686 | (2) |
| Index |
|
688 | |
