15.427  Real Estate Capital Markets (H1)

Real Estate Capital Markets class is optional both Tuesday and Thursday this week (Mar.18,20). However, I do strongly urge students to attend on Thursday (see location info and directions on the Forum, post at bottom in top level, not in any Module). It should be a very interesting discussion with people your age working "in the trenches" of some cutting-edge innovative real estate finance issues (and it should be fun to see the start-up space at the CIC).

In class on Tuesday March 18, I will present a lecture following up on Brad Case's presentation last Tuesday, about real estate price indexing and derivatives. I will also extend this topic into the question of property pricing dynamics and quantifying relevant uncertainty, including a brief "preview" of the focus of the 11.434/15.428/ESD.712 "Tools for Analysis" elective class that will begin after spring break (in particular, simulating real estate uncertainty using Monte Carlo modeling in Excel). Honestly, it will be a class for the "geeks" among you, so, come if you're so inclined, otherwise feel free to use your time doing whatever poetic pleasures you wish to pursue (LOL). (Hey, for some of you it may be your last chance to see the old prof in action using his too-densely-filled PPT slides... We can use the recitation period for a Liquidity Seminar. What could be more nostalgic?...)

I have posted onto the Forum directions and instructions for getting to class on Thur Mar.20. We will strive to start at or close to the usual 2:35 starting time. The class will be held in Cambridge Innovaiton Center (CIC) space in Kendall Square. Note that you will need proof of ID as indicated in the instructions (& map) here from John McDonald. We will have two presentations in the class, both by former MSRED students from the CRE Class of 2013. Morgan Pierson will present based on his thesis (supervised by Prof Torous) about single-family house lease backed securitization. John McDonald & Bonnie Burgett will present about the new real estate investment and development crowdfunding business and their start-up company that has grown out of their thesis (also supervised by Prof Torous). After class students are welcome to stay in the CIC for the weekly "Venture Cafe".

I will take the questions for the exam from the End of Chapter Study Questions in the book, from Chapters 20,21,22,23, and section 12.3 (only) of Chapter 12, and sections 26.2.2 & 26.3 (only) of Chapter 26. (Brad Case's discussion in recitation Mar.11 will relate to section 26.3.) Note that answers to the odd-numbered EOC Study Questions are provided in the book (on the CD). My only other source for exam questions will be that I will draw at least one question (probably only one) from the Forum posts. (Of course, Forum questions also are answered, more or less, on the Forum.) The student whose Forum question gets picked will receive a token of my appreciation as noted in class today.

Good luck and have fun studying. (Main purpose of the exam is for you to have fun studying...)