Class 1: Introduction & Finance in Real Estate
Class 1: Introduction & Finance in Real Estate DOC LINK
Overview of the syllabus, course objectives, and how financial theory translates to real estate. Definitions: Alpha (excess return), Beta (systematic risk). Example: Comparing a stabilized apartment building’s return profile to market averages.
Overview of the syllabus
Course Information
Course Number: HBA 433
Course Title: Seminar in Finance
Term: Fall 2025
Meeting Times: Tuesday & Thursday, 1:00 pm–2:15 pm PM (75 minutes)
Location: Leadership Center, Room 342
Instructor: Oscar Sistrunk III, MBA, MAI ‘78
Office Hours: ROOM 318 Leadership Building (appointment or walk-in)
Tuesday, Wednesday & Thursday, 2:30 pm – 4:00 pm
Contact: Any other day or time by email osistrunk@gmail.com or text 404-509-0533
Course Description
Capstone seminar applying investment theory, financial modeling, and portfolio concepts using real estate as the asset. Students will build acquisition pro formas, model debt and equity waterfalls, analyze market/asset risk, review academic real estate finance papers, and present a full investment memo and model for a target property and portfolio. Also, the course will explore the use of AI and blockchain (crypto) and its impact on physical assets called Real World Assest (RAW) management.
Learning Objectives
1. Apply portfolio and performance evaluation to property portfolios (by region/type/vintage).
2. Conduct Macro–Market–Submarket–Asset (MMSA) analysis (an extension of EIC).
3. Build valuation models (Direct Cap, DCF, Residual Land, Development feasibility) in Excel.
4. Model mortgages, debt sizing, DSCR, LTV, duration/convexity on real estate debt.
5. Design and critique leasing strategy, capex plans, and hold-sell decisions.
6. Read academic research in real estate finance; communicate findings clearly.
7. Introduce the impact of AI, Blockchain and Python
Materials
1. Excel (or Google Sheets); Python optional (Anaconda/Colab)
2. Real estate data sources permitted by the Department
(e.g., public assessor/MLS, Netronline.com, CREXI, Zillow, Redfin.com, AI (ChatGBT paid version).
3. LMS for readings and submissions.
4. May have speakers from donors: Prologis, Hines, Dominium, RMR Group & CIM Group
Assessment (Grade Determination)
1. Attendance 20%
2. Homework 25%
3. Mid-term 20%
4. Final 25%
Total: 100%
Information Sources
1. Textbook (TBA)
2. ChatGCT 5.0 ($20.00 per month)
3. Written Articles
4. Videos
5. Install a crypto wallet (Free)
6. Speakers
How financial theory translates to real estate.
Financial theory provides the foundation for understanding:
1. risk,
2. return,
3. Value
4. capital structure.
Real estate, as an investment asset, applies these principles in practical ways—from property valuation to financing and portfolio diversification. Below is a structured explanation with real-world applications.
1. Time Value of Money (TVM)
2. Risk and Return Tradeoff
3. Capital Markets & Cost of Capital
4. Leverage
5. Portfolio Theory
6. Valuation Models
7. Behavioral Finance
8. Market Efficiency
Conclusion
Financial theory and real estate are deeply interconnected. Fundamental financial concepts, such as time value of money, risk-return tradeoffs, and leverage, are applied daily by real estate investors, appraisers, and developers. Real estate serves as a real-world laboratory where financial models intersect with tangible assets, shaping decisions in investment, valuation, and portfolio construction.
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