HBA 433 - Seminar in Finance Fall 2025

  OCTOBER 28, 2025 Class 17: Comparable Sales & Regression Analysis Building comparable sets and regression models.  Example: Regression predicts $/SF from lot size and year built.   Potential SFR Deal:   878 Braemar Ave SW Atlanta, GA 30311 Would we try to buy it? How much money do we need? How much would it cost to buy? Once we buy it, what are our options? Renovate it? Once Renovated, add on? Build New

  Class 11: Leases & Valuation Impact Lease structures (NNN, Gross). Example: NNN lease shifts expense risk to the tenant. Class 12: Development & Residual Land Value Definitions: Hard costs, soft costs, residual land method. Example: Land worth $2M if stabilized value is $20M with  $15M costs.

Class 9: Discounted Cash Flow Modeling Pro forma DCF with unlevered vs. levered IRR. Example: Office building exit at 6.5% cap after 5 years. Class 10: Sensitivity & Scenario Testing Stress testing assumptions. Example: Vacancy up 5% reduces IRR from 14% to 10%. 

  Class 7 : Mortgage Math I: Amortization Definitions: principal, Interest-only, DSCR. Example: $5M loan, 30-year amortization, 6% interest.   Debt sizing based on DSCR/LTV. Example: Maximum loan on $1M NOI with 1.25 DSCR at 6% rate. Class 8: Direct Capitalization & Multipliers Definitions: cap rate, gross rent multiplier. Example: NOI of $500k / 6% cap = $8.3M value. ---------------------------------------------------------------------------------------------------------------- GIVE BACK ESPN ___________________________________________________________________________________________________________ MORTGAGES PV - Amount of Mortgage Rate - Int Rate on Mortgage Time - period to payback FV - Zero or lump sum OTHER IMPORTANT INDICATORS Gross Rents Multiplier:    Value/Periodic Return Capitalization Rates:  Income/Rate = Value    or Income/Value = Rate Future Appreciation Value based on future Income