Why Real Estate?

LearnCRE.comReal Estate Finance 101

LearnCRE.com

Why Real Estate?

+ Real estate is valuable because of future cash flows

+ Both in-place and potential (“highest and best”) cash flows

+ Cash flows may be highly irregular

+ Cash flows may run over different time horizons

+ Cash flows may be uncertain

+ And, market information about pricing is usually noisy

+ All of this makes valuation difficult

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Where does it fit in?

+ Who are the players?

+ Asset Allocations in Institutions

+ Real estate - Public equities vs Private equity funds

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