The Complete Guide to REAL ESTATE FINANCE for INVESTMENT PROPERTIES	3
	CONTENTS	9
	Part 1 Real Estate Finance	15
	Chapter 1 Introduction to Real Estate Finance	17
	Finance as a Discipline	20
	The Relevance of Finance as It Applies to Value	23
	Chapter 2 Primary Investment Elements and Their Effect on Financing Strategies	27
	Time Horizon	27
	Volume of Investment Activity	32
	Type of Property	35
	Chapter 3 Secondary Investment Elements and Their Effect on Financing Strategies	41
	Cost of Funds	42
	Amortization Period	45
	Amount of Funds Borrowed	49
	Chapter 4 Additional Investment Elements and Their Effect on Financing Strategies	57
	Loan Duration	57
	Loan Fees	60
	Prepayment Penalties	68
	Chapter 5 Structuring Financial Instruments	75
	Leverage	75
	Debt	78
	Equity	81
	Partnerships	83
	Blended Financing and the Weighted Average Cost of Capital	86
	Options	90
	Chapter 6 Real Estate Investment Performance Measurements and Ratios	95
	Net Income Return on Investment	98
	Cash Return on Investment	99
	Total Return on Investment	100
	Net Operating Income	101
	Capitalization Ratio	103
	Debt Service Coverage Ratio	106
	Operating Efficiency Ratio	107
	Gross Rent Multiplier	112
	Operating Ratio	113
	Break-Even Ratio	114
	Chapter 7 Advanced Real Estate Investment Analysis	117
	Future Value Analysis	117
	Present Value Analysis	122
	Net Present Value Analysis	125
	Internal Rate of Return	127
	Chapter 8 The Valuation of Real Property	135
	Appraisal Defined	135
	The Nature of Price and Value	136
	Three Primary Appraisal Methods	137
	Replacement Cost Method	137
	Sales Comparison Method	140
	Income Capitalization Method	142
	Chapter 9 Financial Statements and Schedules	147
	Income Statement	150
	Balance Statement	157
	Statement of Cash Flows	162
	Part 2 Case Study Review: Practical Application of Valuation Analysis	167
	Chapter 10 Case Study 1: Single-Family Rental House	169
	Test 1: Comparable Sales Analysis	171
	Test 2: Cash Flow Analysis	176
	Chapter 11 Case Study 2: Single-Family to Multifamily Conversion	189
	Exploring Alternative Possibilities	189
	The Relationship between Risk and Reward	194
	Chapter 12 Case Study 3: Multifamily Apartment Complex	203
	Chapter 13 Case Study 4: Single-Family Conversion to Commercial Office Building	217
	Part 3 Epilogue and Appendixes	243
	Chapter 14 Epilogue: Destined for Greatness	245
	Prior Works	245
	Destined for Greatness	247
	Appendix A www.thevalueplay.com	257
	Appendix B www.symphony-homes.com	259
	Glossary	261
	Index	283