Students will understand the importance and role of real estate in local and national economies. Students will be able to identify key driving forces of the real estate market. Students will be able to analyze real estate investment cash flows and make real estate investment decisions based on net present value or the internal rate of return. Students will understand and be able to analyze mortgage contracts taking the perspective as a borrower, a lender, and an investor. Students will be able to understand the basic trade-off in debt versus equity finance in real estate. Students will be able to understand the basics of securitization and be able to analyze simple mortgage-backed securitization deals.