Reader's Manual
Part One addresses economic and financial issues common to any real estate finance. Chapter 1 [Introduction to Property Financing] offers an overview of structured financing, highlighting the differences between corporate finance (where the lender's object of analysis is a legal entity) and project finance (which focuses on cash flows and also the manner in which the banks procure the capital used for lending). Chapter 2 [Structured Real Estate Financing] is dedicated to bank loans to the real estate sector, while Chapter 3 includes a detailed discussion [Loan Agreement] of the structure of a bank finance agreement along with its principal clauses. Again adopting a highly practical approach, Chapter 4 [Loan Repayment, Interest and Renegotiation] addresses the manner in which interest is charged. A broad overview of the capital repayment plan as well as the possibility to renegotiate the terms where difficulties are encountered in repayment are also dealt with. Chapter 5 [Effects of Financial Leverage on Real Estate Investments] provides a further discussion of financial models and outlines, by means of examples, the mechanics of financial leverage and the consequences associated with various levels of investment risks. To enable a better understanding of the contractual and financial dynamics of real estate finance, examples of typical real estate operations which analyse the term sheets of the relative loan agreements and construct models for assessing their financial ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access