1、Chapter 8 Real Estate Finance8.1Why Invest in Real Estate?Diversification and ProtectionInflation HedgingThe Power of LeverageThe Drawback of Real Estate Investing:IlliquidityReal estate can enhance the risk and return profile of an investors portfolio,offering competitive risk-adjusted returns.Usua
2、lly,the real estate market is one of low volatility especially compared to equities and bonds.房地产提供有竞争力的风险调整回报，房地产市场是一个低波动性的市场Diversification and Protection（多元化和保护）Real estate has a low,and in some cases,negative,correlation with other major asset classes meaning,when stocks are down,real estate is
3、often up.房地产与其他主要资产类别的关联程度很低Inflation Hedging（通胀保值）The inflation-hedging capability of real estate stems from the positive relationship between GDP growth and demand for real estate.通胀保值能力源于 GDP增长与房地产需求之间的正相关关系The Power of Leverage（杠杆的力量）Most conventional mortgages require a 20%down payment.This mea
4、ns that you can control the whole property and the equity it holds by only paying a fraction of the total value.支付总价值的一小部分就可以控制整个房产The Drawback of Real Estate Investing:Illiquidity（流动性差）A real estate transaction can take months to close.房地产交易可能需要数月完成8.2Individual Ways of Real Estate InvestingBasic R
5、ental PropertiesReal Estate TradingBasic Rental Properties（基础租赁房产）A person will buy a property and rent it out to a tenant.The owner,the landlord,is responsible for paying the mortgage,taxes and maintenance of the property.个人买房产租给租客，房东负责支付抵押贷款款项和税收，维护房产Real Estate Trading（房地产交易的炒作）Real estate trader
6、s buy properties with the intention of holding them for a short period,often no more than three to four months,whereupon they hope to sell them for a profit.This technique is also called flipping（炒房）and is based on buying properties that are either significantly undervalued or are in a very hot area
7、.短期持有房产，不超过3-4个月，卖掉获利8.3 Institutional Ways of Real Estate Investing Real Estate Investment GroupsReal Estate Limited PartnershipsReal Estate Investment Trust Real Estate Mutual FundsReal Estate Investment Groups（房地产投资集团）A company will buy or build a set of buildings,often apartments,and then allow
8、investors to buy them through the company,thus joining the group.A single investor can own one or multiple units of self-contained living space,but the company operating the investment group collectively manages all the units,taking care of maintenance,advertising vacant units and interviewing tenan
9、ts.购买或建造一系列建筑，允许投资者通过该公司购买加入，公司集体管理所有单元，负责维护等Real Estate Limited Partnerships（房地产有限合伙企业）A real estate limited partnership(RELP)is similar to a real estate investment group:It is an entity formed to purchase and hold a portfolio of properties,or sometimes just one property only it is in existence for
10、 a finite number of years.An experienced property manager or real estate development firm serves as the general partner.Outside investors are then sought to provide financing for the real estate project,in exchange for a share of ownership as limited partners.有经验的物业经理或房地产开发公司担任一般合伙人，融资方为有限合伙人，购买和持有一
11、个房地产投资组合，或者一个房地产Real Estate Investment Trust(房地产投资信托基金）A real estate investment trust(REIT)is created when a corporation(or trust)is formed to use investors money to purchase,operate and sell income-producing properties.REITs are bought and sold on the major exchanges,just like any other stock.房地产投资
12、证券化，房地产成为公开交易工具Real Estate Mutual Funds（房地产共同基金）Real estate mutual funds invest primarily in REITs and real estate operating companies.They provide the ability to gain diversified exposure to real estate with a relatively small amount of capital.房地产共同基金提供了用相对较少的资本获得多样化房地产投资的能力8.4Commercial Real Esta
13、teWhat Is Commercial Real EstateLease LowdownCommercial Real Estate ClassificationsCommercial Real Estate FirmsWhat Is Commercial Real EstateCommercial real estate is property that is used exclusively for business purposes and that is leased out to provide a workspace rather than a living space.商业房地
14、产专门用于商业目的，出租用途是工作场所而非生活空间。Lease Lowdown（租赁的实际情况）Leases can run from one year to 10 years or more,with office and retail space typically averaging from 5 to 10 years.There are four primary types of commercial property leases,each requiring different levels of responsibility from the landlord and the
15、tenant.First,a single-net lease makes the tenant responsible for paying property taxes.Second,a double-net(NN)lease makes the tenant responsible for paying property taxes and insurance.Third,a triple-net(NNN)lease makes the tenant responsible for paying property taxes,insurance and maintenance.And f
16、ourth,under a gross lease,the tenant pays only rent,and the landlord pays for the buildings property taxes,insurance and maintenance.租赁期限1-10年或更长，三重净租赁由租户承担房产税、保险和维护费用。Commercial Real Estate Classifications（商业房地产分类）Commercial real estate is categorized into different classes.Office space,for example
17、,is divided into one of three classes:class A,class B or class C.Class A represents the best buildings in terms of aesthetics,age,quality of infrastructure and location.Class B buildings are usually older and not as competitive price-wise as Class A buildings.These buildings are often targeted by in
18、vestors for restoration.Class C buildings are the oldest,usually over 20 years of age,located in less attractive areas and in need of maintenance.比如办公场所的不同类别代表着美学、年代、基础设施质量和位置的不同选择Commercial Real Estate Firms（商业房地产企业）A commercial real estate firm advises on how to best negotiate lease agreements tha
19、t will attract and keep tenants,a useful service for property owners who need to strike a balance between maximizing rents and minimizing vacancies and tenant turnover.Turnover can be costly for owners because a space must be adapted to meet the specific needs of different tenants say,if a restauran
20、t is moving into a property once occupied by a yoga studio.帮助业主平衡最大化租金和最小化空置率以及住户周转率8.5Commercial Real Estate InvestingInvesting in Commercial Real EstateAdvantages to Commercial Real EstateDisadvantages to Commercial Real EstateWho Should Invest in Commercial Real Estate?Investing in Commercial Rea
21、l EstateInvesting in commercial real estate can be lucrative and serve as a good hedge against the volatility of the stock market.Investors can make money via appreciation when they sell,but most returns are generated through rents collected from tenants.投资商业房地产可以对冲股市波动，投资者在出售时通过升值获利，向租户收取租金Advantag
22、es to Commercial Real EstateOne of the biggest advantages of commercial real estate is the attractive leasing rates.In areas where the amount of new construction is limited by either land or law,commercial real estate can have impressive returns and considerable monthly cash flow.Industrial building
23、s generally rent at a lower rate,though they also have lower overhead costs compared to an office tower.Commercial real estate also benefits from comparably longer lease contracts with tenants than residential real estate.This gives the commercial real estate holder a considerable amount of cash flo
24、w stability,as long as the building is occupied by long-term tenants.商业房地产最大的优势之一是租赁费率有吸引力，并且商业房地产也从与租户签订的较长租赁合同中收益。Disadvantages to Commercial Real EstateRules and regulations are the primary deterrent for most people wanting to invest in commercial real estate.The taxes,mechanics of purchase and m
25、aintenance responsibilities for commercial properties are buried in layers of legalese that shift according to state,county,industry,size,zoning and many other designations.Another hurdle is the increased risk brought with tenant turnover,especially relevant in todays market,when unexpected retail c
26、losures have left properties vacant with little notice in advance.With a commercial property,each tenant may have very different needs that require costly refurbishing.The building owner then has to adapt the space to accommodate each tenants specialized trade.规章制度，租户更替风险，耗费成本翻新Who Should Invest in
27、Commercial Real Estate?Those who have a business,for starters.Aside from that,people best suited for investing in commercial real estate are those who either have a considerable amount of knowledge about the industry and its legal,financial and regulatory aspects,or can employ people who do.生意初创者，对商
28、业房地产行业及法律、金融和监管方面有相当多了解的人，能雇佣相关人员的人8.6Hot Commercial Real EstateHow do we evaluate the best propertiesLearn what the insiders know（了解内部人员知道什么）To be a player in commercial real estate,learn to think like a professional.像专业人员人员一样思考，分析房地产的价值和收益Map out a plan of action（制定行动计划）Setting parameters is a top
29、 priority in a commercial real estate deal.For example,ask yourself how much you can afford to pay and then shop around for mortgages to get a sense of how much you will pay over the life of the mortgage.Using tools like mortgage calculators can help you develop good estimates of the total cost of y
30、our home.了解贷款额度、还款期限、还款能力等，估计房子总成本How do we evaluate the best properties?Get familiar with key commercial real estate metrics（熟悉关键的商业房地产指标）The common key metrics to use for when assessing real estate include net operating income(NOI),cap rate,and cash on cash.净经营收益、资本化率、现金投资回报率Look for motivated sel
31、lers（寻找积极的买家）This is someone with a pressing reason to sell below market value.If your seller isnt motivated,he or she wont be as willing to negotiate.Your job is to find them-specifically those who are ready and eager to sell below market value.寻找渴望以低于市场价值的价格出售的人How do we evaluate the best properti
32、es?8.7Commercial Real Estate LoansWhat Is Commercial Real EstateCommercial Real Estate Loans vs.Residential MortgagesCommercial real estate(CRE)is income-producing property that is used solely for business(rather than residential)purposes.Mortgages secured by liens on the commercial property.Banks a
33、nd independent lenders are actively involved in making loans on commercial real estate.Also,insurance companies,pension funds,private investors and other sources provide capital for commercial real estate.商业房地产是一种可产生收入的财产，仅用于商业目的Commercial Real EstateResidential Mortgages typically made to individua
34、l borrowers a type of amortized loan in which the debt is repaid in regular installments over a period of time,including 25-year and 15-year mortgages.amortized over the life of the loan so that the loan is fully repaid at the end of the loan termCommercial Real Estate Loans often made to business e
35、ntities(e.g.,corporations,developers,limited partnerships,funds,and trusts)the terms of commercial loans typically range from 5 years(or less)to 20 years,and the amortization period is often longer than the term of the loan8.8 Details on commercial real estate loans Loan-to-Value RatiosDebt-Service
36、Coverage RatioInterest rates and feesPrepaymentMortgageLoan-to-Value Ratios（贷款价值比）A figure that measures the value of a loan against the value of the property.A lender calculates LTV by dividing the amount of the loan by the lesser of the propertys appraised value or its purchase price.For both comm
37、ercial and residential loans,borrowers with lower LTVs will qualify for more favorable financing rates than those with higher LTVs.LTV=贷款总额/房地产估价或购买价中的较低者LVT较低的借款人有资格获得更优惠的融资利率Debt-Service Coverage Ratio（债务清偿覆盖概率）Commercial lenders also look at the debt-service coverage ratio(DSCR),which compares a
38、propertys annual net operating income(NOI)to its annual mortgage debt service(including principal and interest),measuring the propertys ability to service its debt.It is calculated by dividing the NOI by the annual debt service.DSCR=NOI/年度抵押债务服务（包括本金和利息）Interest rates and fees（利率和费用）Interest rates o
39、n commercial loans are generally higher than on residential loans.Also,commercial real estate loans usually involve fees that add to the overall cost of the loan,including appraisal,legal,loan application,loan origination and/or survey fees.Some costs must be paid up front before the loan is approve
40、d(or rejected),while others apply annually.商业房产贷款利率通常高于住宅贷款Prepayment（提前还款）A commercial real estate loan may have restrictions on prepayment,designed to preserve the lenders anticipated yield on a loan.If the investors settle the debt before the loans maturity date,they will likely have to pay prepa
41、yment penalties.提前还款罚金Mortgage（抵押贷款）A mortgage is a debt instrument,secured by the collateral of specified real estate property,that the borrower is obliged to pay back with a predetermined set of payments.Mortgages are also known as“liens against property”or“claims on property.”If the borrower stop
42、s paying the mortgage,the bank can foreclose.“对财产的留置权”、“对财产的索取权”8.9 Main Types of Mortgage Lenders Mortgage lenders（抵押贷款人）Retail lenders（零售贷款机构）Direct lenders（直接贷款机构）Portfolio lenders（组合贷款机构）Wholesale lenders（批发贷款机构）Correspondent lenders（代理贷款机构）Warehouse lenders（仓储贷款机构）8.10 What Is a Reverse Mortgag
43、e?A reverse mortgage is a loan.In U.S.,a homeowner who is 62 or older and has considerable home equity can borrow against the value of their home and receive funds as a lump sum,fixed monthly payment or line of credit.Unlike a forward mortgage the type used to buy a home a reverse mortgage doesnt re
44、quire the homeowner to make any loan payments.Instead,the entire loan balance becomes due and payable when the borrower dies,moves away permanently or sells the home.Federal regulations require lenders to structure the transaction so the loan amount doesnt exceed the homes value and the borrower or
45、borrowers estate wont be held responsible for paying the difference if the loan balance does become larger than the homes value.One way this could happen is through a drop in the homes market value;another is if the borrower lives a long time.Reverse mortgages can provide much-needed cash for seniors whose net worth is mostly tied up in the value of their home.On the other hand,these loans can be costly and complex as well as subject to scams.反向抵押贷款可以为老年人提供急需的现金，他们的净资产大多与房屋价值挂钩
