Real Estate

What you'll learn

• ✓Compare direct ownership vs REITs
• ✓Understand cap rates and LTV

Lessons

1. 🏘️
   A Flat That Pays You Rent

   Real estate as an asset, not a home
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2. Direct Ownership vs REITs

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3. Residential, Commercial, Industrial

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4. Cap Rates: The Real Estate Yield

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5. The Leverage Trap

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6. Final Boss: Read a Deal

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Sources

All content is drawn from the sources below. We deliberately avoid unverified material.

• REIT Industry Primer and Tax Rules
  Nareit (National Association of Real Estate Investment Trusts) · institutional
  Backs the REIT structure, the 90 percent distribution rule, and segment classifications used in lessons 2 and 3.
  https://www.reit.com/what-reit
• Real Estate Investment Trusts (REITs)
  US Internal Revenue Service · institutional
  Confirms the 90 percent distribution requirement and REIT qualification tests under Internal Revenue Code section 856.
  https://www.irs.gov/instructions/i1120rei
• Real Estate Finance and Investments (Brueggeman and Fisher)
  McGraw-Hill · book
  Reference textbook for cap rate definition, NOI calculation, and income property valuation used in lesson 4.
• S&P CoreLogic Case-Shiller Home Price Indices Methodology
  S&P Dow Jones Indices · institutional
  Methodology and historical data behind the roughly 27 percent peak-to-trough US home price drop cited in lesson 5.
  https://www.spglobal.com/spdji/en/indices/real-estate/sp-corelogic-case-shiller-us-national-home-price-nsa-index/
• The Subprime Mortgage Crisis (Federal Reserve History)
  Federal Reserve Bank of St. Louis / Federal Reserve History · institutional
  Backs claims about high-LTV originations and the scale of underwater mortgages in 2008-2012.
  https://www.federalreservehistory.org/essays/subprime-mortgage-crisis
• Irrational Exuberance, Robert J. Shiller (2nd ed., housing chapter)
  Princeton University Press · book
  Long-run real US home price data showing roughly flat real prices from 1890 to mid-1990s; basis for the 'real estate always goes up' myth-bust in lessons 5 and 6.
• Industrial Real Estate and the E-commerce Boom
  Nareit Research · institutional
  Sector commentary supporting the post-2020 industrial real estate growth claim in lesson 3.
  https://www.reit.com/data-research/research/nareit-research