Entry into the Real Estate Game: A Series of Unfortunate Events

Author
David Rodriguez, Henderson State University
Region
North America
Topic
Accounting & Finance
Length
11 pages
Keywords
finance
capital budgeting
real estate
relevant cash flows
Copyright Holder
Society for Case Research
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students

Paul Black had recently completed his MBA and was looking to start a real estate investing portfolio.  After he found a seemingly great first deal and closed on it, he was faced with several challenges because of a changing landscape.  Paul was forced to evaluate the project at multiple junctures to gauge its profitability and ultimately determine if he needed to cut his losses and move on.

Learning Outcomes
  1. Evaluate alternatives in real estate projects in a changing landscape.
  2. Evaluate the relevancy of cash flows in real estate investments.
  3. Evaluate the cost of capital for real estate investments.