Gerald D. Hines Associate Professor of Real Estate Finance
Jones Graduate School of Business
Rice University
6100 Main Street - MS 531
Houston, Texas 77005
p 713.348.6137
jefferson.duarte.CRE@gmail.com
Teaching
I was inspired by a presentation delivered by Professor Carl Wieman, a recipient of the 2001 Nobel Prize in Physics, advocating for the shift from traditional lectures to prioritizing active problem-solving. Subsequently, I embarked on the creation of online course materials designed to impart fundamental knowledge prior to classes, while using in-class time to foster students' problem-solving skills. The courses outlined below employ this flipped-learning model.
Real Estate Finance: Valuation
This course has two primary objectives. Firstly, it offers a comprehensive exploration of topics within the realm of real estate finance. Specifically, it delves into an in-depth examination of the Discounted Cash Flow (DCF) model as applied to real estate. The DCF model serves as the primary financial decision-making tool in the real estate industry, and we extensively utilize it throughout this course. Secondly, the course provides a succinct overview of fundamental concepts commonly employed in the real estate industry.
Real Estate Development: Feasibility Analysis
This course introduces students to real estate development. The course starts by defining real estate development, its risks, and the risk mitigation strategies that developers use. The course delves into the Predevelopment period which covers the period from first identification of the development site to the start of construction. The course describes how architectural design and financial analysis are used together to create a development plan with the best use for a site given the market, financial and regulatory constraints. The course concludes with a detailed description of the financial feasibility analysis including the equity waterfall structure commonly used to finance real estate developments.
Real Estate Finance: Securities
This course explores public securities, both equity and debt, whose cash flows are linked to real estate assets. The initial segment of the course centers on Real Estate Investment Trusts (REITs), while the subsequent portion delves into debt securities, including Residential Mortgage-Backed Securities (RMBS) and Commercial Mortgage-Backed Securities (CMBS).
Real Estate Market Analysis
In this course, students are introduced to the principles of real estate market analysis. It commences by elucidating the key components of a market study and subsequently explores various property types and the factors influencing their demand. The primary aim is to equip students with the skills necessary to estimate attainable rents, absorption rates, stabilized vacancy rates, and the capture rate for potential developments. Additionally, students have access to Moody’s REIS database as a valuable resource.