Matching Items (14)

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The Monetary and Non-Monetary Value of a Real Estate License

Description

My Honors Thesis is about answering a central question regarding the business of real estate: "What is the return on investment of obtaining a real estate license?" I focused my research on the monetary, time, and other value factors that

My Honors Thesis is about answering a central question regarding the business of real estate: "What is the return on investment of obtaining a real estate license?" I focused my research on the monetary, time, and other value factors that affect the initial cost of securing a real estate salesperson license in the State of Arizona (costs) and the amount of money a licensed salesperson makes as a result of having a salesperson license (income). Licensees make this trade-off: the cost in terms of real dollars to obtain a license, as well as the opportunity costs associated with the time to secure, start using, and begin to earn money by way of a salesperson license. To answer the central question I conducted a survey of active licensees in order to determine the value ascribed to holding a real estate salesperson license. Through my research, I concluded that there is not a single number that can be assigned to a real estate license that indicates its value, but the data collected reveals that the return on investment has the potential to be great. Upfront costs and fees necessary to obtain a license are insignificant when the commission a licensee can then make from a single transaction is enough to cover those expenses. Therefore, based on the survey results and research into the initial costs associated with obtaining a real estate license, there appears to be sufficient data to support a positive return on investment and warrant obtaining a real estate license.

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Agent

Created

Date Created
2018-05

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Chinese Investment in Latin America and Latent Implications

Description

Within sixty years, the People’s Republic of China has risen from a struggling post-civil war state to the second largest economy in the world, comprising of 16.71 percent of the global economy as of 2015. While China has grown,

Within sixty years, the People’s Republic of China has risen from a struggling post-civil war state to the second largest economy in the world, comprising of 16.71 percent of the global economy as of 2015. While China has grown, its presence internationally has grown as well—China has utilized its capital to foment important relationships and foster soft power dynamics, making billions available in development aid and investment projects across the globe, most notably in Africa and Latin America, where Chinese goods have begun to dominate the markets there as they have in American counterparts. However, within Latin America China has been investing in countries that are traditionally seen as “risky” financial investments. This paper hypothesizes that the returns on Chinese investments in Latin America are not financial, but political—that China is investing in expansion of its soft-power and legitimizing its beginnings of global hegemony. The paper also explores the success of these initiatives by comparing the level of Chinese investment to changes in Latin American foreign policy alignment, discourse, and agreements through utilizing case studies of Venezuela and Bolivia.

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Agent

Created

Date Created
2018-05

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Capital Efficiency Metrics

Description

We gathered and analyzed key data from a wide-range of competitors in the foundry, fabless, and Integrated design manufacturing business. After detecting a downward trend in the return of invested capital (ROIC) and higher capital intensity of Company X, we

We gathered and analyzed key data from a wide-range of competitors in the foundry, fabless, and Integrated design manufacturing business. After detecting a downward trend in the return of invested capital (ROIC) and higher capital intensity of Company X, we searched for alternatives to turn this around. We conclude that, to decrease the net PPE of Company X, a sale-leaseback transaction would help Company X reduce their balance sheet and provided financing to advance their manufacturing capabilities.

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Agent

Created

Date Created
2018-05

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Diversification and Integration Benefits of Frontier Market Equity Funds

Description

This report will provide an analysis of frontier market equity-based investment funds with respect to bivariate correlation analysis, global integration analysis, and US optimized portfolio statistics. My analysis has indicated strong diversification benefits of including frontier market equities in a

This report will provide an analysis of frontier market equity-based investment funds with respect to bivariate correlation analysis, global integration analysis, and US optimized portfolio statistics. My analysis has indicated strong diversification benefits of including frontier market equities in a US portfolio, given its low correlation to US equity concentrated portfolios especially portfolios that would consist of midcap and smallcap stocks. With the drawbacks of the bivariate correlation test, an additional global integration analysis has been included to reaffirm the value frontier markets offer in the form of integration. Integration is a second layer of the diversification analysis. I find that when analyzing frontier markets (FM) against developed markets (DM) there exhibits significantly less integration as compared to emerging markets against developed markets. This analysis goes one step further and quantifies integration of specific frontier market funds against the broader emerging and developed markets. This study finds that iShares MSCI frontier 100 ETF (Ticker: FM) exhibits the least integration amongst Guggenheim Frontier Markets ETF (Ticker: FRN), Templeton Frontier Markets A (Ticker: TFMAX), and Morgan Stanley Frontier Emg (Ticker: MFMIX). Lastly, this analysis covers the inadequacy with using Sharpe ratios and minimum volatility parameters to achieve portfolio optimization under a Monte-Carlo style 1000 portfolio simulation with frontier market funds in a broader US equity portfolio but finds better results when using a US equity and US bond combination portfolio. Overall, this analysis of frontier markets and frontier market funds has shown there still exists significant diversification benefits to US Investors when they engage in FM investments, specifically through diversified FM investment funds.

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Agent

Created

Date Created
2018-05

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Private Equity Real Estate: Market Analysis and Underwriting for Value-Add Commercial Multifamily Investments

Description

For this thesis, the authors would like to create a hypothetical Private Equity Real Estate Investment firm that focuses on creating value for partners by taking an opportunistic approach to acquiring under-performing urban multi-family properties with large upside potential for

For this thesis, the authors would like to create a hypothetical Private Equity Real Estate Investment firm that focuses on creating value for partners by taking an opportunistic approach to acquiring under-performing urban multi-family properties with large upside potential for investing. The project will focus on both the market analysis and financial modeling associated with investment strategy and transactions. There is a substantial amount of complexity within commercial real estate and this thesis seeks to offer an accurate and comprehensive documentary of the process, while simplifying it for everyday readers. Additionally, there are a significant amount of risk factors associated with investment decisions, so the best practices from the industry documented in this manuscript are valuable tools for successful investing in the future. To gain the most profound and reliable industry knowledge, the authors leveraged the experience of dozens of industry professionals through research and personal interviews. Through careful analysis, the authors were able to ascertain the current economic position in the real estate cycle and to create a plan for future investing. Additionally, they were able to identify and evaluate a specific asset for purchase. As a result, the authors found that multifamily properties are a sound investment for the next two years and that the company should slowly start to shift directions to office and retail in 2018.

Contributors

Agent

Created

Date Created
2016-05

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Solis Lofts Development Proposal

Description

The Solis Lofts Development Proposal thesis consisted of a full prospective development within the City of Tempe. Our team conducted a vast amount of market research to determine what sector of the market would provide the best return on investment.

The Solis Lofts Development Proposal thesis consisted of a full prospective development within the City of Tempe. Our team conducted a vast amount of market research to determine what sector of the market would provide the best return on investment. We organized meetings with local brokers from Cushman & Wakefield, CBRE, JLL, and Colliers International to learn more about the current market environment. Also, we organized meetings with local developers, architects, and lenders. These included Merit Partners, Sunbelt Holdings, MODUS Development, Catclar Investments, 5Visual, Butler Design Group, and Colonial Capital. Through the research we conducted we were able to successfully determine that a multifamily development within the City of Tempe would be a great way to enter the Commercial Real Estate Development field. Our project consisted of the full land acquisition process, architectural site plan review, financial analysis, and completion of the product.

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Agent

Created

Date Created
2019-05

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Managing Real Estate Investments: An analysis of microeconomic and financial metrics and scenarios and their effect on investor-level asset returns

Description

This paper will examine the statistical significance of IRR dispersions caused by adjustments to property conditions. Many different economic metrics affect the returns and performance of real estate assets. During the underwriting process, many of these factors are considered and

This paper will examine the statistical significance of IRR dispersions caused by adjustments to property conditions. Many different economic metrics affect the returns and performance of real estate assets. During the underwriting process, many of these factors are considered and analyzed to find the true value of the asset given a set of market conditions. Because of the dynamic nature of the market, these factors fluctuate and therefore affect asset returns. Using Argus software, real estate managers can identify these variables and see how their adjustments affect asset returns in real-time. The beginning of this paper will start with an outline of the properties being analyzed, and well as financial information and market assumptions. For the statistical analysis, the Argus inputs that will be analyzed are:
1. Rental Revenue
2. Occupancy Rate
3. Tenant Improvements
4. Leasing Commissions
5. Operating Expenses
6. Capital Expenditures
7. Purchase Price
8. LTV
9. Debt Service Payment
10. Exit Sales Price
For the analysis, each variable will be individually adjusted without any changes to the other variables to ensure that changes in IRR are solely a result of the variable being adjusted. After the sensitivity analysis, each variable will be examined further the showcase differences in disparities and provide managerial insight. Finally, the findings will be applied to a modern-day scenario for additional insight on the practice use of the data. The importance of this data is that once analyzed, it can help real estate managers understand the main determinants of value in commercial real estate investments.

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Agent

Created

Date Created
2020-05

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Evaluating the Utility of Investor Sentiment Measures in Predicting Performance of the S&P 500

Description

This paper investigates whether measures of investor sentiment can be used to predict future total returns of the S&P 500 index. Rolling regressions and other statistical techniques are used to determine which indicators contain the most predictive information and which

This paper investigates whether measures of investor sentiment can be used to predict future total returns of the S&P 500 index. Rolling regressions and other statistical techniques are used to determine which indicators contain the most predictive information and which time horizons' returns are "easiest" to predict in a three year data set. The five "most predictive" indicators are used to predict 180 calendar day future returns of the market and simulated investment of hypothetical accounts is conducted in an independent six year data set based on the rolling regression future return predictions. Some indicators, most notably the VIX index, appear to contain predictive information which led to out-performance of the accounts that invested based on the rolling regression model's predictions.

Contributors

Agent

Created

Date Created
2013-12

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Essays in corporate policy: dividend policy, index labeling effect, investment, and cash flow duration

Description

This dissertation consists of two essays on corporate policy. The first chapter analyzes whether being labeled a “growth” firm or a “value” firm affects the firm’s dividend policy. I focus on the dividend policy because of its discretionary nature and

This dissertation consists of two essays on corporate policy. The first chapter analyzes whether being labeled a “growth” firm or a “value” firm affects the firm’s dividend policy. I focus on the dividend policy because of its discretionary nature and the link to investor demand. To address endogeneity concerns, I use regression discontinuity design around the threshold to assign firms to each category. The results show that “value” firms have a significantly higher dividend payout - about four percentage points - than growth firms. This approach establishes a causal link between firm “growth/value” labels and dividend policy.

The second chapter develops investment policy model which associated with du- ration of cash flow. Firms are doing their business by operating a portfolio of projects that have various duration, and the duration of the project portfolio generates dif- ferent duration of cash flow stream. By assuming the duration of cash flow as a firm specific characteristic, this paper analyzes how the duration of cash flow affects firms’ investment decision. I develop a model of investment, external finance, and savings to characterize how firms’ decision is affected by the duration of cash flow. Firms maximize total value of cash flow, while they have to maintain their solvency by paying a fixed cost for the operation. I empirically confirm the positive correlation between duration of cash flow and investment with theoretical support. Financial constraint suffocates the firm when they face solvency issue, so that model with financial constraint shows that the correlation between duration of cash flow and investment is stronger than low financial constraint case.

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Agent

Created

Date Created
2015

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The role of political connections in mitigating policy uncertainty: evidence from firm-specific investment

Description

In this study, I test whether firms reduce the information asymmetry stemming from the political process by investing in political connections. I expect that connected firms enjoy differential access to relevant political information, and use this information to mitigate the

In this study, I test whether firms reduce the information asymmetry stemming from the political process by investing in political connections. I expect that connected firms enjoy differential access to relevant political information, and use this information to mitigate the negative consequences of political uncertainty. I investigate this construct in the context of firm-specific investment, where prior literature has documented a negative relation between investment and uncertainty. Specifically, I regress firm investment levels on the interaction of time-varying political uncertainty and the degree of a firm's political connectedness, controlling for determinants of investment, political participation, general macroeconomic conditions, and firm and time-period fixed effects. Consistent with prior work, I first document that firm-specific investment levels are significantly lower during periods of increased uncertainty, defined as the year leading up to a national election. I then assess the extent that political connections offset the negative effect of political uncertainty. Consistent with my hypothesis, I document the mitigating effect of political connections on the negative relation between investment levels and political uncertainty. These findings are robust to controls for alternative explanations related to the pre-electoral manipulation hypothesis and industry-level political participation. These findings are also robust to alternative specifications designed to address the possibility that time-invariant firm characteristics are driving the observed results. I also examine whether investors consider time-varying political uncertainty and the mitigating effect of political connections when capitalizing current earnings news. I find support that the earnings-response coefficient is lower during periods of increased uncertainty. However, I do not find evidence that investors incorporate the value relevant information in political connections as a mitigating factor.

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Agent

Created

Date Created
2014