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Clauretie, Terrence M., and G. Stacy Sirmans. Real Estate Finance: Theory and Practice, Third Edition. Upper Saddle River, NJ: Prentice-Hall, 1999, 584 pages. The scope of the book is as in-depth as the title implies. Real Estate Finance offers an upto-date, carefully documented review and thorough analysis on the theory and practice of real estate finance. It is a comprehensive text that covers every aspect of real estate finance with discussions, examples, and problem-solving demonstrations. However, the most impressive feature of this book is its attempt to examine the evolution of real estate financing markets, relevant financial economics theories, and recent empirical research findings in these areas. It draws a close link between real estate financing practice and theoretical foundations. Clauretie and Sirmans approach this text with extraordinary enthusiasm, knowledge, skills, and hard work, making the book a unique collection of facts on theory, empirical findings, and historical events, as well as financial methodology.
Users will find the new edition especially user friendly. The authors added more numerical examples and problems (e.g., on valuation of mortgage securities and CMOs (Chapter 11) and permanent financing of commercial real estate properties (Chapter 19) on various leasing topics). Their timely updates on various topics are noticeable. For example, the enhanced coverage of housing-related law and regulations included the 1997 Taxpayer Relief Act and is just what readers, and especially instructors, need. With the new edition, Clauretie and Sirmans present an ideal textbook for upper-level undergraduate and graduate-level (e.g., MBA programs) real estate finance courses. Because of the vast and well-documented facts it offers, this text can also be used as a resource book for research for financial economists or as a reference book for practitioners in real estate markets.
The first fourteen chapters cover topics in residential real estate financing markets, and the next eight chapters discuss the concepts involved in commercial markets. In Chapters 2 and 3, the authors provide an...