Arbitrage in Real Estate Construction

This lecture covers the concept of arbitrage in real estate construction, focusing on factors such as staggered payments, interest calculations over different time periods, and considerations for alternative constructions. The instructor discusses the steps involved in arbitration, including analyzing costs for refurbishment and modernization. Various scenarios are explored, such as arbitration between potential buyers with different needs and evaluating the cost of refurbishment versus new construction. The lecture also addresses challenges like the high cost of refurbishment due to regulatory requirements and different types of obsolescence affecting building value. Overall, the lecture provides insights into the complexities of real estate arbitration and the importance of considering various factors when estimating arbitration prices.