PLEASE ANSWR THE PROJCT WITH EXCEL SHEET CALCULATION STEP BY STEP: Project Overview This project simulates the real$-$world process of building and managing a residential real estate investment portfolio. In teams of $3-5$ you will guide a high$-$net$-$worth client through mortgage origination, financing decision$-$making, risk analysis in the mortgage market, and REIT evaluation. Your deliverables will showcase your ability to integrate real estate finance concepts into strategic investment decisions. $$ Project Objectives By completing this project, you will: $$ Understand the residential mortgage origination process $$ Create and interpret mortgage amortization schedules $$ Evaluate and compare mortgage financing options $$ Analyze cash flows, returns, and risks of real estate investments $$ Examine secondary mortgage markets and mortgage$-$backed securities $($MBS$)$ Compare direct property investment with REIT investments $$ Project Phases & Deliverables Phase $1$: Mortgage Origination & Amortization $$ Select a real residential property listing. $$ Research and compare $3$ real mortgage products $($e$.$g$.,30-$yr fixed, $15-$yr fixed, ARM$).$ Calculate amortization schedules and graph the results. $$ Recommend the best mortgage based on borrower needs. Deliverables: $$ Summary of options $$ Amortization charts $$ Mortgage recommendation Phase $2$: Mortgage Decision$-$Making $$ Model rental income and expense cash flows under each mortgage option. $$ Analyze return metrics: Cash$-$on$-$Cash Return, IRR, NPV$.$ Perform scenario testing for interest rate and property value changes. Deliverables: $$ Financial model in Excel $$ Risk$-$return analysis $$ Strategic recommendation memo Phase $3$: Secondary Market & MBS Analysis $$ Explain how your mortgage could be securitized and sold. $$ Identify a real MBS prospectus and analyze its structure and risks. $$ Discuss implications of prepayment and default risk for investors. Deliverables: $$ Report on secondary market process $$ MBS risk analysis $$ Reflection on investor pricing concerns Phase $4$: REIT Investment Strategy $$ Select and analyze two residential or hybrid REITs. $$ Compare dividend yield, leverage, assets, and performance. $$ Recommend a balanced strategy between REITs and direct ownership. Deliverables: $$ REIT comparison table $$ Graphs and written analysis $$ Portfolio strategy recommendation $$ Final Deliverables $1.$ Written Report $(5-7$ pages$)$ o Executive summary o Findings and recommendations for each phase o Supporting tables, graphs, and citations $2.$ Excel Workbook o Amortization schedules o Cash flow and return models o Sensitivity analysis tools $3.$ Presentation $(1015$ minutes$)$ o Visual summary of key insights o Realistic recommendations o Team reflection $($if applicable$)$