Craig Furfine
Clinical Professor of Finance
Associate Chair of the Finance Department
Furfine studies the functioning of interbank markets, commercial mortgage securitization, real estate finance, and various topics in strategic financial planning. He has published in scholarly journals including the Review of Corporate Finance Studies, the Journal of Business, the Journal of Monetary Economics and the Journal of Money, Credit, and Banking. He currently serves as an Associate Chair of the Finance Department, Associate Editor of the Journal of Money, Credit, and Banking and Treasurer of the Midwest Finance Association. Prior to joining the Kellogg School faculty, he was an economic advisor in the economic research department at the Federal Reserve Bank of Chicago. He previously served as a senior economist at the Bank for International Settlements in Basel, Switzerland where he contributed to the revision of international bank capital standards. Before that, he was an economist at the Board of Governors of the Federal Reserve System, where he served on international work groups responsible for analyzing various payment system issues. Furfine teaches corporate finance, multiple courses on real estate finance, strategic financial planning, and has written twenty case studies covering a wide range of topics in real estate finance and financial planning. He is the author of Practical Finance for Property Investment, a book designed for investors and students interested in learning what finance theory implies about property investment. He received a PhD in economics from Stanford University.
- Commercial real estate finance; securitization; commercial and residential mortgages; bank capital requirements; interbank markets; financial planning
- Real estate finance; corporate finance; financial planning
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PhD, 1995, Economics, Stanford University
MA, 1993, Economics, Stanford University
BA, 1990, Economics, University of California, Berkeley, highest departmental honors -
Clinical Professor, Finance, Kellogg School of Management, Northwestern University, 2008-present
Visiting Associate Professor of Finance, Kellogg School of Management, Northwestern University, 2007-2008 -
Economic Advisor, Federal Reserve Bank of Chicago, 2002-2008
Senior Economist, Bank for International Settlements, 1998-2002
Economist, Federal Reserve Board of Governors, 1995-1998 -
Editorial Board, Journal of Money, Credit and Banking, 2011
Managerial Finance I (FINCX-430-0)
Managerial Finance I introduces the basic techniques of finance. Topics include discounting techniques and applications; evaluation of capital expenditures; and estimating cost of capital and bond and stock valuation.
Strategic Financial Planning and Wealth Management (FINC-957-0)
This course is a hands-on, problem-solving-based course designed for students who wish to learn about accomplishing the most common goals of lifetime financial planning. Over the course of the quarter, you will learn how best to answer key financial planning questions, such as: What lifestyle can my income support? Should I buy that first house or continue to rent? How much can I reasonably contribute towards the cost of my children's college education, and will that be enough? Should I insure against adverse events that could derail my financial plan, and if so, how? What do I need to be saving for my ultimate retirement? How much will I be able to spend after I stop working? And finally, will I be able to leave a financial legacy? While learning how best to answer these questions, you will be introduced to an array of financial instruments that may be most suitable for accomplishing your financial goals, such as term and whole life insurance, immediate and deferred annuities, and reverse mortgages. The course also discusses how individuals can increase the probability of financial success through knowledge of the tax code and estate planning. The course would be beneficial to anyone with financial goals, and especially relevant to those planning to work in wealth management or related roles. Co-requisite for this course is FINC-450 or consent of instructor.
Applied Real Estate Finance and Investments (FINC-455-0)
This course uses case studies to enhance student understanding of investment and financing decisions in the commercial real estate industry. Building on the material covered from the prerequisite course, FINC-454, this course emphasizes topics particularly relevant to the professional property investor. The course begins by exploring how to value land held for commercial development, how to make investment decisions regarding ground-up development, and the circumstances that lead the public sector to support private real estate development. Next, the course explores the role of financial markets to provide financing through securitization of both commercial and residential mortgages. The course concludes with examinations of the corporate use of real estate, performance attribution, and the allocation and investment decisions made by institutional investors into real estate assets. Class is a mixture of lectures, case discussions, and in-class exercises. There is no final exam.
Real Estate Finance and Investments (FINC-454-0)
This course is an introduction to the most fundamental concepts, principles, analytical methods and tools useful for making investing and financing decisions regarding income-producing property. We begin the course by considering how to estimate the cash flows and discount rates for investment property, allowing us to estimate a property's fundamental value. We next discuss how investment property is generally financed by a close examination of real estate debt markets as well as real estate private equity. We consider the taxation of property as well as how investors should think about the risks to investing in property. We conclude with important considerations for investors when their investment thesis does not come to fruition. We will study property investment using the tools and framework of modern corporate finance and investments, while focusing on the institutional features unique to the real estate industry. As such, the course is designed for students with or without a real estate background, who may be interested in learning about investing in property, either personally or professionally. Students complete individual homework, group cases, and a midterm and final exam.
Real Estate Finance & Investment (BUS_INST-331-0)
An introduction to the fundamental concepts, principles, analytical methods and tools used for making investing and financing decisions regarding income producing properties. Topics covered include leases, cash flow-based real estate evaluation, property financing (debt), real estate private equity, and property taxation. Prerequisites: ECON 201-0, ECON 202-0, STAT 210-0 or equivalent, BUS_INST 304-0 or equivalent.
