Multi-Objective Decisions in Real Estate Financing

Abstract

Real estate financing is a distribution and consumption process, through the circulation of money and credit channels. It includes funding, financing and related services. China’s current real estate financing has many problems, especially in financing channels. And they should be adopted by the characteristics of related real estate. In order to make a more reasonable decision in real estate financing, this article combines the real estate financing with the risk -return model and the multi-objective decision. If several real estate projects can estimate future risks and benefits more accurately, using the risk- return model. Firstly, we should compare the risks with benefits of these few items, then, compare the ratio of the benefits and risks. At last, by comparing the relative preference of investors, we can get the optimal solution. However, if it is not easy to estimate the real estate projects, using the AHP. Then we build the judgment matrix to calculate the weight of each index and get the conclusion. At last, we can get the project evaluation scores. By the scores, we can know whether the financing decision of real estate project is good or not. We can make a more reasonable decision in real estate financing with these two methods.