This course explores traditional and alternative financing techniques, mortgage banking, and investment and loan underwriting analysis, with emphasis on decision making from the equity investors point of view. Specific topics include Compounding, Discounting and Time Value of Money as well as key financial concepts such as Internal Rate of Return (IRR), Net Present Value (NPV), Cap Rate, Investment Value, and Modified Internal Rate of Return (MIRR) to compare different types of commercial real estate investments.
During this course the student will develop and utilize proformas and financial models to analyze a commercial real estate investment either leveraged or unleveraged, as well as stress test and manipulate variables for in-depth sensitivity analysis.
An Excel model for performing Discounted Cash Flow (DCF) Analysis will be provided, together with other Excel models and templates for your continued use once the course has completed.
The course modules are as follows:
- An Introduction to Real Estate Markets and Market Cycles
- Building a basic Real Estate Investment Proforma
- One Year Proforma Analysis Measures
- Compounding, Discounting and Time Value of Money
- Internal Rate of Return, Net Present Value and Investment Value
- Commercial Real Estate Loans: PMT, ADS, Effective Borrowing Cost
- Building a comprehensive multi-period DCF to analyze an investment opportunity.
- Financial Leverage and Operating Leverage
- How taxation can affect profitability, regardless of country
- Investment Underwriting Case Study
This is a fast-paced course for commercial real estate professionals who want to increase their knowledge, expand their skills, and learn to use take-away tools to enhance their real estate investment decision making.
