Learning Objectives
Lesson 1: Ownership Goals within the Market
Owners have high expectations of their real estate management professionals, and a strong knowledge of finance is an advantage that can enhance a real estate manager’s relationships with clients and the professionals that turn to them for their expertise.
In this lesson, you will learn how to:
- Establish property goals in collaboration with ownership
- Explain external impacts on real estate
Lesson 2: The Accounting Function
Today, one cannot try to identify a single business model for a real estate management office and its accounting function. Many permutations can be found across different companies and regions, providing greater flexibility and market differentiation in terms of level and cost of service.
In this lesson, you will learn how to:
- Discuss approaches to accounting and list associated personnel
- Explore ethical budgeting and accounting
- Compare cash, accrual, and modified accounting
Lesson 3: Financial Reporting
Accurate information is the foundation of managerial decisions. Therefore, the real estate manager must be aware of the different criteria that apply to various financial reports.
In this lesson, you will learn how to:
- Interpret common reports shared with ownership
- Calculate balance sheet ratios
Lesson 4: Budget Elements and Cash Flow
Accounting terms and concepts are the basis of the language of real estate finance. Real estate managers need to understand these concepts to set operating goals for the property, measure performance, and communicate to ownership.
In this lesson, you will learn how to:
- Define each element of the statement of cash flow
- Calculate operating expense pass-through amounts
Lesson 5: Budget Forecasting and Monitoring
Budgets are a tool used by real estate managers to plan and control a property’s operations. Learning and
applying the skills to develop and monitor budgets is essential for all real estate managers. Define common budget types
In this lesson, you will learn how to:
- Compare and apply various budget forecasting methods
- Analyze favorable and unfavorable budget variances
Lesson 6: Income and Property Value
In a sense, all of real estate finance is a study of valuation—how much a property is worth. The single most important contribution that a real estate manager makes is to build value for an investor.
In this lesson, you will learn how to:
- Explain how management staff can impact the bottom line
- Use the capitalization rate to determine property value
