Basic Real Estate Finance

Basic Real Estate Finance

Basic Real Estate Finance

Basic Real Estate Finance is designed to provide entry level professionals with the skills necessary to analyze the financial feasibility of real estate investment opportunities. It provides a step-by-step approach for completing a financial feasibility analysis. Students will become more familiar with real estate market participants, valuation fundamentals, determinants of real estate returns, the impact of leverage on real estate investments, and interactions between the real estate space market and the capital market. This course is ideal for developers, asset managers and owners who have very little financial analysis experience. It will therefore emphasize fundamentals and will not delve into more complex issues that are covered in NAIOP's Advanced Real Estate Finance course.

Lesson Plans

May 13, 2015

Introduction to Space Markets and Capital Markets

Time: noon - 2 p.m. (Eastern Standard Time)

This session focuses on the relationship between the space market and the capital market, which will be used as a framework for the entire course. We'll also discuss why real estate is a unique asset class and identify major property types and classifications along with key real estate investors. In addition, this session will introduce the four quadrants of the capital market, discuss investment strategies and examine historic real estate returns.

May 20, 2015

Real Estate Valuation Using Direct Capitalization

Time: noon - 2 p.m. (Eastern Standard Time)

This section will focus on the basic structure of a real estate operating statement and how capitalization rates are used in conjunction with the operating statement to derive an estimate of value.

May 27, 2015

Real Estate Valuation Using Discounted Cash Flow Analysis

Time: noon - 2 p.m. (Eastern Standard Time)

In this section, we will differentiate discounted cash flow analysis from direct capitalization when the technique is presented to provide students with a clear understanding of the relationship between the two approaches to valuation.

June 3, 2015

Real Estate Leases

Time: noon - 2 p.m. (Eastern Standard Time)

This section will cover the legal aspects of real estate leases and focus on how each type of lease structure influences cash flow/value.

June 17, 2015

Determinants of Real Estate Returns

Time: noon - 2 p.m. (Eastern Standard Time)

Capitalization rates and discount rates will be broken down into their component parts to help students estimate potential changes in the rates over time.

June 24, 2015

Introduction to Debt Financing

Time: noon - 2 p.m. (Eastern Standard Time)

This session will emphasize mortgage terminology and basic skills such as calculating mortgage payments and balances in this module. We'll also discuss the relationship between leverage and investment risk.

July 8, 2015

Leveraged Real Estate Investments

Time: noon - 2 p.m. (Eastern Standard Time)

Leverage is incorporated into the reconstructed operating statement in this section to analyze the financial performance of a real estate investment.

Facilitator for this Lesson:
Jim Clayton

Jim Clayton

Vice President, Research

Cornerstone Real Estate Advisers, LLC

Subject Area:

Jim Clayton is Vice-President of Research at Cornerstone Real Estate Advisers LLC, a Hartford CT based global real estate investment adviser with affiliate and subsidiary offices in the US, UK, Europe and Asia. At Cornerstone, Jim is responsible for monitoring and forecasting real estate and capital market trends and delivering applied research and strategic thought pieces to the firm’s leadership and investor clients. Prior to joining Cornerstone in December 2008, he was the Director of Research at the Pension Real Estate Association (PREA). Before joining PREA in 2006, Jim held faculty positions at the University of Cincinnati and Saint Mary’s University (in Halifax, Nova Scotia). He is currently an Adjunct Professor in the Real Estate Program in the School of Business at the University of Connecticut and also teaches in executive education programs at the Real Property Association of Canada (REALpac). 

Jim is a Fellow of the Real Estate Research Institute (RERI), a Fellow of the Weimer School of Advanced Studies in Real Estate and Land Economics and a past recipient of a Homer-Hoyt Institute post-doctoral fellowship. He is active in a number of industry groups and is a frequent presenter at both industry and academic events in North America and abroad. Jim has an undergraduate degree in Economics from Queen’s University, an MA degree in Economics from the University of Western Ontario and a Ph.D. degree in Real Estate Finance and Urban Economics from the University of British Columbia.

July 15, 2015

Analyzing Debt Financing Options

Time: noon - 2 p.m. (Eastern Standard Time)

We'll discuss the skills necessary to estimate the maximum loan amount a property will support and to choose between financing options with different terms.

Education Credits

Education Credits

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Basic Real Estate Finance is approved for the following Education Credit:
16 hours credit toward either the Certificate of Advanced Study in Commercial Real Estate Development or the Certificate of Advanced Study in Real Estate Finance.

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16 AIA/CES Learning Units
16 Professional Development Hours (PDH)
1.6 Continuing Education Units (CEUs)

Learning Objectives

Learning Objectives

  • Defining "space markets" and "capital markets"
  • Identifying the four quadrants of the capital market
  • Developing an operating statement
  • Understanding capitalization rates
  • Differentiating capitalization rates from total yield
  • Defining and calculating net present value (NPV)
  • Defining and calculating unlevered internal rate of return (RR)
  • Differentiating between gross leases and net leases
  • Incorporating tenant reimbursements into the operating statement
  • Identifying the factors that cause capitalization rates and discount rates to change over time
  • Identifying sources of discount rate and capitalization rate data
  • Examining the relationship between leverage and risk
  • Calculating loan payments and loan balance

Tuition & Register

Tuition & Register

Payment for a NAIOP online course entitles access for one person only to the course and all materials.

Course Tuition

  • Member: $795
  • Non-member: $995
  • Developing Leader: $595
  • Student Member: $95
  • Student Non-Member: $145

How to Register

Register online
Fax: Complete the PDF form and fax to 703-904-7003
Mail: Send check payments to: P.O. Box 333354, Chantilly, VA 20153
Register over the phone/questions: 800-666-6780


All registrations processed online receive an automatic order confirmation and receipt. If you register via fax, mail, or phone, a receipt must be requested by contacting

Login instructions to access the online course are sent under separate cover from, approximately 1 week before the first class. If it is less than one week until the start of the course and you have not received the login instructions, please check your spam folder. If the login email is still not there, please contact the NAIOP Education Department at

Cancellation Policy

All cancellations must be in writing. Cancellations of registrants received after April 30, 2015, will be charged a fee of $100 per attendee. Cancellations received after May 7, 2015 will forfeit the registration fee. No refunds will be made for no-shows. Substitutions are permitted until May 7, 2015. Nonmembers substituting for members will pay the difference in fees. Cancellation/substitution notices should be sent to or faxed to 703-674-1471.



What does tuition cover?

Payment for a NAIOP online course entitles access for one person only to the course and all materials.

Is there an online instructor?

Yes, there is a live instructor presenting each class. Students are able and encouraged to engage and interact with the instructor and each other.

How much out-of-class work is required for each course?

Courses offered online require no more than one hour per week of additional work outside of the scheduled class times.

What if I miss a scheduled class?

If a student misses a class, all materials and a recording of each class is posted in the material library for the student to review before the next class. A student must attend a minimum of 75 percent of the classes to receive credit.

Do I have to take an exam?

Course exams are not required unless you are enrolled as a candidate for the Certificate of Advanced Study in Commercial Real Estate or the Certificate of Advanced Study in Real Estate Finance.

What records are kept of my coursework?

The Center maintains records of all the coursework you complete, as well as optional exam scores, in a confidential transcript. Transcripts are available to candidates upon request. Please contact

What are the computer requirements?

The interactive sessions will be accessed via

Please use the list below to determine if your computer meets the minimum requirements recommended to participate in the online courses:

To attend on a PC, the following is required:

  • Internet Explorer® 6.0 or newer, Mozilla® Firefox® 2.0 or newer (JavaScript™ and Java™ enabled)
  • Windows® 2000, XP, 2003 Server or Vista
  • Cable modem, DSL or better Internet connection
  • Minimum of Pentium® class 1GHz CPU with 512 MB of RAM (Recommended) (2 GB of RAM for Windows® Vista)

To attend on a Mac®, the following is required:

  • Mac OS X 10.4 (Tiger®) or newer
  • Safari 3.0 or newer, Firefox 2.0 or newer (JavaScript™ and Java™ enabled)
  • Cable modem, DSL or better Internet connection
  • Power PC G4/G5 or Intel processor (521 MB of RAM or better recommended)

Participants wishing to connect to audio using VoIP will need a fast Internet connection, a microphone and speakers (a USB headset is recommended).

Contact Barb David at for more information.