Basic Real Estate Finance Course

September 13 - November 8, 2012
8 week course
Course details
Online - 2 hours each Thursday (Noon - 2 p.m. EST)

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, determinates 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.

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