Course is closed
Lead Instructor(s)
Date(s)
Jun 08 - 09, 2020
Location
On Campus
Course Length
2 Days
Course Fee
$3,200
CEUs
1.2
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THIS COURSE MAY BE TAKEN INDIVIDUALLY OR AS PART OF THE PROFESSIONAL CERTIFICATE PROGRAM IN REAL ESTATE FINANCE & DEVELOPMENT

The Real Estate Finance: Fundamentals course is a “finance boot camp” for real estate developers, investors, lenders, lawyers, and other real estate professionals who need to analyze the financial feasibility of real estate development ventures.

Participants will gain a comprehensive understanding of how investment returns are calculated and how income producing assets are valued. Designed for those without a financial background, this course integrates finance theory and taxation principles with conventional real estate practice.

This course has been approved for 16 CPD credits toward renewal of the CoreNet Global MCR designation.

Participant Takeaways

  • Understand the financial infrastructure underpinning real estate development
  • Learn how financial drivers such as capital structure, investment returns, and taxes motivate stakeholders
  • Understand the combination of factors that determine financial feasibility

Who Should Attend

This course is applicable to a wide range of professionals across the real estate, banking, finance/investment, and insurance industries. Specifically, the course may be of interest to fund managers, investment portfolio managers, financial advisors, investment bankers, fixed-income analysts, financial risk managers, global financial market specialists, and professionals working in macroeconomic policy. More generally, this class can be valuable to anyone dealing with global financial markets and real estate investments.

Requirements

Laptops or tablets are required to access course materials. All materials will be distributed electronically.

Program Outline

Course runs 9:00 am – 4:30 pm on Monday, and 9:00 am – 4:00 pm on Tuesday. Please note that the schedule is subject to change.

DAY ONE
8:00 am – 9:00 am: Registration / breakfast

9:00 am – 10:30 am: Valuation: Understand Net Present Value (NPV), Opportunity Cost, Multiples and Cap Rates

10:30 am – 10:45 am: Break

10:45 am – noon: Health Development Corporation Case: Preparation and Discussion

Noon – 1:00 pm: Lunch Break

1:00 pm – 2:15 pm: Measuring Investment Performance: Understand Nominal Versus Real Returns, Internal Rate of Return (IRR), and Introduce Risk-Return Tradeoff in Real Estate Investments

2:15 pm – 2:30 pm: Break

2:30 pm – 4:30 pm: Pro Forma Analysis: Develop Property Pro Formas, Introduce Debt Financing, and Understand Potential Abuses of Pro Formas

DAY TWO
8:30 am – 9:00 am: Breakfast

9:00 am – 10:30 am: IBET Pension Fund Case: Preparation and Discussion

10:30 am –10:45 am: Break

10:45 am – noon: Leases: Space, Operating, and Land

Noon –1:00 pm: Lunch Break

1:00 pm – 2:30 pm: Sources of Financing

2:30 pm – 2:45 pm: Break

2:45 pm – 4:00 pm: Risk and Return: Understand Diversifiable Versus Non-diversifiable Risk, Real Estate in a Portfolio Context

Testimonials

“Attending MIT [CRE] for the Real Estate Finance: Fundamental course has given me the fundamental financial concepts applicable to real estate development. The instructor was very experienced and knowledgeable and was able to answer questions with facts and figures. The environment was conducive and a worthwhile experience.”
OLAIYA ISRAEL AYODELE, MD/CEO, DELE OLAIYA & ASSOCIATES
“A great refresher course, even for real estate professionals with experience. Engaging instructor and great tips.”
KATHY MCGILVRAY, DIRECTOR OF INVESTMENT, MASSACHUSETTS HOUSING INVEST CORP.
“I always regretted not adding an MBA to my JD. This course offered a great opportunity to learn the fundamentals of real estate finance to enhance my practice. It was a perfect survey for professionals supporting the real estate industry – informative without being overwhelming.”
KATHERINE MUSCALINO
“Excellent course on the fundamentals of finance, and specifically real estate finance. Tod is an excellent teacher and was able to break down concepts much better than many of my MBA professors.”
MIKE BANNON
“Great course- very informative. I will be recommending future offerings to my colleagues.”
NICK KAZILIS
Content

The type of content you will learn in this course, whether it's a foundational understanding of the subject, the hottest trends and developments in the field, or suggested practical applications for industry.

Fundamentals: Core concepts, understandings, and tools - 45%|Latest Developments: Recent advances and future trends - 10%|Industry Applications: Linking theory and real-world - 45%
45|10|45
Delivery Methods

How the course is taught, from traditional classroom lectures and riveting discussions to group projects to engaging and interactive simulations and exercises with your peers.

Lecture: Delivery of material in a lecture format - 50%|Discussion or Groupwork: Participatory learning - 50%
50|50
Levels

What level of expertise and familiarity the material in this course assumes you have. The greater the amount of introductory material taught in the course, the less you will need to be familiar with when you attend.

Introductory: Appropriate for a general audience - 75%|Specialized: Assumes experience in practice area or field - 25%
75|25