Want to get ahead in real estate finance? Get back to the basics with MIT. In this critically important two-day course, you’ll join accomplished global peers to enhance your foundational knowledge of the crucial factors shaping real estate finance today. Through real-world case studies, you’ll explore the financial infrastructures that underpin real estate development and improve your ability to make smart decisions related to financial feasibility.
Course Overview
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 the 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
The course runs 9:00 am – 5:00 pm Sunday-Monday. Please note all times are US Eastern Daylight Time. The schedule is subject to change.
DAY ONE
Morning: 9:00am - 12:00pm EST
This three-hour session will introduce you to the basics of valuation in financial markets with a special emphasis on real estate investments. Topics covered will include:
• Understanding present value
• Opportunity cost of capital
• Multiples and cap rates
After a fifteen-minute break, the materials will be supplemented by a case study emphasizing the various topics introduced earlier in the session. Student teams will be expected to discuss and prepare the case materials culminating in a case presentation.
Noon –1:00 pm: Lunch Break
Afternoon: 1:00 pm - 5:00pm EST
This session will continue our discussion of real estate finance building on the concepts introduced earlier in the day. Topics covered will include:
• Nominal versus real rates of interest
• Internal rate of return (IRR)
• Risk-return tradeoffs in real estate investments
• Pro Forma Analysis: Develop Property Pro Formas, Introduce Debt Financing, and Understand Potential Abuses of Pro Formas
DAY TWO
Morning: 9:00am - 12:00pm EST
This session will begin with a case study designed to emphasize the basics of real estate finance introduced the previous day. As before, student teams will be expected to discuss and prepare the case materials culminating in a case presentation.
After a fifteen-minute break, we will discuss:
• Measuring real estate investment performance
• Sensitivity analysis
• Investment performance attribution
Noon –1:00 pm: Lunch Break
Afternoon: 1:00 pm - 5:00pm EST
This session will introduce you to the role of real estate in a portfolio context. Topics covered will include:
• Measuring risk in financial markets
• Understanding diversifiable versus non-diversifiable risk
• Real estate in a portfolio context
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.
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.
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.