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.
Laptops or tablets are required to access course materials. All materials will be distributed electronically.
Earn a Professional Certificate in Real Estate Finance & Development
This course is part of the Real Estate Finance & Development certificate program, offered jointly by MIT Professional Education and the MIT Center for Real Estate.
Learn more about how you can earn a Professional Certificate when you take this and other real estate courses.
This course has been approved for 16 CPD credits toward renewal of the CoreNet Global MCR designation.
- Wait List
It is highly recommended that you apply for a course at least 6-8 weeks before the start date to guarantee there will be space available. After that date you may be placed on a waitlist. Courses with low enrollment may be cancelled up to 4 weeks before start date if sufficient enrollments are not met. If you are able to access the online application form, then registration for that particular course is still open.
Participants of this course will:
- 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.
Please note that the schedule is subject to change.
Computer Requirements: Laptops or tablets are required to access course materials. All materials will be distributed electronically.
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 Investement 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
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
Course runs 9:00 am – 4:30 pm on Monday, and 9:00 am – 4:00 pm on Tuesday.
OLAIYA ISRAEL AYODELE, MD/CEO, DELE OLAIYA & ASSOCIATES
“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.”
KATHY MCGILVRAY, DIRECTOR OF INVESTMENT, MASSACHUSETTS HOUSING INVEST CORP.
“A great refresher course, even for real estate professionals with experience. Engaging instructor and great tips.”
“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.”
“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.”
“Although not new concepts, by far the best delivery of these concepts I have been involved with.”
“Clarified methods to determine the real value of real estate projects.”
“Great course- very informative. I will be recommending future offerings to my colleagues.”
Dr. Walter Torous is a senior lecturer holding a joint appointment in the Center for Real Estate’s MSRED Program, as well as in the Sloan School of Management. As one of the nation’s leading scholars and researchers in real estate finance, Torous teaches a graduate course in Securitization.
Torous is the founding director of the Ziman Center for Real Estate and Professor Emeritus at UCLA Anderson School of Management. He taught managerial finance, real estate finance, and empirical methods in finance. His research interests include the pricing of financial instruments (options, future, risky debt, mortgages), the reorganization of financially distressed firms, and statistical issues in finance. He previously taught at the University of Michigan and the London Business School. He received his BMath from the University of Waterloo in 1976 and his PhD from the University of Pennsylvania in 1981, both in economics.
This course takes place on the MIT campus in Cambridge, Massachusetts. We can also offer this course for groups of employees at your location. Please complete the Custom Programs request form for further details.
|Fundamentals: Core concepts, understandings, and tools (45%)||45|
|Latest Developments: Recent advances and future trends (10%)||10|
|Industry Applications: Linking theory and real-world (45%)||45|
|Lecture: Delivery of material in a lecture format (50%)||50|
|Discussion or Groupwork: Participatory learning (50%)||50|
|Introductory: Appropriate for a general audience (75%)||75|
|Specialized: Assumes experience in practice area or field (25%)||25|