Real Estate Investment and Capital Markets

Real Estate Investment Capital

Real Estate Investment and Capital Markets

Real Estate Investment and Capital Markets examines the convergence of real estate and the capital markets by covering the structure and operation of the private and public, debt and equity real estate capital markets, as well as derivative markets that involve real estate. A thorough range of topics in equity real estate investment are examined including: private equity markets, private equity deal structuring, public and private real estate investment trusts (REITs), problems in measuring risk and return; structuring optimal portfolios, portfolio valuation issues, valuing publicly traded real estate securities, performance evaluation and attribution, and real estate risk management techniques. This course also covers a variety of topics in commercial real estate debt markets including: the structure of the US mortgage finance system, and the valuation of mortgages and commercial mortgage-backed securities.

Lesson Plans

Module 1

Overview of the Real Estate Capital Markets

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

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Date: October 19, 2017

This session will address the interaction of real estate space markets with the real estate capital markets. Students will gain an understanding of the current size and participants of the public and private, debt and equity, commercial real estate capital markets and will be able to define the types of real estate financed by the real estate capital markets. We'll also explore the various real estate investment strategies and define the major indices that measure public and private real estate investment returns over time.

Facilitator for this Lesson:
Jason S. Ting

Jason Ting

Principal

Ting Realty

Tulsa, Oklahoma

Subject Area:

Jason is Co-Founder of Ting Financial Group, a niche private equity real estate investment firm, and Principal of Ting Realty, a full service real estate development, management, and brokerage company. His direct responsibilities include acquisitions and dispositions, property management and leasing, domestic and foreign client relations, and new business formation. Jason blogs about his work and personal life journeys via JasTing.com, and is actively involved in his local community church leading personal finance workshops.

Module 2

Commercial Real Estate: Private Debt Market

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

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Date: October 26, 2017

We will discuss the commercial mortgage capital markets in regards to lenders, mortgage types and terms. Students will review and understand the contents of a loan submission package in addition to reviewing permanent loan underwriting guidelines and understanding how lenders make decisions on financing commercial property. Finally, students will take part in a case study in underwriting a commercial mortgage.

Module 3

Commercial Mortgage Analysis: Risk and Return Concepts

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

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Date: November 2, 2017

In this session, students will learn to identify and understand the differences between expected returns and stated yields on commercial mortgage loans. We will also discuss how to calculate an investment's yield degradation due to default and how to describe and calculate an expected return on a mortgage. Students will also participate in two case studies. The first case study will focus on computing expected return on a mortgage while the second exercise involves mortgage note valuation.

Module 4

Public Debt: Securitization and Commercial Mortgage Backed Securities: CMBS

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

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Date: November 9, 2017

This session will present a comprehensive overview of the residential and commercial mortgage markets as well as a discussion of the role and process of securitization. We will explore the structure of Commercial Mortgage-Backed Securities (CMBS), and students will demonstrate their understanding of the materials covered by working through a securitization example.

Module 5

Private Equity

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

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Date: November 16, 2017

During this session, students will take an in-depth look into real estate private equity markets. We will examine the sources of equity financing and discuss the investment vehicles used by private equity. Students will define the terms associated with private equity arrangements and gain an understanding of investment strategies pursued by private equity. We will also analyze the fees structures of private equity investment vehicles, discuss how joint ventures work and review two case studies detailing recent private equity joint venture deal structures.

Module 6

Public Equity: Real Estate Investment Trusts

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

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Date: November 30, 2017

This session will provide an overview of Real Estate Investment Trusts (REITs) and discuss the requirements necessary to qualify as a REIT. We will identify the types of REIT structures and discuss the pros and cons of public investment in real estate. Finally, we will discuss REIT valuation methodologies.

Module 7

Role of Real Estate in an Investment Portfolio

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

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Date: December 7, 2017

In this session, we'll discuss the attributes of real estate that make it attractive as part of a multi-asset investment portfolio and examine historical real estate risk and return performance relative to other asset classes. Finally, students will discuss, describe and provide examples of portfolio management.

Module 8

Real Estate Investment Management and Hedging Real Estate Risk: Using Real Estate Derivatives

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

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Date: December 14, 2017

In this final session, we'll start by taking an in-depth look at how investors view real estate as an investment class alongside other investment alternatives. In discussing real estate investment management, we'll explore institutional portfolio management trends and strategies and present an overview of the real estate investment management industry. Students will learn about basic asset-pricing theory and investment performance evaluation and benchmarking techniques. Finally, we will address how to attribute investment performance at the portfolio and property levels.

The second part of this session will focus on hedging real estate risk through the use of real estate derivatives. We will examine the backgrounds and common types of derivatives and discuss their different types and uses. Students will be learn to identify the real estate derivative products that are currently in use, define the mechanics of a real estate return swap and understand the risks involved in a real estate derivative. We will also demonstrate how to use derivatives to reallocate and rebalance a real estate portfolio and finally, work through a hedge illustration using a return swap.

Education Credits

Education Credits

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Real Estate Investment and Capital Markets 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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15 AIA/CES Learning Units
16 Professional Development Hours (PDH)
1.6 Continuing Education Units (CEUs)

Learning Objectives

Learning Objectives

  • Understand the size, structure and players of the real estate capital markets for public and private debt and public and private equity
  • Recognize the risks and returns inherent in the real estate capital markets and how to assess investment performance
  • Appraise the operation and future of commercial securitized mortgage markets
  • Explain how mortgage lenders and equity investors analyze, manage and hedge risk
  • Distinguish the types and structure of REITs, and to be able to analyze their funds from operations (FFOs) and Net Asset Values (NAVs)
  • Identify real estate's role as part of a mixed-asset portfolio
  • Recognize trends and patterns in the evolving and turbulent real estate capital markets

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
  • Nonmember: $995
  • Developing Leader: $595
  • Student Member: $95
  • Student Nonmember: $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

Confirmation

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 education@naiop.org.

Login instructions to access the online course are sent under separate cover from customercare@gototraining.com, 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 education@naiop.org.

Cancellation Policy

All cancellations must be in writing. Cancellations of registrants received after July 23, 2015, will be charged a fee of $100 per attendee. Cancellations received after July 30, 2015 will forfeit the registration fee. No refunds will be made for no-shows. Substitutions are permitted until July 30, 2015. Nonmembers substituting for members will pay the difference in fees. Cancellation/substitution notices should be sent to education@naiop.org or faxed to 703-674-1471.

FAQs

FAQs

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 education@naiop.org.

What are the computer requirements?

The interactive sessions will be accessed via GoToWebinar.com.

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 Parnarouskis at barbp@naiop.org for more information.