Basic Real Estate Finance On-demand

Basic Real Estate Finance

Basic Real Estate Finance

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, determinants 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.

About On-demand Courses

This is an edited version of a previously recorded, live, online course. Student and instructor comments are the opinions of the individuals and do not necessarily reflect the views of NAIOP.

All handouts and resource materials are posted with the module to which they belong, as well as an evaluation and assessment at the end of the course.

To receive proof of attendance for this course, each student must attend/view all eight modules and complete the evaluation.

As a NAIOP Certificate candidate, you must complete all eight modules in the Basic Real Estate Finance On-demand course, submit the evaluation, and pass the end-of-course assessment with a score of 80 percent or better.

If you experience any difficulty with accessing this on demand course or its materials, please email education@naiop.org or call 703-904-7100, 8:30 a.m.–5:30 p.m. (ET), Monday–Friday. You can also view the FAQ here.

Lesson Plans

Module 1

Introduction to Space Markets and Capital Markets

This session focuses on the relationship between the space market and the capital market, which will be used as a framework for the entire course. We'll also discuss why real estate is a unique asset class and identify major property types and classifications along with key real estate investors. In addition, this session will introduce the four quadrants of the capital market, discuss investment strategies and examine historic real estate returns.

Module 2

Real Estate Valuation Using Direct Capitalization

This section will focus on the basic structure of a real estate operating statement and how capitalization rates are used in conjunction with the operating statement to derive an estimate of value.

Module 3

Real Estate Valuation Using Discounted Cash Flow Analysis

In this section, we will differentiate discounted cash flow analysis from direct capitalization when the technique is presented to provide students with a clear understanding of the relationship between the two approaches to valuation.

Module 4

Real Estate Leases

This section will cover the legal aspects of real estate leases and focus on how each type of lease structure influences cash flow/value.

Module 5

Determinants of Real Estate Returns

Capitalization rates and discount rates will be broken down into their component parts to help students estimate potential changes in the rates over time.

Module 6

Introduction to Debt Financing

This session will emphasize mortgage terminology and basic skills such as calculating mortgage payments and balances in this module. We'll also discuss the relationship between leverage and investment risk.

Module 7

Leveraged Real Estate Investments

Leverage is incorporated into the reconstructed operating statement in this section to analyze the financial performance of a real estate investment.

Module 8

Analyzing Debt Financing Options

We'll discuss the skills necessary to estimate the maximum loan amount a property will support and to choose between financing options with different terms.

Education Credits

Education Credits

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Basic Real Estate Finance 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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16 AIA/CES Learning Units
16 Professional Development Hours (PDH)
1.6 Continuing Education Units (CEUs)

Learning Objectives

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

Tuition & Register

Tuition & Register

Payment for a NAIOP on demand 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

Confirmation

All registrations processed online receive an automatic confirmation. If you register via fax, mail or phone, the confirmation emails will be sent to you after your payment is received and processed. If you do not receive the confirmation emails within two weeks, please contact NAIOP at (703) 904-7100 to verify enrollment.

Login instructions to access the on-demand course are sent under separate cover from customercare@gototraining.com within 2 days. If you do not receive 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

No refunds will be issued.

FAQs

FAQs

Are the course materials accessed through the NAIOP website?

No. The only way to access the course materials is through the login email you will receive once payment is processed. The course materials are hosted on the GoToTraining website.

Can I access and view the recordings and materials on an iPad, iPhone, iPod or other iOS device?

At this time, no. Once that is available, all students will be notified of the improved functionality. We recommend accessing recordings on a desktop computer until that time.

Can I repeat a module?

Yes. You may repeat any module as many times as you’d like during the 3 months you have access to the course materials.

Can I retake the assessment/test?

Yes. Students can take the assessment/test up to 3 times. Please contact education@naiop.org to schedule a re-test.

Can I share this on-demand course with anyone else?

No. Payment for a NAIOP On-demand course entitles access for one person only to the course and all materials.

Do I have to view the modules in order?

No. You can take view the modules in any order you choose; however, depending on the course, some modules might build upon the one previous to it.

Do on-demand courses count towards the Certificate Programs?

Yes, all 16-hour on-demand courses count towards the Certificate Programs. NAIOP Certificate candidates must also take the assessment/test for each course and pass it with a score of 80% or better. Please review the Certificate Programs webpage to see what courses count towards each Certificate.

I’m having problems accessing the on-demand course.

If you experience any difficulty with accessing an on demand course or its materials, please email education@naiop.org or call 703-904-7100 between 8:30 a.m. and 5:30 p.m. Eastern time, Monday-Friday.

How do I ask a question?

Please send any question you have regarding content to education@naiop.org. We will forward it to an instructor for a response. Please allow up to a week for a response.

How do I receive my proof of attendance upon completion of the on-demand course?

Email education@naiop.org once you have attended/viewed all nine modules, and completed the evaluation and passed the assessment/test (where applicable) to receive your transcript as proof of completion. Please allow 30 days to receive your transcript.

How long do I have to complete the on-demand course?

You will have access to all handouts and resource materials for 3 months from your enrollment date.

Is there a required live component to the on-demand courses?

No. Students are not required to attend any live sessions. The system will require you to enter your First Name, Last Name and email address when viewing module recordings. We will track your attendance this way. Students can ignore the “Join” button and class dates that will appear in the confirmation email.

What is required to receive credit/proof of attendance for an on-demand course?

Students must attend/view all recorded modules in an on-demand course and complete the evaluation. NAIOP Certificate candidates must also take the assessment/test and pass it with a score of 80% or better.

What program do I need in order to view the recordings?

A: At this time, the recordings are .WMV files and are accessed through Microsoft Windows Media Player. If your system doesn’t have Windows Media Player, or it is out of date, please download it directly from Microsoft. Videos are also viewable using the VLC Media Player, which is downloadable at http://www.videolan.org/vlc/index.html.

Links: links to third party pages are provided for convenience only. We do not express any opinion on the content of any third party pages and expressly disclaim any liability for all third party information and the use of it.

Will I have instant access to all course materials upon registration?

Yes. Assuming you register via the NAIOP website, you will receive an email with login instructions within minutes of the payment being processed online. If you register via fax or check, it can take up to three (3) business days from receipt of payment for you to receive your login instructions. Please note, check payments can take up to 2 weeks to process through the bank. Online registration is the preferred and fastest method.