Basic Real Estate Finance - Spring

Basic Real Estate Finance

Basic Real Estate Finance

Date: January 10 - February 28, 2019 — 8 Week Course Day/Time: Thursdays; noon - 2 p.m. Eastern Location: Your Office Format: Online

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, determinates 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.

This course is also available on-demand.

Lesson Plans

Module 1

Introduction to Space Markets and Capital Markets

Time: 11:45 p.m. - 2 p.m. (Eastern Standard Time)

Date: January 10, 2019

This module 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 module will introduce the four quadrants of the capital market, discuss investment strategies and examine historic real estate returns.

Facilitator for this Lesson:
Hillman Lam

Hillman Lam

Adjunct Instructor

Columbia University’s GSAPP; Adjunct Instructor, New York University’s (NYU) Schack Institute of Real Estate; Adjunct Lecturer, Baruch College’s William Newman Department of Real Estate

New York City, New York

Subject Area:

He teaches commercial real estate finance-related courses and Argus Valuation DCF software. He’s a Vice President at Lam’s American, an affiliate of the Lam NYC EB-5 Regional Centre and the Lam Group. His former roles include acquisitions and development for Time Equities, Inc, appraiser at Hudson View Appraisals, and retail leasing at Robert K. Futterman & Associates.

Module 2

Real Estate Valuation Using Direct Capitalization

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

Date: January 17, 2019

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.

Facilitator for this Lesson:
Jason S. Ting

Jason Ting

Principal

Ting Realty

Tulsa, Oklahoma

Subject Area:

Jason Ting 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. 

Module 3

Real Estate Valuation Using Discounted Cash Flow Analysis

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

Date: January 24, 2019

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.

Facilitator for this Lesson:
Charles Tu

Charles C. Tu, PhD, CFA

Daniel F. Mulvihill Professor of Commercial Real Estate & Academic Director of MSRE Program

University of San Diego

San Diego, California

Subject Area:

Charles Tu is the Daniel F. Mulvihill Professor of Commercial Real Estate and Academic Director of the MS in Real Estate program in the Burnham-Moores Center for Real Estate at the University of San Diego. He teaches a variety of courses at both the graduate and undergraduate levels, including real estate finance and investment, real estate capital markets, real estate management, and real estate development.  He is also the principal instructor of Advanced Real Estate Finance in Urban Land Institute’s Real Estate School.  Tu earned his PhD in business administration from The George Washington University in 1999 and received the Chartered Financial Analyst (CFA) designation in 2000.  He became a LEED Accredited Professional in 2009 and is ARGUS Software Certified for both ARGUS Valuation-DCF and Developer. Tu is also a NAIOP Distinguished Fellow.

Module 4

Real Estate Leases

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

Date: January 31, 2019

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

Facilitator for this Lesson:
George Pincus

George Pincus Esq.

Shareholder

Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A.

Ft. Lauderdale, Florida

Subject Area: Essentials of the Development Process, Basic and Advanced Real Estate Finance, Real Estate Law and Land Use Policy, and Leasing, Marketing and Negotiations

George Pincus is a transactional real estate lawyer with almost 30 years of experience. His practice includes the structuring and documentation of joint venture deals between developers and sponsors and private equity investors. He also has extensive experience in purchase and sale, real estate finance and leasing transactions. Pincus has been an active member of NAIOP for over 20 years and is a regular speaker at NAIOP education events.

Module 5

Determinants of Real Estate Returns

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

Date: February 7, 2019

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

Facilitator for this Lesson:
Amy Lerseth

Amy F. Lerseth

Senior Vice President, Asset Management & Real Estate Services

Buzz Oates

Sacramento, California

Subject Area:

Amy Lerseth has more than twenty years of experience in the commercial real estate industry and is primarily responsible for the execution of the investment strategy and business plan for assets valued in excess of $1.5 billion. She is directly responsible for the management of the real estate, asset management, and property management companies, as well as driving Buzz Oates’ strategic vision and growth. Lerseth is a member of NAIOP, the Association of Commercial Real Estate, for which she serves on the Board of Directors as president elect; the Urban Land Institute; NAIOP’s Investment Management II National Forum; and Sacramento Metro Chamber’s Economic Development Committee. She fosters professional growth in the commercial real estate industry as a member of the NAIOP Center for Education faculty and as an instructor of BOMA Internationals Foundations of Real Estate Management Courses. Lerseth is a graduate of University of California, Los Angeles, with a Bachelor of Arts degree in English, with an emphasis on American studies. She is a graduate of the Sacramento Metro Chamber’s Leadership Sacramento program, a 2010 recipient of the Sacramento Business Journal’s 40 Under 40 award, a 2011 winner of the Sacramento Business Journal’s Woman Who Mean Business award, a 2012 honoree of Real Estate Forum’s national 40 Under 40 award, and in 2014 was named by Real Estate Forum as a Woman of Influence.

Module 6

Introduction to Debt Financing

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

Date: February 14, 2019

This module 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.

Facilitator for this Lesson:
Jim T. Neyer

Jim Neyer

EVP, Real Estate Development

Al. Neyer

Cincinnati, Ohio

Subject Area: Essentials of the Development Process, Advanced Development Practices, Basic Real Estate Finance, Leasing, Marketing and Negotiations, Site Feasibility and Financial Analysis of Development Projects

Jim Neyer leads Al. Neyer's real estate development activities with a balanced focus on market driven investment. He has more than 25 years experience in commercial real estate, development, financing and construction. He is a principal and a member of the Al. Neyer Executive Team and has the hands-on expertise and strategic perspective to drive results for Al. Neyer and its investor partners. Neyer serves as a faculty member for NAIOP's Center for Education.

In addition to his work with NAIOP Corporate and NAIOP Cincinnati/Northern Kentucky, he is involved with Downtown Cincinnati, Inc. and several other professional and community organizations. Neyer received his Bachelor of Science degree in civil engineering from Marquette University.

Module 7

Leveraged Real Estate Investments

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

Date: February 21, 2019

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

Facilitator for this Lesson:
Jim Clayton

Jim Clayton

Professor and Timothy R. Price Chair, Brookfield Centre in Real Estate & Infrastructure

Schulich School of Business at York University

Subject Area:

Jim Clayton was appointed Professor and Timothy R. Price Chair in Real Estate and Infrastructure at the newly established Brookfield Centre in the Schulich School of Business at York University in Toronto in January 2018. He is tasked with helping to lead and establish the Brookfield Centre as a global centre of excellence in teaching, research and engagement with industry and government. The Centre’s activities include Schulich’s 12-month Master of Real Estate and Infrastructure (MREI) program — the first of its kind in Canada and one of only a few in the world – one that builds on the School’s long-existing MBA specialization in real estate and infrastructure. Professor Clayton returned to academia and Canada from global investment manager Barings (formerly Cornerstone), where he was Head of Real Estate Investment Strategy and Analytics. He was responsible for monitoring and forecasting real estate investment and capital market trends, advising on fund and client investment and portfolio strategy, and delivering applied research and strategic thought pieces. He also sat on the equity and debt investment committees and the valuation committee. While at Barings Jim was an Adjunct Professor in the Real Estate Program in the School of Business at the University of Connecticut.

Module 8

Analyzing Debt Financing Options

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

Date: February 28, 2019

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.

Facilitator for this Lesson:
Dave Domres

Dave Domres, CPM, CCIM

Vice President

Physicians Realty Trust AMO

Milwaukee, Wisconsin

Subject Area: Financial Analysis of Development Projects

David G. Domres, CPM® CCIM, is currently vice president with Physicians Realty Trust AMO® headquartered in Milwaukee, Wisconsin.

With a career spanning more than 30 years, Domres has been involved with multiple property types providing acquisition, disposition, development, leasing, and asset and property management services.

Locally, Domres was the 2008 president of the Wisconsin Chapter of NAIOP, served on NAIOP’s corporate board and received NAIOP’s 2013 Volunteer of the Year recognition. Domres is a past president of the Institute of Real Estate Management (IREM) Milwaukee Chapter No. 13 where he received the chapter’s CERTIFIED PROPERTY MANAGER® of the Year Award three times.  Domres has contributed to numerous articles, publications and books about real estate investment and management.

Domres holds the Certified Commercial Investment Member (CCIM) and Certified Property Manager (CPM®) designations.  He is an adjunct instructor with the University of Wisconsin – Stout, Marquette University and IREM.

Education Credits

Education Credits

 center for education logo

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

Information to come.

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 Type USD CAD
Member $795 $1040
Nonmember $995 $1300
Developing Leader $595 $780
Student Member $95 $125
Student Nonmember $145 $190

How to Register

Register online.
Fax: Complete the PDF form   and fax to 703-904-7003
Mail: Send check payments to: NAIOP, CL500060, PO Box 5007, Merrifield, VA 22116-5007
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 December 18, 2018, will be charged a fee of $100 per attendee. Cancellations received after January 1, 2019 will forfeit the registration fee. No refunds will be made for no-shows. Substitutions are permitted until January 1, 2019. 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.