Lesson Plans
Overview of the Real Estate Development Process
Time:
11:45 p.m.
-
2 p.m.
(Eastern Standard Time)
Date: January 9, 2019
During this module, students will discuss what real estate developers are and what real estate developers do from several points of view. Students will also review various perspectives of real estate development from the writings of James A. Graaskamp. The discussion then moves to the seven-stage real estate development process using a schematic diagram, a box diagram, and a venn diagram. The seven stage model is combined with the eight required tasks for each stage to define the real estate “Development Matrix.” This 56-cell matrix is analyzed to demonstrate how real estate developers and real estate professionals interact throughout the life cycle of a real estate project. The students will expand this two-dimensional model to include property types and thereby define a three-dimensional real estate “Development Cube.” At the end of this module, students will have a working knowledge of the development matrix.
Land Banking
Time:
noon
-
2 p.m.
(Eastern Standard Time)
Date: January 16, 2019
This module explores the first stage, Land Banking, in the real estate development process in terms of how value is created in this stage. Students will review the critical tasks, major risks, key players, and controllable costs of this stage. Students will learn to identify land bankers and understand the role of land banking in its relation to other stages. Students will learn to understand the varied nuances of the term “value” in real estate and the difference between market and investment value. This module also demonstrates the three variable Direct Capitalization Model and compares it to the more complex Discounted Cash Flow Model. This course will utilize the Direct Capitalization Models to calculate and compare values throughout the real estate development process.
Land Packaging
Time:
noon
-
2 p.m.
(Eastern Standard Time)
Date: January 23, 2019
This module explores the second stage of the real estate development process, Land Packaging. Students will review the critical tasks, major risks, key players, and controllable costs of this stage. Students will identify the steps in the land packaging process and recognize the important roles of the numerous stakeholders required in this stage. Students will learn to calculate stabilized Net Operating Income (NOI) using gross income, vacancy & collections, and operating expenses. Students will also learn to estimate overall capitalization rates and understand the difference between market and investor’s rates. Estimating property value using the direct capitalization model will also be covered in this module.
Land Development
Time:
noon
-
2 p.m.
(Eastern Standard Time)
Date: January 30, 2019
This module explores the Land Development stage. We will review the critical tasks, major risks, key players, and controllable costs of this stage. Students will learn how value is created through constructing infrastructure needed for future building development. In order to better understand the relationship between land developers and building developers, students will learn to estimate building development costs. The special skills section will continue with a review of how to calculate land value, using those cost estimates.
Building Development
Time:
noon
-
2 p.m.
(Eastern Standard Time)
Date: February 6, 2019
This module explores the Building Development stage. We will review the critical tasks, major risks, key players, and controllable costs of this stage. The special skills section will focus on project feasibility by reviewing four components: 1) return on total costs compared to overall market capitalization rate 2) required spread as a measure of riskiness 3) the four step process to estimate a building developer’s justified land price 4) reviewing overall project feasibility with pessimistic, most likely, and optimistic outcome predictions.
Building Operations
Time:
noon
-
2 p.m.
(Eastern Standard Time)
Date: February 13, 2019
This module explores the Building Operations stage. We will review the critical tasks, major risks, key players, and controllable costs of this stage. The special skills section will instruct students how to estimate property value using a mortgage-equity analysis. This will be broken into four parts. First, understanding how an underwriter may analyze a property’s value using debt-coverage ratio, land to value ratio, and borrower’s character. Second, how to estimate mortgage value in terms of annual debt payment and mortgage constant. Third, to estimate the equity value with the after financing cash flow and equity dividend rate. Finally, this Module will conclude with estimating returns after financing.
Building Renovation
Time:
noon
-
2 p.m.
(Eastern Standard Time)
Date: February 20, 2019
This module explores the Building Renovation stage. We will review the critical tasks, major risks, key players, and controllable costs of this stage. Students will learn how renovation of a property may increase the value to better optimize the existing use. In order to better understand how this value is created, the special skills section will focus on estimating the building renovation costs and the coinciding property value after renovation. After a review of those components, we will then discuss how to determine if a renovation project is feasible using overall net disposition cap rate analysis.
Property Redevelopment
Time:
noon
-
2 p.m.
(Eastern Standard Time)
Date: February 27, 2019
This module explores the Property Redevelopment stage. We will review the critical tasks, major risks, key players, and controllable costs of this stage. This is the eighth stage of the real estate development process and completes the development cycle. To complement this stage, the special skills section focuses on the hold versus sell decision. This analysis uses the marginal rate of return and reinvestment rates, first examining how to estimate each, and then the comparison between the two in order to make the decision.
Education Credits
Education Credits
Essentials of the Development Process is approved for the following Education Credit:
16 hours credit toward the Certificate of Advanced Study in Commercial Real Estate Development.
15 AIA/CES Learning Units
16 Professional Development Hours (PDH)
1.6 Continuing Education Units (CEUs)
Learning Objectives
Learning Objectives
By the end of this course, students will be able to:
- Define the seven stages of the real estate development process in terms of
- How value is created
- Key players
- Critical Tasks
- Controllable costs
- Major Risks
- Analyze one example of each stage
- Estimate overall property value, land value, mortgage value, and equity value using direct capitalization methodology
- Understand the relationships among value, income, and capitalization rates
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.