Program Highlights
Session 1.
Introduction
Overview of real estate markets
Capital sources: debt vs. equity
Key financial concepts
Time value of money (TVM)
Risk and return
Basic TVM calculations
Compounding and Discounting
Compounding Frequency
Session 2.
Financial Leverage: Implications and Examples
Commercial and Residential Mortgages
Similarities and differences
Main underwriting criteria
Mortgage Calculation
Monthly payment
Annual Percentage Rate (APR)
Mezzanine Debt vs. Second Mortgage
Module 3.
Basics of Real Estate Investment
Performance Measures
Internal Rate of Return (IRR)
Cash on Cash
Equity Multiple
Real Estate Valuation
Direct Capitalization Approach
Discounted Cash Flow (DCF) Approach
How Net Operating Income (NOI) is Derived
The Real Estate Pro Forma Defined
Module 4.
Basics of Real Estate Development Finance
Construction Financing vs. Permanent Financing
Financial Analysis of a Development Project
Internal Rate of Return (IRR)
Equity Multiple
Residual Land Value
Investment Return Waterfalls
Course wrap up
University of San Diego
San Diego, California
Tu is the Daniel F. Mulvihill Professor of Commercial Real Estate at the Burnham-Moores Center for Real Estate at the University of San Diego (USD). Tu joined the USD faculty in 2004 and was appointed the academic director of the Master of Science in Real Estate (MSRE) program in 2010. He is also responsible for the curriculum of the undergraduate real estate major.
Tu’s research covers a wide range of topics, including housing valuation, smart growth and the new urbanism, sustainable and green buildings, commercial mortgage-backed securities (CMBS), real estate investment trusts (REITs), multifamily housing, retail shopping centers, and real estate education. He has published in many academic journals and for professional organizations such as the Urban Land Institute (ULI) and the Mortgage Bankers Association (MBA). Tu was a primary investigator of research projects sponsored by government agencies, including the U.S. Department of Energy, the U.S. Environmental Protection Agency, the California Energy Commission, and the District of Columbia Government. He currently serves on the editorial board of the Journal of Sustainable Real Estate.
Tu earned his PhD in business administration from the George Washington University (GWU) in 1999. He received the Chartered Financial Analyst (CFA) designation in 2000 and became a LEED Accredited Professional in 2009. He is ARGUS Software Certified (ASC) for ARGUS Valuation-DCF, ARGUS Enterprise and ARGUS Developer. Before joining USD, Tu taught real estate and finance courses at GWU and California State University and Fullerton.
