12:00 p.m. – 2:00
p.m. Eastern
Developed for non-finance professionals, this new ULI online
program will provide a broad and solid introduction to the basics of real
estate finance and investment. Held over four sessions, the course will begin
with a general overview of real estate investment and financing decisions. From
there the program will progress discussing basic analytical tools and
performance measures. The workshop will acquaint students with fundamental real
estate finance terms and concepts including: time value of money, capital
stack, risk-return tradeoff, and financial leverage. Using examples and Excel
spreadsheet, it will demonstrate important calculations in real estate finance
and investment, such as internal rate of return (IRR), mortgage payment and
loan balance, and property valuation. This course is recommended for
non-finance real estate professionals who wish to gain a basic understanding of
real estate finance that also will help them get more out of their professional
interactions.
Program Highlights
Module 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
-Financial
functions in Excel
Module 2.
•Financial leverage: implications and examples
•Key features of commercial mortgages
•Mortgage Calculation
-Monthly
payment and Annual Debt Service
-Outstanding
Loan Balance
-Annual
Percentage Rate (APR)
•Mortgage underwriting
-Loan-to-value
ratio
-Debt
coverage ratio
-Debt
yield
•Mezzanine Debt vs. Second Mortgage
Module 3.
•Basics of Real Estate Investment
•Net operating income (NOI) and Pro Forma
•Real Estate Valuation
-Direct
Capitalization Approach
-Discounted
Cash Flow (DCF) Approach
•Performance Measures
-Net
Present Value (NPV)
-Internal Rate of Return (IRR)
-Cash on Cash
-Equity
Multiple
•Introduction to Investment Return Waterfalls
Instructor
Charles Tu
Professor of
Real Estate
Burnham-Moores
Center for Real Estate
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. In
addition to teaching courses, Tu coaches student teams in local and national
competitions. USD MSRE students won six
first-place and two second-place victories in the ARGUS University Challenge in
the eight years the event was held.
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). 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.
Registration
Members: $395
Nonmembers: $495
Govt./nonprofit member: $350
Govt./nonprofit nonmember: $465
Seminar | Product |
Introduction to Real Estate Finance and Investment Session 1 | Live Event + Archive |
Introduction to Real Estate Finance and Investment Session 2 | Live Event + Archive |
Introduction to Real Estate Finance and Investment Session 3 | Live Event + Archive |
Introduction to Real Estate Finance and Investment Session 4 | Live Event + Archive |