Identify the methodologies used to calculate the primary components of return in income-producing real estate.
Establish reasonable financial return targets for each of these primary return components.
Determine the level of debt financing that a project is likely to achieve based upon applicable underwriting criteria.
Prepare simple operating pro forma, capital cost pro forma, and sources and uses of funds statements.
Understand the most common real estate industry measures of return and the relative importance of each measure.
Understand the significance of Purchase, Operating, and Exit Cap Rates and understand a simple Waterfall/Promote structure.
We will focus on real estate finance fundamentals that are important to either develop and/or invest in varied types of real estate assets, or to enhance your ability to understand how real estate finance fundamentals relate to your primary role as a member of a real estate development or investment team, all with emphasis on understanding how real estate value is created, measured, and managed.
