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Course Description

While all commercial real estate transactions first require understanding the merits of a particular location and property, investors also pay close attention to the capital stack and the equity at risk. In fact, few deals are done with equity capital only. Using external financing to close on certain transactions is often motivated by risk-adjusted target performances. When done carefully, investors can take advantage of the cheaper cost of capital to potentially magnify their returns positively.

In this course, you will expand on the basic underwriting model for property acquisition to incorporate financial leverage and scenario analysis. The first step is to take a precise look at how the most common types of mortgages work, noting that financing and capital structure decisions are far more complex than just building amortization tables. They include crucial details that can lead to a deal’s success or failure and have important ramifications down the road. To apply your learnings on the optimal balance in your deal structure, you will model a variety of scenarios across many loan types while keeping the element of uncertainty in the forefront. You will acquire a what-if mindset through this process, helping you identify the optimal capital structure given the deal you are contemplating. With this tool combining your forecasting intelligence with a strategic choice, you will be set up to expand your knowledge in new ways and grow in your role and beyond.

You are required to have completed the following courses or have equivalent experience before taking this course:

  • Discounted Cash Flows in Real Estate
  • Unlevered Real Estate Acquisitions

Faculty Author

Daniel Lebret

Benefits to the Learner

  • Build amortization tables for different types of loans
  • Model a variety of scenarios to quickly assess the impact of changing economic states of the world
  • Conduct a sensitivity analysis to quickly evaluate economic and financing scenarios
  • Identify and recommend the best debt financing to close a particular transaction using variables based on risk-adjusted returns

Target Audience

  • Acquisition and asset managers
  • Financial analysts
  • Real estate investors
  • Real estate development professionals
  • Individuals looking to invest in commercial real estate
  • MBA students
  • City and regional planning professionals

Accrediting Associations

Applies Towards the Following Certificates

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Enroll Now - Select a section to enroll in
Type
3 week
Dates
May 01, 2024 to May 21, 2024
Total Number of Hours
15.0
Course Fee(s)
Standard Price $1,199.00
Type
3 week
Dates
Jun 26, 2024 to Jul 16, 2024
Total Number of Hours
15.0
Course Fee(s)
Standard Price $1,199.00
Type
3 week
Dates
Aug 21, 2024 to Sep 10, 2024
Total Number of Hours
15.0
Course Fee(s)
Standard Price $1,199.00
Type
3 week
Dates
Oct 16, 2024 to Nov 05, 2024
Total Number of Hours
15.0
Course Fee(s)
Standard Price $1,199.00
Type
3 week
Dates
Dec 11, 2024 to Dec 31, 2024
Total Number of Hours
15.0
Course Fee(s)
Standard Price $1,199.00
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