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HOME /COURSES > ASM600 - Investment Real Estate Financing and Valuation - Part One, Two and Three

ASM600 - Investment Real Estate Financing and Valuation 

The course is designed to help students determine the performance of real estate assets using a variety of measurement tools and approaches. Students learn to utilize financial tools to help build value and produce higher revenue for business holdings. 

The course features in-depth discussions and hands-on application of concepts used to perform multiple cash flow analyses. On the final day of the course, students will apply their new knowledge to real-world investment scenarios.  
 

Course Content

Part One

Economics of Real Estate Investment

  • Owner’s goals and objectives    
  • Business and real estate cycles
  • Macroeconomic effects on real estate 
 

Sources of Financing

  • Various sources of real estate financing
  • Lender evaluation methods
  • Loan package components
 

Loan Calculation

  • Different types of loans
  • Debt service calculation
  • Interest rates
 

Loan Analysis

  • Loan-to-value
  • Debt coverage ratio
  • Leverage applications
 

Property Valuation and Capitalization Rates

  • Appraisal methods
  • Capitalization rate calculations
  • Mortgage equity analysis
  • Equity residual model
 

How You Will Benefit

  • Produce higher revenue for your portfolio despite fluctuations in the financial and real estate markets
  • Negotiate optimal financing packages that will maximize your cash flow
  • Boost client satisfaction levels with accurate property valuations and risk assessments
     

Part Two

The Time Value of Money

  • Owner’s goals and objectives
  • Time value of money (TVM) components
  • TVM applications
 

Discounted Cash Flow, Valuation and Investment Return

  • Discounted cash flow (DCF) analysis vs. capitalization
  • Market value calculation
  • Investment value calculation
  • Different measures of investment return
 

Mid-stream Analysis

  • Reasons for conducting a mid-stream analysis
  • Mid-stream analysis calculations
 

Discounted Cash Flow and Lease

  • Financial impact of lease concessions
  • Lease proposal comparisons using DCF analysis
 

How You Will Benefit

  • Enhance the long-term financial outlook of your portfolio
  • Secure the future prosperity of your business
  • Shape leases to your advantage and generate higher returns for your clients
 

Part Three:

Taxation

  • Overview of taxation and its impact on real estate investing
 

Practical Applications and Analysis of Case Studies

  • Owner’s goals and objectives
  • Highest and best use for a property
  • Property performance measurements based on cash flow analysis
  • Evaluation of property alternatives
 

How You will Benefit

  • Maximize the value of your portfolio and consistently deliver forecasted returns for owners and investors
  • Strengthen client relationships and win new business with newly developed financial acumen
 

HP10BII Financial Calculator Required:

The HP10BII financial calculator is required for this course. Course materials illustrate keystrokes for this calculator only. Students taking this course are expected to have a working knowledge of the basic operations and functionality of the calculator. Students are encouraged to download the interactive HP10BII Financial Calculator Tutorial and the HP10BII Financial Calculator Quick Reference Guide and review it prior to taking this course.
 

Laptop Computer Strongly Recommended

In addition to the use of the calculator, course materials include a review on how to use the IREM Financial Analysis Excel® Spreadsheet to facilitate hands-on learning in the classroom. Students who wish to maximize their course experience are advised to bring a laptop to class.

 

Prerequisite Courses:

FIN402 - Investment Real Estate - Financial Tools

 

Please note: taking FIN402, ASM600, and MPSAXM in consecutive order is strongly recommended.

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