Course Outline

101. How to Analyze & Value Income Properties. Video Time: 3-1/4 hours

Learning objectives

This video introduces the fundamentals of real estate investment analysis and discusses the issues, complexities and dangers involved in listing and selling commercial properties.

Specific objectives are to:

1. Provide a good understanding of the basic financial measures used to evaluate and determine the value of rental apartment buildings and commercial properties.

2. Explore the advantages and disadvantages of the most used financial measures.

3. Demonstrate how to analyze and adjust Income & Expenses Statements and what expenses need to be included when using Cap Rates to determine the property value.

4. Provide an in-depth overview of the capitalization rate as it is used in commercial real estate, and to explain the factors that influence the Cap Rate

5. Show how to analyze apartment and commercial buildings and how to re-do the financial statements so that they more realistically reflect the financial performance of the buildings.

6. Provide an introduction to risk analysis and financial ratios for measuring risk

7. Show how to read a lease and discuss important terms / clauses in the lease that can affect the value of a commercial building

8. Provide an understanding of the weakness of using Cap Rates with a brief introduction to long term real estate investment analysis

9. show how to identify properties that may be hard to sell because of income tax consequences

10. Show the importance of having a professional engineer perform an assessment of the building on behalf of a buyer, by using real-world examples

Skills and benefits obtained from the course

1. How to analyze and restructure “Income & Expense Statements” so that they more realistically represent the financial performance of the property

2. Use the various financial measures such as the Gross Income Multiplier, Cap Rate, Cash on Cash, Default Ratio, Debt Coverage Ratio etc., to analyze and value an income property and appreciate the limitations of these simplistic approaches to analyzing and valuing income properties

3. Understand the different types of leases and rent

4. Carryout risk analysis

5. Determine potential loan amounts

6. Communicate effectively with other participants in the commercial real estate arena such as realtors, investors, lenders and mortgage brokers, appraisers etc.

7. Understand how important it is for the buyer of income properties to obtain professional engineering, tax and legal advice

The knowledge and skills developed during the video will improve your ability to understand, analyze value, finance and manage income properties.

102. Real Estate Investment Analysis. Video Time: 3-1/4 hours

Learning objectives.

The overall objective is to provide an understanding of how to carry out in-depth real estate analysis investment analysis and how to apply investment analysis techniques to different types of properties or types of real estate.

Topics

1. The significant weaknesses in using Cap Rates to make real estate investment decisions compared to the discounted cash flow approach. Examples illustrating the disadvantage of the Cap Rate approach to establishing value

2. Time value of money concepts. The Internal Rate of Return (IRR) and Net Present Value financial measures and discounted cash flow analysis

3. Steps involved in carrying out long term real estate investment analysis and discounted cash flow analysis

4. Real estate taxation. Overview

5. Impact of financial leverage on the investment return and investment risk

6. How to use real estate analysis techniques to help list, sell, finance, lease or invest wisely

Skills and benefits

• How to:
• Carry out and apply in-depth real estate analysis to different types of income properties
• Determine the value of an income property using the discounted cash flow analysis approach
• Assess the investment risk
• Financially structure a real estate transaction using creative financing
• Identify income properties that are hard to sell because of the tax implications on sale or mortgage restrictions and penalty costs that make it difficult for the owner to sell the income property

The knowledge and skills developed will improve your ability to analyze, value, list, sell lease or manage income properties and how to use investment analysis techniques to put deals together.

103. Development Analysis and Valuing Land Time. Video 4-3/4 hours

Learning Objectives.

The overall objective of the video is to provide an understanding of:

1. how to carry out development analysis to determine land values for unit projects such as land subdivisions and condominium projects, and for income properties such as office buildings

2. the issues and difficulties associated with determining land value

Topics

1. Issues related to using simplistic approaches, such as $ per Acre or Sq. Ft to value land

2. The backdoor or land residual approach to valuing land

3. Factors that affect land values. Examples are illustrated using photographs
   • Soil conditions
   • Architectural, design & zoning constraints
   • Market and design considerations

4. Development Analysis Case Study. Condominium development

5. Development Analysis Case Study. Retail center development

6. Sensitivity & Risk analysis. What numbers have the biggest impact on the development profit?

7. Analyzing a “Mixed” unit and income property development. Case study

8. Income property development. Sell or hold analysis

9. Renovation analysis

10. Profitability analysis and ratios & assessing the development risks

11. Quick Proforma approach versus detailed monthly cash flow development analysis

12. Construction loan requirements

13. Offer to Purchase versus Options. Pros & cons.

14. Tips for creating an offer & keeping the offer together

15. Land assembly and analyzing sites with assembly potential

Skills and benefits obtained from the video

1. How to analyze development sites and determine land values using the development analysis approach

2. Appreciate the difficulties and uncertainties in determining land value

The knowledge and skills developed during the video will improve your ability to value, list, finance, and sell development sites or manage development projects.

Video: 201. Applied Real Estate Investment & Lease Analysis. Video Time: 4-1/2 hours

Learning objectives.

The overall objective of the video is to provide an understanding of how to carry out in-depth real estate analysis investment and lease analysis, and how to apply investment analysis techniques to different types of properties or types of real estate decisions.

Topics

1. Investment analysis. Getting started. Questions to ask.

2. Applying the Internal Rate of Return (IRR), Net Present Value (NPV) and Modified Internal Rate of Return (MIRR) to real estate investment decisions

3. Issues and challenges related to calculating the Internal Rate of Return (IRR)

4. Exploring potential financing now and in the future

5. Risk analysis and management

6. Real estate analysis. Tips and tricks

7. Lease analysis and lease comparisons from a landlord and tenant perspective

8. Lease negotiations. Case study

9. A framework for exploring creative financing explained using a case study

10. Buy versus Lease analysis. & Hold versus Sell case studies

11. Valuing land leases

12. Replacement reserve planning

Skills and benefits obtained from the Video

How to:

1. carry out and apply in-depth real estate analysis to different types of income properties

2. determine the value of an income property using the discounted cash flow analysis approach

3. analyze and manage risk

4. develop presentation packages and executive summaries

5. financially structure a real estate transaction using creative financing

6. perform lease comparison analysis from a landlord or tenant perspective

7. make Buy versus Lease and Hold versus Sell decisions

8. develop replacement reserve schedules

The knowledge and skills developed will improve your ability to value, list, sell, lease, finance or manage income properties and how to use investment analysis techniques.

As an investor, how to determine the value based on your desired return and make wise investment decisions.

Video: 202. Creating & Profiting from Joint Ventures. Video Time: 3-1/4 hours

Learning objectives.

This Video assumes that those attending understand the basics of real estate investment analysis or have completed the course “201. Applied Real Estate Investment & Lease Analysis”.

The overall objective of the Video is to provide an understanding and present a framework for analyzing and structuring joint ventures using case studies.

Topics

1. Provide an introduction to the nature and characteristics of joint ventures

2. Show how to use joint ventures to structure deals and earn commissions and/or profits

3. Provide a universal framework for thinking about, analyzing and structuring joint ventures

4. Demonstrate joint venture creation and analysis using case studies and solution guides

5. How to analyze complex investments such as syndications, equity participation deal and waterfall distributions

Skills and benefits obtained from the Video

The knowledge and skills developed will improve your ability to analyze and structure joint ventures by providing a framework for analyzing joint ventures and give you lots of ideas for putting joint ventures together.

Video: 203. Office, Retail and Industrial Leasing Time: 3 hours

Learning Objectives.

To provide a comprehensive understanding of:

1. The leasing process and terms used in leasing

2. How to read a lease and what to look for in a lease

3. The differences between the different kinds of leasing markets

4. How tenants go about choosing a location and space

5. What question to ask the landlord and tenant

6. Some of the complex issues involved leases and lease negotiations

7. Why leases are often complex, lengthy documents

8. How to carry out lease comparison analysis from a landlord & tenant perspective

Topics

Following is a summary of topics that will be covered.

1. Overview of landlord and tenant leasing objectives

2. Tenant compatibility considerations and issues

3. Leasing characteristics by different types of properties

4. The leasing process and documents

5. Types of Leases
   • Gross & Modified Gross Leases, Indexed lease, Triple Net Lease
   • Expense Caps and Stops and Rent Caps</li

6. Types of Rent
   • Base Rent & Additional Rent or Recoverable Expenses
   • Free Rent
   • Percentage Rent

7. Areas and Area Measurement
   • Rentable and Usable Areas and Load Factor
   • Space Measurements and the BOMA Standards
   • How to measure different types of properties
   • Issues related to measuring space
   • Leasing new space. Tenant Improvements and build outs

8. Assignment & Subletting

9. Operating Expenses, Recoverable Expenses and related issues and considerations

10. Renovating and subdividing space including structural considerations

11. Lease Comparison Analysis and the Net Effective Rent from landlord & tenant perspective

12. Case Study. Comparing three different lease arrangements

13. Valuing ground leases.

14. Blending and extending a lease

15. Impact of leases on the property value and marketability

16. Tips for reading leases

17. Leasing as a career

Skills and benefits obtained from the video

1. Increased knowledge of lease terms and the leasing process

2. The differences involved in leasing office, industrial and retail space

3. A deeper understanding of the complex issues related to leasing

4. How to compare leases from a landlord or tenant perspective

The knowledge and skills developed during the video will improve your ability to analyze and negotiate and leases from a tenant or landlord perspective.