Expect a lively and engaging classroom experience! Key topics we will cover include: establishing realistic financial objectives; identifying and calculating the primary components of return in income-producing real estate including cash flow, tax benefits, and futures; preparing operating and capital cost pro formas and sources and uses of funds statements; understanding debt-financing underwriting basics (net operating income, debt service coverage factors, annual constants, debt/equity ratios, and other lender underwriting requirements); appreciating the importance of achieving positive financial leverage; calculating and interpreting standard industry measures of return: Return on Total Asset Cost (Cap Rate), Cash-on-Cash Return, leveraged and unleveraged Net Present Value (NPV) and Internal Rate of Return (IRR); and Equity Multiples.

Other topics will include preparing sensitivity analyses and understanding simple Waterfall/Promote structures (the priority and amount of cash flow distributions to the respective financial and operating partners in a real estate joint development or investment joint venture). We will teach and discuss these principles using examples drawn from a wide variety of asset classes and locations worldwide.