CAPITAL MARKETS - THE CASE FOR INVESTMENT REAL ESTATE
Despite recent economic headwinds, the capital markets have started to rebound. This creates opportunities for commercial real estate professionals who are prepared to step into the role of capital adviser. In this self-paced, online course, you’ll explore the capital markets from the debt and equity perspectives and apply CCIM models to create tailored, real-world solutions for investors and capital providers.
Disposition Analysis for Commercial Real Estate
One of the most difficult investment decisions is when to dispose of an investment. This course will provide a sound methodology to make the hold versus dispose decision. Participants will first determine the money an investor has invested at any point in time, then make the hold versus dispose decision by analyzing the available alternatives.
Upon successful completion of the course you will be able to:
• Calculate investment yield for the various hold and dispose alternatives
• Make an effective investment decision based on analytics
• Judge portfolio performance based on wealth accumulation
Residential Real Estate Financial Analysis
Residential Real Estate Financial Analysis is designed for residential agents who want to expand their business to include selling single-family homes, condos, duplexes, four-plexes, or small commercial properties to investors. This course is for residential agents interested in the commercial arena, new commercial agents looking to enhance their basic financial analysis skills, and private investors who want to learn basic financial analysis skills to apply to their investment portfolio
Using custom Excel spreadsheets, students learn time value of money (TVM) and the measures of investment performance regularly used to analyze investment properties. Residential Real Estate Financial Analysis serves as your introduction to the CCIM Cash Flow Model and its applications to make decisions based on wise investment fundamentals
The course explains the impact of leverage on an investment and concludes with a case study involving a couple looking to purchase a single-family home as a rental property. Students use the case study to calculate the investment property’s projected revenues and expenses and provide clients with a detailed financial pro forma to make an informed decision on whether to move forward with the purchase.
Upon completion of this course you will be able to:
• Explain the impact of loan to value (LTV) on equity yield
• Calculate investment performance using gross rent multiplier; capitalization rate; before tax cash-on-cash; internal rate of return (IRR); and net present value (NPV)
Improve Retail Investment Return Using GIS
Learn a more effective process for acquiring existing retail properties and maximize the return on investment. This course uses the latest GIS tools including BAO (Business Analyst Online) and ARCGIS. Upon completion of this course you will be able to:
• Delineate primary and secondary trade areas for various retail type stores
• Perform gap analyses for various retail properties
• Analyze consumer retail expenditure patterns and lifestyle data
• Improve maps with traffic counts and annotations
• Establish minimum demographic benchmarks to measure feasibility
• Develop before and after tax financial pro formas
• Price existing improved retail properties
Financial Analysis Tools for Commercial Real Estate
Financial Analysis Tools for Commercial Real Estate provides the commercial real estate practitioner with financial analysis skills and technology needed to succeed in today's market.
This course focuses on key investment fundamentals along with the technology needed to apply these fundamentals to make informed real estate decisions. A case study features a complete before tax discounted cash flow analysis of a suburban office building highlighting various performance measures common in the market place. Upon successful completion of this course you will be able to:
• Apply the CCIM Cash Flow Model to compare yields of three major asset classes (stocks, bonds, and income producing real estate) using a newly developed excel spreadsheet for the analysis.
• Compare and contrast various measures of leverage and their correlation with risk.
• Debunk various industry myths about what constitutes positive and negative leverage.
• Apply tried and true Time Value of Money concepts to debt financing.
• Determine effective cost of borrowed funds considering loan costs.
• Examine various investment performance measures such as Gross Rent Multiplier, Capitalization Rate, Cash on Cash, Internal Rate of Return, and Net Present Value and how they relate to each other.
• Do a complete before tax analysis of an income producing property using a customized Excel workbook for the analysis.
As part of the course you will be provided with customized Excel spreadsheets designed to effectively and efficiently provide investment scenarios for you and your clients. CCIM will award elective credit for this course
Loan Amortization in Commercial Real Estate
Learn to interpret and apply the amortization process most commercial real estate lenders are using today. In this 90-minute online course, participants will examine scenarios in which fully amortized mortgages may have an outstanding balance at the end of the amortization period.
After the course, students receive a customized Excel spreadsheet to conduct calculations, including:
• Traditional monthly payments, interest, principal, and outstanding balance
• Interest, principal, and outstanding balance using a daily interest rate based on a 360-day year with traditional monthly payment
• Effective interest rate when 365/360 U.S. Rule mortgage amortization is used both with and without monthly payment adjustment
Real Estate Risk Analysis
Real estate risk analysis techniques are vital for all business professionals who deal with real estate investment decisions on a regular basis. Does a proposed real estate investment match the yield requirement and risk tolerance characteristics of an investor? How much does debt financing increase the financial risk of an investment? What's the expected return on investment?
After completing this course, students will be able to:
• Define risk as it applies to investment real estate
• Identify risk mitigation strategies
• Quantify risk in various real estate investments
• Apply risk analysis techniques in case-study format
• Use a risk model to determine the potential of achieving the desired investment yield
Commercial Loan Underwriting
This course offers an organized approach to the use of the Real Estate Cash Flow to make loan underwriting decisions.
After completing this course, students will be able to:
• Delineate a formal underwriting process
• Apply the Cash Flow Model to make underwriting decisions
• Use underwriting criteria to establish loan amount