Real Estate Finance and Investments
With the Certificate in Real Estate Finance and Investments, students will be well prepared to confidently pursue a career in commercial lending and real estate finance.
Real estate markets are now highly competitive and companies often rely on well-trained workers capable of making investment decision in an environment of complexity.
For investors, intermediaries and other real estate players to remain successful, building experience in an exceedingly specialized market has become a must.
With this Certificate, you will receive an excellent training that allows you to learn thoroughly the new trends and techniques in the field of real estate finance and investments.
Learn to use Excel to undertake pro-forma analysis and practice the different methods of valuing a revenue generating property
Understand the different mortgage types available to investors and learn how to design them
Calculate mortgage debt with a prepayment option
Master the best ways of refinancing debt
Recognize the role of debt within the real estate industry, as well as its benefits and risks
Learn how the different capital structures of real estate assets are determined and calculated
Learn how to calculate cash flows of real estate assets with varying capital structures and scenarios using real estate "waterfall" spreadsheets on Excel
Model sophisticated real estate “waterfall” spreadsheets with Excel for a variety of different capital structures and scenarios
Run financial feasibility analysis for a real estate development
Assess the impact of financial and fiscal subsidies to the financial feasibility of an affordable housing development
Understand the real estate sector by looking at the economic forces that drive real estate business cycles
Introduction to Real Estate Valuation
In this module, we will review the basic formulas and procedures for converting typical real estate future cash flows and risk patterns to present value. In doing so, we will use Excel for finding numerical solutions.
Real Estate Equity Investments & Capital Structure
This module moves beyond debt to consider sophisticated capital structures with multiple layers of debt and equity. We will extend our benchmark model to construct “waterfalls” Excel spreadsheets to model a variety of situations, such as private equity investment. At the end of this module, students will be able to create sophisticated Excel spreadsheets and run sensitivity analyses covering the whole spectrum of real estate finance decisions.
Commercial Mortgage Debt
The real estate debt market is a large, deep and sophisticated source of funding that requires a rigorous modelling and quantitative analysis. In this module, we will introduce the basic concepts and methodology useful for dealing with real estate debt from the investor’s perspective. We will use Excel to compute mortgage payments and balances for a variety of loan types, compute mortgage yields to evaluate mortgages, and model the implications of refinancing and prepayment decisions.
Affordable Housing Development
This module covers the financial feasibility analysis of affordable housing development and the implications of using fiscal subsidies such as the Low Income Housing Tax Credits (LIHTC) and the Tax Incremental Financing (TIF).
Real Estate Business Cycles
This module is complementary to the core CREFI modules 1, 2, and 3. It is intended to provide the student with a wider perspective on the real estate sector by looking at the economic forces that drive real estate business cycles. Topics include mortgage debt cycles, real estate induced economic recessions, mortgage markets and wealth inequality, and the financial engineering of Mortgage Backed Securities.