Real Estate
Investing & Analysis Certificate Program

Module 1 serves as the cornerstone of the learning journey, offering an in-depth exploration of real estate as an asset class, the operational dynamics of real estate investment firms, and how to create value in real estate.

• History & evolution of real estate as an asset class
• Common investment strategies & property types
• Various real estate stakeholders & their respective roles in investments
• Real estate within the private market and alternatives ecosystem

Module 2 provides a comprehensive overview of essential components in real estate investment, focusing on the investment approach, valuation methods, and various frameworks utilized in the industry.

• Foundations of real estate finance: NOI, cap rates, value, and returns
• Introduction to valuation methods: income cap, DCF, comparables, and replacement cost
• What is a real estate pro forma
• Measuring investment returns

Module 3 delves into the intricacies of real estate structuring and financial engineering, focusing on common capital structures, tax considerations, and performance incentives within cash flow waterfalls.

• Capital structures and leverage
• Tax benefits and depreciation
• Joint venture structure, management responsibilities, & the GP/LP relationship
• Cash flow waterfalls & performance incentives

Module 4 immerses participants in the real-world intricacies of the real estate deal process. The focus is on bringing to life the key stages of an investment, from sourcing to business plan execution to disposition.

• Anatomy of the deal process: stages, workstreams & responsibilities
• The role of third parties & their functions
• Deal docs: NDAs, teaser, OMs, LOIs, PSAs, & loan document
• Key terms, due diligence items, and points of negotiation in an acquisition

Module 5 begins participant’s deep dive into real estate financial modeling. This module explores how real estate professionals analyze and underwrite investment opportunities, with a specific focus on modeling property-related cash flow proformas.

• Property level financial modeling fundamentals & best practices
• Multifamily, industrial, retail, and office operating cash flow builds
• Capital expenditure & other non-operating cash flow builds
• Defining & calculating net operating income (NOI)
• Acquisition and disposition values (direct capitalization method)

Module 6 continues the focus on real estate financial modeling. Students deepen their understanding of investment underwriting, specifically focusing on financing and capital structures. Participants explore modeling debt structures and levered cash flows, gaining insights into the intricacies of financing and its impact on investment returns.

• Debt structures & levered cash flows
• Investment returns - internal rate of return, multiple on invested capital, cash-on-cash yield, yield-on-cost
• Joint venture waterfalls & promote structures
• Acquisition vs. development models
• Using an investment model to inform investment decisions

Module 7 delves into the strategic thinking processes employed by real estate professionals when evaluating investment opportunities, focusing on both macro and micro market analysis. Market dynamics are explored, including demand drivers, supply-side considerations, and the impact of volatility on investments.

• Supply & demand dynamics
• Analyzing economic data
• Market rents & forecasting growth
• Market analysis

Module 8 continues the focus on strategic thinking processes employed by real estate professionals when evaluating investment opportunities, focusing on property-level risks. Emphasis is placed on risk management and the concept of risk mitigation, utilizing leases and mortgages to align risk and return dynamics with investor requirements.

• Identifying & mitigating micro risk factors
• Identifying & mitigating macro risk factors
• Balancing risk & return

In the final module, participants are immersed in the practical application of the entire real estate investment process, covering transaction structuring, investment underwriting, due diligence, and analysis.

• Partnership structure & execution plan
• Due diligence
• Underwriting & financial analysis (upside, base, and downside cases)
• Investment highlights & risks
• Investment recommendation