Real Estate Finance & Investment

INTRODUCTION
The capital allocations to real estate have increased significantly in the last decade due to lower bond yields. For institutional investors, fund managers and entrepreneurs alike, real estate investments have become a path to wealth creation and a source of portfolio diversification for a wide range of investment entities. Global economy and financial market disruption often present a challenge for real estate industry including fair valuation of real estate assets, decision making process and tenant whose ability to pay rents has been impeded.

OBJECTIVES
By the end of this Real Estate Finance and Investment training course, participants will be able to:
• Understand the real estate sector.
• Different types of investors in real estate business
• Types of debts available for commercial and individuals
• Applying traditional finance and investment theory to real estate business.
• Constructing portfolios using REITs and Equity.
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COURSE OUTLINE
DAY 1
• An international overview of real estate market.
• Banking and real estate.
• Fund managers.
• Valuation standards.
• Investment value.

DAY 2
• Potential funding sources for real estate
• Long term source of finance
• Short term source of finance
• Evaluation of the types of finance in real estate
• Equity finance
• Debt finance available for real estate

DAY 3
• The principal of cash flow forecast
• Evaluating real estate investment decision using:
• Accounting Rate of Return (ARR)
• Net Present Value (NPV)
• Internal Rate of Return (IRR)

DAY 4
• Investment opportunities in real estate.
• Real estate required rate of return.
• Sustainable investment strategies.
• Risk and return of real estate investments.
• Portfolio theory application in real estate business.
• Estimation of systematic risk for real estate firms.

DAY 5
• Ratio analysis for real estate business.
• Management’s point of view.
• Owners’ point of view
• Lenders’ point of view
• Ratios as a system – pyramids of ratios