Training

Real Estate Finance

ED202 – Real Estate Finance.  The third course in the EDFP certification program presents a detailed look at commercial real estate development.  You will gain insight into the way investors see the real estate market and how to meet their requirements.  Economic development projects are evaluated using the same measuring tools used by lenders, developers and investors.  You will examine the amount and type of incentive financing needed to make a deal happen.  In addition, you will learn about attracting investors for real estate development projects, and the techniques to lower the amount of public subsidy needed.  Topics include:

Real Estate Financing Process

• Calculating project costs
• Projecting the developer’s pro forma
• Determining debt capacity
• Measuring equity attracted
• Quantifying the financing gap
• Closing the gap

Return on Investment

• Cash-on-cash rate of return
• After-tax cash flow rate
• Present value analysis
• Internal rate of return

Appraisals

• The capitalization rate
• Three approaches to value
• Reconciling value

Impact of Taxes on Real Estate Ownership

• Depreciation
• Leverage
• Tax credits
• Taxable gains and losses

Prerequisite:  None