Real Estate Investment
This intensive course offers property professionals and investors the opportunity to gain an insight into both the theory and practice of real estate investment. It looks at the nature and scale of real estate investment markets including the effect of cross-border transactions on the domestic market.
As well as addressing technical concerns such as currency risk and taxation the course considers issues such as transparency and dealing with different cultural norms. What are the steps can you take to de-risk your investment? It will include case studies to provide an opportunity to apply the theory and to consider, with fellow participants, some of the practical problems faced when investing internationally.
A large amount of money has and will continue to be made in real estate investments. However, it is no secret that this industry has been hit hard by the global financial crisis and as a result it has become more and more difficult to maximise the opportunities out there.
These challenges mean that real estate investment and financing has changed and still making investments compliant with Islamic financing is even more tough.
It is crucial that investors keep up with the current market changes and challenges to ensure you can exploit the opportunities that are still out there.
This course has been designed providing a practical and comprehensive introduction to the subject.
By the end of this intensive Real Estate Investment course you will have the knowledge and skills to:
• Identify the distinct differences between real estate finance and corporate and project finance Understand all the complex financial, legal and technical terms and issues associated with real estate finance
• Appreciate the current state of real estate financing worldwide
• Acquire practical real estate valuation techniques and investment appraisal methods
• Maximise indirect investment opportunities such as REITS and real estate derivatives
• Thoroughly understand estate financial models for construction and investment.
Course content
• The case for property investment within a multi-asset portfolio. Using portfolio theory to justify investment in property.
• The market for international property investment. The scale and nature of cross border property investment including its impact on the domestic market.
• Risks and returns in international markets. The characteristics of different markets and the drivers of returns.
• Investment process. Evaluating investment opportunities.
• Direct or Indirect investment. Considering the options available for achieving exposure to real estate, including REITS and private investment funds
• Operational challenges. Running your investments including, management, accounting and reporting.
Who should attend
• Investment directors
• Heads of research
• Asset managers
• Analysts
• Fund managers
• Business development managers
• Portfolio managers
• Financial managers
• Lawyers
• Accountants
• Trustees
DAY 1
Just what is Commercial Real Estate?
People versus Contracts.
Why Invest in Commercial Real Estate?
1. Lease Duration.
2. Assignment of Lease.
3. Tenants Earn Their Income On Your Premises.
4. Landlord Pays For Improvements To Commercial Premises.
5. Certainty of Collecting Rent.
6. Upward-Only Rent Reviews.
7. Government Interference.
8. Management Overhead.
The Downside of Commercial Real Estate.
1. Much More Difficult To Acquire Commercial Tenants.
2. Banks Will Lend A Smaller Proportion Of A Commercial Property.
Day 2
The True Value of Real Estate.
How to overcome the disadvantages of Commercial Real Estate.
How to Attract a Tenant.
Who Wants To Run A Funeral Business? Finding A Tenant For A Warehouse In An Oversupplied Market. The Power of the Internet. Many Prospective Tenants Know your Building. Engage a Real Estate Firm or Property Management Company to find a Tenant. Wait for (or Cause) a Zone Change. Split a Single Tenancy into Multiple Tenancies. Consolidate Multiple Tenancies into One. The Ultimate Way to Attract a Tenant.
DAY 3
How to Increase Rental Income (and hence the Capital Value). Helipads. Cell Phone Towers. More Rooftop Antics. Naming Rights. Air Space. Parking. The Humble Web Cam. Interior Remodel. The Triple Win of Alarm Systems. Rent Reviews To Market.
What were the disadvantages of Commercial Real Estate?
Finding Commercial Real Estate. Newspaper Advertisements. Real Estate Firms. The Internet. Keeping Your ‘Eyes Peeled’. Networking. Word of Mouth. Helping Other People. The 100:10:3:1 Rule. Summary.
Analyzing Deals. Due Diligence. Four Questions to Ask about any Commercial Property. Return on Investment. REAP. Property Information. Investor Information. Rent Information. Loan Information. Annual Expenses. Depreciation. Reports. Investment Analysis. Loan Analysis. Graphical Reports. REAP Index. Sensitivity Analysis.
Negotiating Commercial Real Estate Deals.
Financing Commercial Real Estate. Proposal for Finance. Summary. General Description of Property Offered as Collateral. Property Portfolio Statistics and Cash Flows. Statement of Assets and Liabilities. What to include in the Appendix. How to use the Proposal for Finance. Umbrella Loans.
Structuring Commercial Real Estate Ownership.
DAY 4
Managing Commercial Real Estate. Tenant Selection. Rule Enforcement. Rent Reviews. How to Get a Tradesman to Do Your Work First. Accounting. Summary.
How to Beat the Average. Geography. Zone Changes. Proximity to Views. The Center of Town. High Technology. Combining all Methods of Beating the Average.
Raw Land. Best Choice Properties. Spring Mountain Ski Ranch. Getting Back To Commercial Real Estate Investing.
Extraordinarily Odd Commercial Deals. Oil in Them Hills. Marine Farms.
Property Ventures Limited. Five Mile.
Never Sell.
Day 5
Thirteen Golden Rules of Commercial Real Estate Investment.
Golden Rule #1 Risk is equal to Yield.
Golden Rule #2 Safety of Principal.
Golden Rule #3 Control Your Liabilities.
Golden Rule #4 Add Value to a Deal.
Golden Rule #5 A broker or agent must bring something to the deal.
Golden Rule #6 Real Estate is a Long Term Investment.
Golden Rule #7 The Number of Voting Partners is Directly Proportional to the Failure of the Project.
Golden Rule #8 You are Going to be in a Lawsuit.
Golden Rule #9 It Only Takes One Deal To Go Broke.
Golden Rule #10 It only takes one deal to make a Million Dollars.
Golden Rule #11 The Value of a property is limited by the ability of the tenant to pay rent.
Golden Rule #12 Appreciation and inflation are compounded annually.
Golden Rule #13 You cannot give kindness away it is always returned.
REITS
Financing the Deal