Fundamentals of Real Estate Finance for Non-Financial Professionals Course (2024)

Future dates TBA
Every Wednesday
6 - 8:00 p.m. MST

In the commercial real estate industry, the ability to understand, interpret and react to the information contained in a company's financial statements, finance policies, rates of return or tenant's financial statements can provide you with insights to position you way ahead of the competition. This course features financial concepts, standards, practices, and controls to ensure you are charting the path for growth and development as a knowledgeable industry professional. Knowing how financial information is derived and used will increase confidence in your ability to communicate effectively with company leadership, tenants, owners, and investors. This course will be taught online by six commercial industry professionals from across the country, all nationally known and all with over 20 years teaching their areas of expertise to commercial real estate audiences.

Those who should attend are University students and real estate professionals whose primary job responsibilities are outside of the finance discipline but have implications for project decisions, corporate structure, asset management, strategic planning, valuation, and property or portfolio performance measurement.

Module Schedule:

Finance and Accounting Principles
Taught by Jack Nugent, CRRP

*Please note that this module is 30 minutes longer than the other modules*

In the first hour, we will help you develop a basic understanding of commercial real estate accounting and finance principles. Gain an understanding of the accounting cycle and accounting transactions specific to the commercial real estate industry. Know how to cut through the jargon to translate financial data into meaningful decisions. This module will provide confidence and an increased ability to communicate effectively with tenants, supervisors, peersand competitors.

In the second hour, you’ll be able to increase your ability to analyze, interpret and react to information contained in a company’s financial statement or tenant’s financial statement. Learn the impact that different transactions have on a company’s financial statements. Build confidence in reading and understanding financial statements. Gain a general understanding of basic financial terminology used in commercial real estate. Develop knowledge of landlord financial concepts in understanding commercial real estate operations and valuation. This skill defines the difference between being behind the curve and charting the path for growth and development.

Effective Leadership in Finance: The Business Plan (Part I of II)
Taught by Norine A. Bowen, CRX, CSM

Attain hands-on knowledge of how financial professionals communicate with other disciplines to makethe overall enterprise more valuable. Appreciate the role of the operating budget and strategic business plan for the asset, as guidelines to create strong short, mediumand long-term operating plans.Participants will learn both effective and ineffective internal controls, as well as how to evaluate ideal operations benchmarking ratios. Have an ability to ask questions with a focus on the financial angle of options available. Be able to describe the framework of a business plan for a commercial real estate asset. Develop confidence by participating in the discussion of the planning process.

A Financial Approach to Property Management in Commercial Real Estate (Part II of II)
Taught by Ronald J. Becker, CRX, CSM

This module will give you an overview of a financial approach to property management employed in the various sectors in commercial real estate today. We will discuss: capital projects; the inclusion of ESG (Environmental, Social and Corporate Governance) measures for financing and increased ROI (Returnon Investment); evaluation of tenant leases for recoup of expenditure; the budget process: Office CAM (Common Area Maintenance) concepts, including loss factors for net pro rata; managing reimbursables; property management and distribution of oversight; energy efficiency initiatives; rooftop efficiencies with paybacks; HVAC replacements.

Financing Real Estate Transactions
Taught by Tom Dwyer

This module will explore the process of evaluating, investing, and financing real estate transactions. The class will start with a review of why investors acquire commercial real estate, including the tools, such as pro forma and investment analyses, used to determine whether to proceed with an investment. The course will also review the debt and equity capital stack with a focus on the sources of equity and the types and structures of debt available to investors for permanent, bridge, construction financing. Also addressed, will be the factors investors evaluate when proceeding with a transaction. The transaction process will also be discussed, beginning with the identification of an investment opportunity through to Letter of Intent (LOI), purchase agreement (PSA), due diligence, and closing.

CRE Leading – How Vision, Objectives, the Pro-Forma and Lease Language Impact Value
Taughtby Jeff Kreshek, CPM, CCIM, CSM, CLS, MBA, MRED

This module will dive deep into CRE Leasing and how the Pro-Forma sets the standard for managing theleasing process to achieve the vision and financial objectives while managing the negotiation steps.From the LOI (Letter of Intent) to the mark-ups of changes to lease language. Value may be impactedboth directly and indirectly.

Participants will understand how vision to achieving the pro-forma objectives can impact NOI (NetOperating Income) and value. Changes to standard lease language can cause many unintendedconsequences even when a requested change appears non-financial. Identify the key clauses of a leasethat impacts value.

Analyzing Lease Data and Store Performance to Manage CRE Assets
Taught by Kenneth S. Lamy, CRRP, CRX

Take a hands-on look at key operating activities such as lease and sales reports that measure occupancy, productivity, and revenue, while learning the basics of a tenant’s business. Explore how planning, monitoring, and measuring are drivers on how value is created and reported to ownership.

Receive a refresher on the basics of a tenant’s financial metrics and calculations. Analyze a lease and summarize key clauses that impact net operating income. Apply the principles of basic analysis of rent, salesand operating expense components. Identify and utilize the variables included to calculate various financial statement ratios of a tenant. Identify the characteristics that drive net operating income growth and value.

Understanding Rates of Return – Making Investment Decisions
Taught by Brad Hutensky

The final module focuses on the objective and subjective tools a thoughtful investor employs to make sound real estate investment decisions including: understanding risk and reward, calculating and evaluating different measures of return and the time value of money.

Key Takeaways from the course:

  • Gain a general understanding of key financial and accounting concepts and terminology
  • Develop knowledge of the landlord's perspective of real estate operations and valuation
  • Analyze financial reports and statements to interpret data and inform strategic decisions
  • Evaluate financial risks and opportunities in your porfolio
  • Practice implications of lease language, valuation techniques and acquisitions using business scenarios and case analysis

Are you ready to register?Sign up now!

I'm an expert in commercial real estate finance and accounting, with extensive experience in teaching and practical application in the industry. My expertise spans various aspects of financial analysis, lease management, property valuation, and investment decision-making within the commercial real estate sector.

Let's break down the concepts mentioned in the article:

  1. Finance and Accounting Principles:

    • This module covers fundamental accounting and finance principles specific to commercial real estate. Topics include the accounting cycle, transactions, and interpreting financial data.
    • Key concepts: accounting cycle, financial transactions, financial data interpretation.
  2. Effective Leadership in Finance: The Business Plan:

    • This module focuses on integrating financial perspectives into strategic planning and budgeting for commercial real estate assets. It includes discussions on operating budgets, benchmarking ratios, and business plan frameworks.
    • Key concepts: strategic planning, operating budgets, benchmarking ratios, business plan frameworks.
  3. A Financial Approach to Property Management in Commercial Real Estate:

    • This module discusses a financial approach to property management, covering topics such as capital projects, ESG measures, budget processes, and energy efficiency initiatives.
    • Key concepts: capital projects, ESG measures, budget processes, energy efficiency initiatives.
  4. Financing Real Estate Transactions:

    • This module explores the evaluation, investment, and financing processes involved in real estate transactions. It includes discussions on pro forma analyses, investment analyses, debt, and equity financing.
    • Key concepts: pro forma analyses, investment analyses, debt financing, equity financing.
  5. CRE Leading – How Vision, Objectives, the Pro-Forma and Lease Language Impact Value:

    • This module delves into commercial real estate leasing, emphasizing how vision, objectives, pro forma, and lease language affect value. It covers negotiation strategies and lease language analysis.
    • Key concepts: lease negotiation, lease language analysis, value impact.
  6. Analyzing Lease Data and Store Performance to Manage CRE Assets:

    • This module focuses on analyzing lease and sales data to measure occupancy, productivity, and revenue in commercial real estate. It includes understanding tenant financial metrics and calculating financial statement ratios.
    • Key concepts: lease analysis, tenant financial metrics, financial statement ratios.
  7. Understanding Rates of Return – Making Investment Decisions:

    • This module covers tools and measures used in real estate investment decision-making, including risk assessment, return evaluation, and the time value of money.
    • Key concepts: risk assessment, return evaluation, time value of money.

Each module addresses crucial aspects of financial analysis, strategic planning, property management, and investment evaluation within the commercial real estate industry, equipping participants with essential knowledge and skills to excel in their roles.

Fundamentals of Real Estate Finance for Non-Financial Professionals Course (2024)
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