Understanding real estate concepts and analysis
What you will learn
Understand the basic concepts related to real estate
Know the four reasons and considerations related to why people invest in real estate
Be aware of how speculation, risks and historical returns may affect investors and investments
Distinguish between valuation and pricing
Understand and apply the different approaches to real estate valuation
Description
Class Overview:
Β· This class is about the ground rules and concepts in real estate and approaches to real estate analysis
What You Will Learn:
- Understand what is real estate and why most people own them
- How speculation affect real estate markets?
- The four reasons for investing in real estates, and the basic risks associated.
- Consideration to check before investing in real estate
- Distinguish between various real estate products
- Presentation of some historical returns
- Real estate markets, cycles and history
- Time value of money and basic mortgage maths
- Narrative and numbers, how to differentiate between valuation and pricing
- Understanding and applying relative valuation
- Understanding and applying intrinsic valuation, the economic value and the DCF ,ethod
- Rule 72
Why You Should Take This Class:
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- Every household live in a house and the cost of housing represent their major spending and sometimes is their only investment. you want to understand what is real estate? from basis concepts to valuation
- This class will provide you with the skills of an entry level real estate investor
- The professional will learn the basics and the ground rules that sustain real estate valuation
Who This Class is For:
- This class is geared to a broad audience; beginners who want to get the fundamentals and Professionals looking for consolidations
- Prior knowledge required is basic algebra, and ability to use a calculator
Materials/Resources:
- Presentations slides
The project in high level description:
- How to value an income property, a 20 apartment building, using different approaches such as relative valuation, economic value and the DCF method.
English
language
Content
Introduction and concepts
Introduction
What is real estate ?
Real estate markets and speculation
Real estate products
Location, location, location. But Best Uses also
Urban economics and real estate markets
Urban economics – Monocentric model
Urban economics – Dispasquale model
Real estate markets and cycles
Real estate cycles and other cycles
Four Reasons to invest in Real estate
Risks in Real estate
Historical returns in real estate
Basis financial mathematics
Basic financial maths – Time value of money
Basic mortgage maths
Exercise on Mortgage mathematics
Solution to the exercise
Analysis and valuation
Narrative and numbers
Rosen’s Considerations before investing in real estate
Valuation, Pricing and approaches to real estate valuation
Relative valuation
Example and problem
Intrinsic valuation
Example and application of intrinsic valuation
Problem on the Economic value
Example and application on determining the economic value
DCF valuation applied to real estate
Closing remarks
Rule 72
Closing remarks
Documents