Valuation: Deriving the market value of an income property


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:

ยท 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:


Subscribe to latest coupons on our Telegram channel.

  • 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