CI 101: Financial Analysis for Commercial Investment Real Estate

Learn to make sound commercial investment real estate decisions through the financial analysis concepts and skills taught in this flagship CCIM course. During class, you’ll work with your instructor and fellow students to apply the concepts discussed to your day-to-day activities. Your increased knowl­edge and professional approach to your commercial real estate practice will ensure increased earnings.

 
After this course, you will be able to:
  • Estimate the value of a property using sales comparison approach, direct capitalization, and discounted cash flow analysis.
  • Measure before and after tax investment performance of a property using a variety of measures: gross rent multiplier, cash on cash, capitalization rate, internal rate of return, net present value, and capital accumulation.
  • Understand the components and structure of commercial real estate loans.
  • Use the basic cash flow model to compare commercial real estate investments to other types of investments.
  • Apply commercial real estate investment fundamentals and tax regulations to real-world applications.
Class highlights
Recap investment fundamentals
  • Review investor and investment characteristics.
  • Make investment decisions using investor preferences.
Master the cash flow model; understand time value of money
  • Learn the components of the real estate cash flow model
  • Calculate net operating income (NOI) using source data.
  • Solve time value of money calculations based on real estate situations. 
Make informed financing decisions
  • Target appropriate financing sources.
  • Learn the variables involved in commercial real estate loans.
  • Know the criteria lenders use to evaluate a loan application.
Understand the value of appraisal
  • Distinguish the difference between a property's price, value, and cost.
  • Learn the appraiser's approach to determine value.
  • Differentiate between the sales comparison, cost, and income approaches to establishing market value.
Determine investment value and measure investment performance
  • Determine investment value through the sales comparison approach.
  • Identify the various methods for measuring investment performance, including the cash flow model.
  • Learn to calculate net present value as a measurement of investment performance.
  • Understand the difference between the discount rate and the capitalization rate.
Use your laptop computer
  • Practice analysis techniques using custom designed CCIM Excel®-based programs to solve case study problems
  • Access additional references, tools and interactive business forms included on a customized CD-ROM.
Comprehend tax implications
  • Calculate tax liabilities from "tax world" and "real world" perspectives.
  • Learn the difference between taxable income and cash flow before tax.
  • Shelter taxable income through cost recovery deductions.
 
CI 101 Course Details
 
Length
5 days, 8:30 a.m. - 5:30 p.m.
 
Credit
3 CCIM Core Course Credits
 
Suggested Participants
  • Real estate professionals interested in pursuing the CCIM designation
  • New commercial investment real estate professionals looking to build on their experience in the CCIM Intro course
  • Residential agents who conduct some commercial transactions
  • Anyone interested in moving into commercial investment real estate
  • Real estate investors
Examination
An exam is administered at the end of the course. A score of 70% or higher is needed to receive CCIM course credit.
 
Prerequisite
None
 
Required Equipment
Hewlett-Packard financial calculator. The HP-10B II is highly recommended because of its reasonable costs and because CCIM course materials illustrate the keystrokes of this model.
 
A laptop computer is required. Computer requirements include a CD-ROM drive, Microsoft Excel 2000 or higher, and a web browser, such as Internet Explorer version 6.0 or higher. Some courses may also require that your laptop be equipped with a wireless card. To check the requirements for a specific course and for a complete list of supported web browsers, please visit our technology requirements page.
 

In-Class

Challenge Program
Candidate $1,140 $1,140
Non-Candidate $1,395 $1,395
International Candidate   $825
International Non-Candidate   $975