Residential Real Estate Financial Analysis
Residential Real Estate Financial Analysis is designed for residential agents who want to expand their business to include selling single-family homes, condos, duplexes, four-plexes, or small commercial properties to investors. This course is for residential agents interested in the commercial arena, new commercial agents looking to enhance their basic financial analysis skills, and private investors who want to learn basic financial analysis skills to apply to their investment portfolio.
Using custom Excel spreadsheets, students learn time value of money (TVM) and the measures of investment performance regularly used to analyze investment properties. Residential Real Estate Financial Analysis serves as your introduction to the CCIM Cash Flow Model and its applications to make decisions based on wise investment fundamentals.
The course explains the impact of leverage on an investment and concludes with a case study involving a couple looking to purchase a single-family home as a rental property. Students use the case study to calculate the investment property's projected revenues and expenses and provide clients with a detailed financial pro forma to make an informed decision on whether to move forward with the purchase.
Upon completion of this course you will be able to:
- Explain the impact of loan to value (LTV) on equity yield
- Calculate investment performance using gross rent multiplier; capitalization rate; before tax cash-on-cash; internal rate of return (IRR); and net present value (NPV)
Participants receive custom Excel spreadsheets that can be used for future analyses.
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Member: $175 | REALTOR®: $195 | Non-member: $215
Pricing may vary based on location for classroom courses
This class was by far the most useful and best class I've ever taken. I have read at least a dozen books on investment property and own several properties personally. Every book recommends using the same formulas to determine IRR, NPV, cap rates, etc. I have always wanted to somehow put them on a spreadsheet to simplify the process but could never figure out a way to do it and simplify it. You guys have given us an invaluable tool to use to help clients make a sound financial decision with their purchases.
I thoroughly enjoyed the class … it gave me tools to use in the residential as well as the commercial market, and gave insight to looking at properties from another perspective. I'm looking forward to passing on this new gift to my clients.