Professional Development Institute
Cornerstone Course
Fundamentals of Real Estate Finance
March 24-25, June 15-16, July 13-14
Course Overview
This course introduces the basic concepts and “nuts and bolts” tools used by real estate developers, investors, and lenders to analyze the financial feasibility of real estate developments. Designed for those without a financial background, this course integrates finance theory and taxation principles with conventional real estate practices.
The course will begin by explaining property cash flows and how to calculate investment returns, including the preparation of a development budget and property income statement, forecasting Net Operating Income, and how to project net proceeds from sale. Following these topics the course moves into how to evaluate financing structures and the impact of taxation. This segment will specifically look at understanding how much money a lender will lend on a project and why, as well as how to properly calculate taxable income and taxable gain-on-sale.
Although no prior background in finance is required, reading materials and case studies will be sent in advance for attendees to prepare. Attendees are strongly encouraged to bring a financial calculator.
Course Objectives
- Understand the financial infrastructure underpinning real estate development
- Learn how financial drivers such as taxes, returns, and debt motivate stakeholders
- Identify the combination of factors that determine financial feasibility
Companion Courses
Innovative Strategies for Accessing Capital and Fundamentals of Loan Workouts are designed to follow this cornerstone course, allowing attendees to develop specific knowledge on a timely finance topic.
Who Should Attend
The course is aimed at those with a general interest in real estate who are looking to understand how real estate finance works.
Instructor
Tod McGrath is a Lecturer in the MIT Department of Urban Studies and Planning. At MIT he has taught an introductory finance course in the Department of Urban Studies and Planning and the core course in real estate finance at the Center for Real Estate. He is also President of advisoRE, LLC which assists clients with real estate strategy, analytics, and negotiation.
Registration + Fees
Course Fee: $1500.
Finance Series Fee: $2000 (10% discount). The Finance Series includes enrollment in Fundamentals of Real Estate Finance and either Innovative Strategies for Accessing Capital or Fundamentals of Loan Workouts.
The program fee covers tuition, course reader, continental breakfast, and light refreshments. Registration and payment must be made at least one week prior to the course start date. Course information, including the reader, will be made available once payment is received.
To register on-line with a credit card click here. If you would like to pay by bank check or wire transfer, please follow the instructions on the General Information page.
For additional information, please contact:
PDI Program Coordinator
MIT Center for Real Estate
Office of Professional Education
+1 617-253-6193
mit-cre@mit.edu
