Professional Development Institute
Executive Level
Advanced Real Estate Finance
October 27-28 2009
Course Overview
The ongoing turmoil in global financial markets has severely impacted credit markets and jeopardized access to the financing needed for real estate acquisitions and development. A thorough understanding of real estate finance will enable real estate professionals to take advantage of the rapidly changing sources of capital available to them. This course will introduce participants to the concepts and institutions of real estate finance beyond that offered in an introductory course and will provide economic, policy, and institutional insights into recent and future trends in the financing of real estate projects.
The course will discuss:
- Sources of capital: What are the sources of capital available to finance residential and commercial real estate projects? More importantly, how will real estate be financed in the future? Central to answering these questions is determining whether a particular source of capital is appropriate for a particular real estate project.
- Securitization: The pooling and subsequent tranching of mortgage-related debt instruments has been an important source of real estate capital until recently. Knowledge of the securitization process is critical to a real estate professional’s ability to understand the role of capital markets as a source of financing. The recent troubles with securitization provide valuable clues as to the future role of capital markets in real estate finance.
- Capital structure: A critical question facing today’s real estate professional is how much debt should be used to finance a real estate acquisition or development. To answer this question requires an understanding of the advantages and disadvantages of debt and various debt instruments.
- Cyclicality of real estate markets: The financing of real estate cannot ignore the pronounced cyclicality of real estate markets. Understanding this cyclicality allows for the adoption of financing plans that anticipate real estate market trends.
Course content will be delivered through lectures, case studies, and industry guest speakers, with small-group work to reinforce learning. Reading materials and case studies will be sent in advance for attendees to prepare.
Course Objectives
- To identify and explore possible new sources of real estate capital
- To enhance a student’s understanding of the securitization process
- To provide students with the skill-set and tools needed to assess and develop a real estate project’s capital structure
Who Should Attend
This course is targeted to real estate professionals with significant industry experience. Students are also assumed to have a solid understanding of introductory real estate finance. Advanced real estate finance is intended to be interactive in nature and students are encouraged to share real life examples that may inform class discussion.
Instructor
Walter Torous is the Lee and Seymour Graff Endowed Professor at the UCLA Anderson School of Management and the Founding Director of the Richard S. Ziman Center for Real Estate. He teaches classes on corporate finance, real estate finance, and securitization. He regularly consults with both private firms and government agencies. During the 2009-2010 academic year, he is a Visiting Professor with the MIT Department of Urban Studies and Planning.
Speakers
- Michael Acton, AEW Capital Management
- Sally Gordon, BlackRock
- David Levy, CFA, MAI
- Thomas Park, TIAA-CREF
Registration + Fees
Course Fee: $2000.
October Series Fee: $3,825 (10% discount). The October Series includes enrollment inFundamentals of Loan Workout (October 26), Advanced Real Estate Finance (October 27-29), Assisted Living: Today (October 29), and Assisted Living: Tomorrow (October 30)
Finance Series 5: $2,475 (10% discount). The Finance Series includes enrollment in Advanced Real Estate Finance and the 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
