According to an Urban Land Institute report, Commercial properties transaction volumes in the United States are expected to reach $500 billion in 2021. Despite the financial instability of the previous decade, the housing sector in the U.S. alone has come a long way in recent years. The Real Estate Investment and Development online course from Rice University offers an overview of the contemporary property development and commercial real estate industry.
The Balance report says that Residential and commercial building in the United States accounts for 5.8% of GDP, or $1.11 trillion. The Real Estate Investment and Development training unpacks the core skills needed to support informed corporate development and real estate investment decisions by looking at the ecosystem of real estate commercials from a holistic viewpoint.
The Real Estate Investment and Development syllabus teaches students how to evaluate the viability of investment properties, how to assess corporate real estate holdings using ideas and methodologies, and how to manage these assets using standard instruments. Candidates will also learn how to assess and select an economically viable commercial property for their own development.
To qualify for the Real Estate Investment and Development certification from Rice University, Applicants must finish all interactive educational modules as well as complete and submit online projects and assignments. In the classroom, students will be required to engage in live polls, surveys, quizzes, case studies, and other formative activities. Students are required to complete a series of online assignments and projects as well as satisfy all of the conditions defined in the course handbook to get a certification.
What you will learn
Knowledge of Real Estate Sector
After completing the Real Estate Investment and Development course, Students will learn about the financial tools and procedures needed to analyze an investment's viability and gain the ability to assess the commercial feasibility of real estate holdings and improvements. Candidates will also grasp a comprehensive grasp of the commercial property industry.
Finance professionals such as financial analysts, financial planners, and financial advisors are interested in gaining a comprehensive grasp of the real estate sector and learning about the precise financial tools and procedures needed to analyze an investment's viability.
Admission Details
To get admission to the Real Estate Investment and Development online course, follow the steps mentioned below:
Step 1. Follow the given URL to open the official course page (https://www.getsmarter.com/products/rice-real-estate-investment-and-development-online-short-course)
Step 2. Click the ‘Register Now’ button to start the enrolment process
Step 3. Read the terms and conditions, and accept to continue
Step 4. Fill in personal details to make a profile on Getsmarter
Step 5. Provide sponsor details if applicable and fill billing address details
Step 6. Pay the fee amount and start the online class on Getsmarter
The Syllabus
Apply investment decision rules and financial tools to a real estate investment in a single period
Identify the risk-reward trade-off associated with real estate investments
Calculate the returns on a multi-period real estate investment using spreadsheet software
Demonstrate the differences between single-period and multi-period real estate investments
Outline the roles of the space market and the asset market in driving real estate value (cap rates)
Define the space market and the asset market
Show the impact of changes in growth expectations and expected returns on real estate value
Identify different property types in the space market
Discuss the reasons for segmentation in the space market
Analyze the factors that influence the value, risk, and return of real estate investments
Identify the options available to facilitate investment in the real estate asset market
Outline the process to decide whether to proceed with a real estate development
Recall the interactions within the real estate system
Apply real estate market study methods to practical scenarios
Differentiate between the phases of the real estate development process
Identify the team members involved in the real estate development process
Identify the most important negotiable aspects of leases
Recognize that rents are the source of value of the commercial real estate
Classify leases with respect to reimbursable expenses
Apply your knowledge of the cash flow pro forma to practical scenarios
Outline typical cash flow pro forma line items
Argue the benefits of using the DCF method over the direct capitalization shortcut to value commercial real estate
Calculate the appropriate discount rate to use in a cash flow pro forma
Identify the effect of leverage on the risk and return of an investment
Recall terminology relating to leverage
Calculate the cost of capital of an investment using the WACC formula
Critique the use of leverage to finance real estate investments
Contrast the calculation of WACC with that of the IRR in the after-tax cash flow pro forma
Calculate the elements of a preliminary feasibility analysis
Identify the aspects in an initial development feasibility analysis
Articulate the sale of a property as a real estate exit strategy
Assess the effect on the rate of return of development based on absorption rates
Investigate how interim income is affected based on the timing of cash flows
Identify the order in which debt becomes payable in the event of foreclosure
Recall the most common financial instruments used to finance real estate investments
Show how a to ‘promote’ incentivizes the equity partner overseeing the day-to-day management of a property
Assess the desirability of an equity partnership deal
Analyze the aspects that influence an equity partnership
Outline the due diligence process to follow before proceeding with a real estate investment
Recognize that the discounted cash flow model is a tool instead of a final outcome
Show how the market value and investment value of a property are estimated
Recall what you have learned about real estate development and finance
Analyze the most common sources of positive NPV in real estate deals
Instructors
Jesse H Jones Graduate School of Business, Houston Frequently Asked Questions (FAQ's)
1: Is real estate a good investment?
According to a Gallup survey, Real estate is the best long-term investment in comparison with stocks, gold, savings accounts/CDs, mutual funds, and bonds.
2: Is real estate development a good career?
A real estate professional in project development may yield the largest earnings of any commercial property career option, particularly when building commercial property.
3: What are the different types of real estate development?
There are various types of real estate development, some of them are:
Industrial
Commercial
Greenfield
Residential
4: What qualifications will I need to work in real estate?
There is no such requirement of any qualification for working in real estate, but a certificate in real estate will bring up various career opportunities.
5: How long does it take to complete the Real Estate Investment and Development course?
It takes 7-10 hours/week for 8 weeks to complete the Real Estate Investment and Development course.