Available Classes

Overview of
Commercial RE for
Residential Agents

 

One Day Overview Class

 

LOCATION: Check for Location

DATE: TBD

TIME: TBD

 

I. Commercial RE Terminology & Formulas

A. Types of Commercial RE
B. Some important definitions
C. Income & Expenses Sources
D. Simple calculations in investment properties
E. The Concept of Leverage
F. Review Questions & Answers

 

II. Methods of  Valuations

A. Gross Rent Multiplier
B. Capitalization Rate
C. Market Analysis
D. Vacancy Rate Calculations
E. Comparable Analysis
F. Market Surveys
G. Review Questions & Answers

 

III. Some Tax Considerations in Commercial RE Investments

A. Depreciation
B. After Tax Calculations
C. Sheltering Passive Income
D. Review Questions & Answers

IV. Case Study: Multi Family

A. Optimizing Performance of a typical “miss-managed” property
B. Net Increase in Cash Flow
C. Net Increase in Equity

V. Overview of Syndications (The Business Side)

A. The Broad Definition of Syndications
B. Form of Group Investments
C. Advantages and Disadvantages to Investors
D. Sources of Compensations to the Sponsor (Syndicator)
E. Forecasting the return to Investors
F. Simple Example of a small syndication

COMING SOON

Comprehensive Commercial RE From Foundations to The Syndications

 

2 Day Boot Camp

 

LOCATION: Check for Location

DATE: TBD

TIME: TBD

 

I. Review of Fundamentals of  CRE 

A. Terminology
B. Valuations (Cap Rate – GRM)
C. Cash Flow (Before and After Tax)
D. Return on Investment Calculations
E. A Quick Visit to Internal Rate of Return (IRR)
F. Review Questions & Answers

 

II. Preparing an Offering Memorandum for Commercial RE Property

A. Industry’s Most Common Forms of Memorandum
B. Free Commercial Websites you can get data from
C. Compiling & Finalize Full Prospectus using Software tools
D. ProForma Analysis & Presentations
E. How to use the same Prospectus to Secure Listings
F. Review Questions & Answers

 

III. Property Management Aspects in Multi-Family

A. Management Roles
B. Marketing and Leasing
C. Collection Issues and Guidelines
D. Maintenance, Reporting & Performance
E. Property Management Software

 

IV. Introduction to Financial Models & Tools for Investment Evaluation

A. The Class Standard Model for Evaluating Investments (Free for Attendees)
B. Scenarios for Evaluations:

      1. Set ROI to Calculate Purchase Price

      2. Set Purchase (Asking) Price and NOI to Calculate Actual Cap Rates

      3. Adjusting Operating Expenses and DCR for Loan Qualifications

      4. “Fine-Tuning” the alternative scenarios

C. Review Questions & Answers

 

V. Case Study: Multi Family / Mixed Use

A. Evaluating the Potential Upside
B. Identifying Deferred Maintenance and Repairs
C. Strategizing the “Turn-around” Plan
D. Calculating Final increases in Equity and Cash Flow

 

VI. National Commercial RE Institutions: Websites & Information Sources

A. Building Owners and Managers Association (BOMA)
B. International Council of Shopping Centers (ICSC)
C. National Association of Industrial and Office Properties (NAIOP)
D. National Multi Housing Council (NMHC)
E. Other Related Resources

 

VII.   Investment Funds and Syndications

      The Business Side 

A. The Broad Definition of Syndications
B. Form of Group Investments
C. Advantages and Disadvantages to Investors
D. Sources of Compensations to the Sponsor (Syndicator)

VIII. Syndications Case Study (3-Year Sample)

A. Setting up the Presentation
B. Allocation of Profits
C. Estimating total Return to Investors
D. Estimating Return to Sponsors

 

IX. Tax-Deferrals and Rules of Exchanges

A. Calculating Gain
B. The Pros and Cons of 1031 Exchanges
C. The Exchange Equation
D. Reverse Exchanges

 

(Outside Speaker)

COMING SOON

Advanced Topics
in Commercial RE
Practice

 

3 Day Boot Camp

 

LOCATION: Check for Location

DATE: TBD

TIME: TBD

 

I. Overview of Commercial R.E. Investments​

A. Types of Commercial RE
B. Income/Expense sources in CRE properties
C. CRE Products (Office, Multifamily, Retail & Industrial)
D. Some important definitions & acceptable Ratios
E. Benefits of Investing in CRE properties
F. Review Questions & Answers

 

II. Valuation Methods of  C. R.E. Investments

A. The Gross Rent Multiplier Approach
B. The Capitalization Rate Approach
C. Simple calculations in CRE Investments
D. Review Questions & Answers.

 

III. Return on Investment Formulas & Calculations

A. Cash Flow vs. Leverage.
B. The 3-Stages of the Investment Cycle
C. A Comprehensive Commercial R.E. Model
D. Cash Flow, COC & Equity build-up
E. Internal Rate of Return
F. Review Questions & Answers

 

IV. Marketing Prospectuses & Offering Memorandum (O/M)

A. Presentation vs. Evaluation
B. The Market Analysis
C. Analyzing Market Trends
D. Pro-Forma & Developing Projections
E. Step-by-Step in building O/M
F. Review questions & answers​

 

V. Property Management Aspects & Software Tools

A. General concepts of Property Management.
B. Management Roles
C. Marketing, Leasing, Collection & Reporting
D. Deferred Maintenance Issues
E. Performance Issues vs. Management Plan
F. Review questions & answers

 

VI. A Comprehensive Example of Multifamily / Mixed Use project

 

VII. After-Tax Cash Flow Calculations

A. Depreciation Rules & Sheltering Guidelines
B. Impact of Tax Reform Act of 1986
C. Taxable Income & Computing After Tax Cash Flow
D. Review Questions & Answers

 

​VIII. Investment Opportunities in CRE​​

A. Distressed Properties
B. Re-positioning of an Asset
C. “Turn-around” Considerations
D. Deferred Maintenance
E. Capital Projects & Reserves
F. Building an Operating History
G. Review Questions & Answers

 

​IX. Forms of Investment Groups & Syndications​ ​

(This Segment will address the Business-Side only for Syndications. Legal & Regulatory side may be addressed by a Syndications lawyer)

A. Definitions; Group Investments and Sponsors
B. Most Common Formats of Syndications
C. Duties and Compensations of Group Sponsor
D. Formats and functions of an Investment Fund<
E. Review Questions & Answers

 

​X. Case Study Two​ ​

A. Financial Projections for a potential 7-Year Syndication
B. Discussion of various approaches in compensating a Syndicator
C. Details the “Exceeding Expectation” by Sponsor / Syndicator
D. How to identify potential suitable investments for Syndications

 

​XI. Financial Models

​A. Modeling Software & Investment Presentations
B. Various uses of Financial Models in Selecting Investment Properties
C. Building “Side-by-Side” Actual and ProForma Tables
D. Review Questions & Answers

 

​XII. Tax-Deferrals and Rules of Exchanges

A. Calculating Gain
B. The Pros and Cons of 1031 Exchanges
C. The Exchange Equation
D. Reverse Exchanges
E. Review Questions & Answers

 

(Outside Speaker)

COMING SOON

Why Commercial RE Academy?

We believe that many Residential Agents can acquire the needed knowledge to practice Commercial real estate.

Among the needed skills, knowledge of the needed.