COURSE DESCRIPTION

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The course is developed in theory and real cases of real estate investments. Access will be given to advanced financial models for hotel development, housing development, industrial warehouses in operation, among others.

The course is focused so that the student acquires the lens of an investor and makes informed investment decisions. The course is made up of the following modules:

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MODULE 1 - INTRODUCTION TO REAL ESTATE INVESTMENTS

1.1 Real Estate as an asset class

1.2 Return Components of a Real Estate Investment

1.3 Risk-Return Relationship (Stabilized properties, remodeling, development)

1.4 Real Estate Valuation Approaches and Methodologies

1.5 Cash Flow Profile (Stabilized properties, remodeling, development)

1.6 Real Estate Indices

1.7 Market Capitalization Rates

1.8 Variables of a real estate financial model

1.9 Land Uses in Mexico

1.10 Land Occupation Coefficients (COS)

1.11 Land Use Coefficients (CUS)

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MODULE 2 - OPERATIONAL REAL ESTATE METRICS

2.1 Potential Gross Income (PGI)

2.2 Physical and Monetary Occupation

2.3 Effective Gross Income (EGI)

2.4 Net Operating Income (NOI)

2.5 Gross Operating Profit (GOB)

2.6 Earnings Before Interests Taxes Depreciation & Amortization (EBITDA)

2.7 Weighted Average Lease Term (WALT)

2.8 Gross Rent Multiplier (GRM)

2.9 Revenue Per Available Room (RevPAR)

2.10 Average Daily Rate (ADR)

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MODULE 3 - REAL ESTATE PERFORMANCE METRICS

3.1 Net Present Value (NPV)

3.2 Net Present Value Profile

3.3 Internal Rate of Return (IRR)

3.4 Multiple Internal Rates of Return

3.5 Equity Multiple

3.6 Going-In Capitalization Rate

3.7 Recovery Period

3.8 Exit Capitalization Rate

3.9 Cash-on-Cash (CoC) Return

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MODULE 4 – REAL ESTATE LEVERAGE METRICS

4.1 Leverage

4.2 Financial Products in the Real Estate Sector

4.3 Real Estate Financing (Bridge Loan)

4.4 Real Estate Financing (Long-Term Loan)

4.5 Debt Service Coverage Ratio (DSCR)

4.6 Loan-to-Cost (LTC)

4.7 Cost of Debt

4.8 Loan-to-Value (LTV)

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MODULE 5 – CASE STUDY: INVESTMENT IN STABILIZED INDUSTRIAL WAREHOUSE
5.1 Presentation of the Investment Opportunity
5.2 Assumptions

5.3 Unlevered Cash Flows

5.4 Levered Cash Flow

5.5 Financial Metrics

5.6 Expected return sensitivity to prices

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MODULE 6 - CASE STUDY: VERTICAL HOUSING DEVELOPMENT
7.1 Presentation of the Investment Opportunity
7.2 Land Use

7.3 Table of Areas

7.4 Market Analysis

7.5 Cost Engineering

7.6 Progress of Work

7.7 Financing

7.8 Cash Flow

7.9 Financial Metrics

7.10 Sensitivity of the purchase price of the land to the expected return

7.11 Investment Decision

 

Microsoft Excel

This course requires Microsoft Excel to complete various tasks.