Program Overview

Program Overview

The Real Estate Finance 101 program focuses on the basics of real estate finance, presenting critical principles and practices in a simple, understandable, and interactive manner. This program is designed to demystify the real estate financing process, regardless of participants' prior real estate finance experience.

Program Details

• The program will cover real estate finance fundamentals important for developing and/or investing in various types of real estate assets.
• It will enhance participants' ability to understand how real estate finance fundamentals relate to their primary role as a member of a real estate development or investment team.
• Emphasis will be placed on understanding how real estate value is created, measured, and managed.

What to Expect

• Lively classroom discussion
• Certificate of Completion
• Post-session instructor Q&A

Key Topics

• Establishing realistic financial objectives
• Identifying and calculating the primary components of return in income-producing real estate, including cash flow, tax benefits, and futures
• Preparing operating and capital cost pro formas and sources and uses of funds statements
• Understanding debt-financing underwriting basics (net operating income, debt service coverage factors, annual constants, debt/equity ratios, and other lender underwriting requirements)
• Appreciating the importance of achieving positive financial leverage
• Calculating and interpreting standard industry measures of return:
  • Return on Total Asset Cost (Cap Rate)
  • Cash-on-Cash Return
  • Leveraged and unleveraged Net Present Value (NPV), and Internal Rate of Return (IRR)
  • Equity Multiples

Additional Topics

• Preparing sensitivity analyses
• Understanding simple Waterfall/Promote structures (the priority and amount of cash flow distributions to the respective financial and operating partners in a real estate joint development or investment joint venture)

Learning Objectives

• Identify the methodologies used to calculate the primary components of return in income-producing real estate.
• Establish reasonable financial return targets for each of these primary return components.
• Determine the level of debt financing that a project is likely to achieve based upon applicable underwriting criteria.
• Prepare simple operating pro forma, capital cost pro forma, and sources and uses of funds statements.
• Understand the most common real estate industry measures of return and the relative importance of each measure.
• Understand the significance of Purchase, Operating, and Exit Cap Rates.
• Understand a simple Waterfall/Promote structure.

Target Audience

• This program is intended for developers, architects, engineers, contractors, lenders, property managers, lawyers, brokers, investors, and other participants in the real estate development, investment, entitlement, or regulatory process, including private, public, and NGO-sector players.
• It is not designed for real estate professionals seeking an advanced real estate finance course. For experienced executives, please consider the Advanced Management Development Program.

Instructor

David Smith

• Founder and CEO, Affordable Housing Institute (AHI)

Program Schedule

• November 14, 17, 19, & 21, 2025 | 11:00 am – 01:00 pm Eastern
• Online
• Tuition: $1,950
• CEUs: 7 AIA LUs, 7 AICP/CM, 7 LA/CES
• AMDP Elective Units: 1

Discounts and Deadlines

• Save 10% when you register for this program and Real Estate Development 101 (October 22, 24, 27, & 29, 2025) at the same time.
• Registration Deadline: 3 hours before the start of the program.