Real estate investment is a popular way to accumulate wealth, but you don't have to be rich to get started. That's because there are many ways to finance real estate investments to raise the equity you need and structure debt beneficially. In this course, you will explore both sides of the financing equation to understand what equity and debt partners want, how to structure financing for a high likelihood of approval and rate of return, and how to perform analyses that are critical to success. Not only will these analyses upgrade your skills, the sophisticated spreadsheet tools you use can be applied immediately to real-life opportunities.
The course Real Estate Investment Decisions is required to be completed prior to starting this course.
KEY COURSE TAKEAWAYS
Calculate the cash flow distribution "waterfall" that is part of the promote structure of profit sharing in a private equity deal
Model duration to clarify the timing of cash returns and determine the modified internal rates of return (IRR) on real estate investments
Determine the size of the mortgage that meets the needs of lenders and investors
Calculate the true costs of mortgage loans, taking into account a wide range of possible fees and features
Professor, The Hotel School, Cornell SC Johnson College of Business
Jan A. deRoos is the HVS Professor of Hotel Finance and Real Estate at the Cornell SC Johnson College of Business. He has devoted his career to teaching and research related to hospitality real estate, with a focus on the valuation, financing, development, and control of lodging, timeshare, and restaurant assets.
DeRoos has developed two online executive education programs for real estate professionals; one with a broad real estate industry perspective and a second that focuses on lodging. He co-developed a free web-based tool, the Hotel Valuation Software, with Stephen Rushmore of HVS International. His book on hotel management agreements, co-authored with the late James Eyster, is the seminal academic publication on the topic.
Prior to joining Cornell, deRoos worked extensively in the hotel industry as a construction and engineering manager.