Daniel Lebret is a senior lecturer in real estate finance at the Cornell Nolan School of Hotel Administration. He has been at Cornell University since he received his Ph.D. in 2008, and his teaching responsibilities have included undergraduate and graduate courses on real estate finance, real estate financial modeling, real estate statistical modeling, urban economics, securitization, and structured finance, along with coaching teams of students for real estate finance case competitions.
With population growth and a finite amount of space on this planet comes a natural expansion of the land we use for human activity, and real estate development is the immediate consequence of this ever-growing human footprint. Most of the time, real estate development is a business in and of itself, with each development decision requiring meticulous economic analysis.
In this course, you will start by assessing the real estate process as a whole, which will inform your understanding of why properties are located where they are. You will then examine the financing process that facilitates real estate development. To apply your knowledge, you will build a model from the ground up that includes the sequence of various equity and construction loan draws, including how to reallocate the proceeds. The course concludes with an evaluation of the optimal use of a vacant lot in New York City. You will apply what you have studied throughout this course to make a recommendation with respect to the appropriate land value and its best use given the financing structure in place, providing you with experience and best practices to apply to your role.
You are required to have completed the following courses or have equivalent experience before taking this course:
- Discounted Cash Flows in Real Estate
- Unlevered Real Estate Acquisitions
- Real Estate Debt Financing and Scenario Analysis
Key Course Takeaways
- Describe the development process from a financing perspective
- Model the capital accounts in a new development situation
- Derive the equity cash flows in a real estate development opportunity through an examination of the sources and uses of funds
- Conduct a sensitivity analysis inclusive of the different scenarios as they relate to property types and common variables
How It Works
Who Should Enroll
- Acquisition and asset managers
- Financial analysts
- Real estate investors
- Real estate development professionals
- Individuals looking to invest in commercial real estate
- MBA students
- City and regional planning professionals