REIA

With over 7.5 hours of video lessons, this real estate investing course is structured to offer an immersive learning experience. It teaches industry-leading best practices with real practical applications, ensuring that you can apply what you learn in real-world scenarios. For example, we have included several case studies with xls files and market reports. 

The content is organized into six individual chapters:

Chapter 1: Overview of Real Estate 

• Introduction to real estate property types, compensation levels of real estate investment professionals and reasons for pursuing a career in real estate.
• Four quadrants of property investing and how investors can gain exposure to real estate via equity and debt instruments in private and public markets.
• Key value drivers of different property types and real estate classifications.
• Transaction volumes over time by asset classes and the factors driving transaction volumes.
• Unique return characteristics of real estate.

Chapter 2: Leases

• Most common clauses including indexation clauses, fixed stepped rents, and open market rent reviews.
• The importance for guarantors when negotiating leases.
• Different types of leases including gross-, single- double- and triple net leases and their implications for the sharing of operational expenses between tenants and landlords.
• Credit risks assessments including quantitative and qualitative factors to assess the credit strength of tenants in private markets as well as industry specific ratios such as effort ratios.
• Difference between market rents and in-place leases and how to forecast rents in financial models.
• The main drivers of rental growth including demand and supply factors.
• Case study of a UK based logistics assets to illustrate the relationship between market rents and in-place rents in financial models.
• Effective rents and the importance of tenant incentives including tenant improvements and rent frees to assess the economic value of different leases.

Chapter 3: Real Estate Market Environment

• Occupational market including the most important asset specific and structural demand drivers.
• Key variables to assess a supply and demand imbalance and the implications for rental growth projections.
• Investment market and importance for property valuations.
• Real estate market cycles including the most important phases of real estate markets.
• Conventional theory of property cycles and real-life examples of property cycles (Spanish residential and the global office market)

Chapter 4: Risks & Investment Strategies

• Different investment strategies including core, core plus, value-add and opportunistic strategies.
• Investor universe including different types of buyers including private equity firms, REITs, asset managers, sovereign wealth funds and private investment firms.
• Competitive landscape of different private equity firms. 
• Different types of risks, mitigants and investment strategies. 
• Evidence of real estate fund performances and reasons why some fund managers consistently outperform markets.

Chapter 5: Cap Stack & Distressed Debt Investing 

• Different types of securities across the capital structure including common equity, pref equity, mezzanine and senior debt.
• Scenario analysis and xls waterfall repayment schedules to analyse how the value of financial instruments change with the value of underlying property. 
• Most important hedges including caps and swaps and financial covenants such as ICR, DSCR, LTV and debt yield covenants. 
• Introduction to distressed debt investing including different credit investment strategies (DPOs and loan-to own strategies)

Chapter 6: External Debt Financing 

• Different types of debt facilities used by most private equity investors including acquisition-, capex-, refi- and bridge loans as well as mezz instruments. 
• Basic debt terms with simple xls based debt repayment schedule and more advanced terms such as make-whole provisions, PIK vs cash and floating vs fixed interest, commitment fees, prepayment penalties  etc.
• Complex and dynamic xls based financial model to project lender returns 
• Analysis of the relationship of the cost of debt, unlevered returns and levered returns as well as the sensitivities of returns to LTV levels.
• The debt process with most important legal documents.  
• Draft heads of terms for external debt facility with most important legal terms used when negotiating debt terms. 
• Advanced topics including recourse vs non-recourse loans, allocated loan amounts and release pricing mechanisms as well as sequential vs pari-passu drawdown mechanisms.

Who is this course for?

• Students aspiring to work in real estate.
• Investment professionals seeking to deepen their knowledge of real estate investing theories and concepts.
• Anyone who is exploring the idea of pursuing a career in real estate.

Recommended Prerequisites

It is recommended learners take the REIA Applied Financial Modelling course beforehand. This will help participants better follow the advanced xls files used in some lessons.

Completing this course lays the groundwork for the third course in the REIA Package (Advanced Real Estate Valuation) as well as the REIA financial modelling courses.

Refund Policy

You will be entitled to a full refund within the first 72 hours of signing up this course. Just send an e-email to admin@reia-edu.com.