YoVDO

Pre-investing: Before Investing in Real Estate

Offered By: LinkedIn Learning

Tags

Real Estate Investing Courses Market Analysis Courses Cash Flow Analysis Courses Internal Rate of Return Courses Financial Modeling Courses Net Present Value Courses Property Valuation Courses

Course Description

Overview

Learn what you need to know before you make your first real estate investment. Get tips designed for first-time investors who need an overview of real estate investing basics.

Syllabus

Introduction
  • Start here
1. Case Study: Joe's First Investment
  • Why invest in real estate?
  • Meet Joe
  • Which market will Joe choose to invest in?
  • Which property will Joe choose to buy?
  • How much financing will Joe use?
  • Quick peek at Joe's investment financial model
2. The Many Ways to Invest in Real Estate
  • There is more than one way to invest in real estate
  • Introduction to real estate asset types
  • Introduction to investment strategies
  • Strategies for first time investors
3. Real Estate Market Cycles
  • Overview of real estate market cycles
  • The recovery phase
  • The expansion phase
  • The hypersupply phase
  • The recession phase
  • The next bust?
4. How to Value a Property
  • To buy profitably, you must value accurately
  • The cost approach to valuation
  • The comparable sales approach to valuation
  • The income approach to valuation
5. Understanding Your Market
  • Where to get the data
  • Regional analysis
  • Neighborhood analysis
  • Competitive analysis
6. What Makes a Good Investment?
  • What makes a good investment?
  • Discounted cash flow and the net present value (NPV)
  • Discount rate
  • NPV demonstration
  • Measuring efficiency: Internal rate of return (IRR)
  • IRR demonstration
  • Measuring magnitude: Cash multiple
  • How to use the measures
  • NPV vs. IRR
  • The terminal value of an indefinitely held rental
  • Investment yields and capitalization rates
  • Measures of return summary
7. Understanding Leverage
  • Components of debt
  • Interest-only vs. amortized loans
  • The amortization calculator
  • How leverage impacts investment returns
  • Debt leverage summary
8. Case Study: Rental Income Property Analysis
  • Case study #2 overview
  • Market research, part 1
  • Market research, part 2
  • Detailed look at the back of the envelope (BOE) analysis
Conclusion
  • Congratulations

Taught by

Symon He

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