Fundamentals of Analyzing Real Estate Investments

The Kingdom of Saudi Arabia views real estate as one of the most preferred investments, which is characterized by a high degree of stability compared to other investments, also real estate investments are known for their attractive profits and long-term capital appreciation.

In this training program, participants will become familiar with real estate investments, professional methods for assessing investment opportunities, as well as the techniques that make a profitable and successful investment possible.

(Online Program)

Program Objectives

By the end of this Program, the participant will be able to:

• Analyze real estate investments to find the best investment opportunities and increase profits.
• Evaluate the opportunities of residential and commercial real estate to determine the feasibility of buying or acquiring a particular property and to determine the expected return in the future.
• Structuring investments with business partners in a smart and fair way through the regression framework.
• Determining investment risks to achieve higher success rates, more profits, and avoid financial default.

Module 1: Introduction to Investment Analysis

• Why to do investment analysis?
• Understanding investment analysis process

Module 2: Investment Process

• Origination
• Analysis
• Due Diligence
• Finance and closing
• Construction & Rehab
• Stabilization
• Exit

Module 3: Real Estate Cycles

• Recovery phases
• Expansion phase
• Hyper supply phase
• Recession phase

Module 4: Foundations of How to Measure Returns 

• Yields and Cap Rates
• Pay Back Period
• Equity Build Up
• Price Appreciation and Value Multiple
• Return on Investment (ROI)  
• Return on Equity (ROE) 
• Internal Rate of return (IRR)
• Leverage
• Discount rate
• Discounted cash flow and net present value (NPV)
• Cash multiple
• Which measure to use Terminal value

Module 5: Impact of Debt on Return

•  Interest only Vs Amortized Debt
• The Amortization Calculator
• Amortization Schedule w/ Extra
• Principal Payment Option
• Unleveraged vs Leveraged Returns

Module 6: Investments Considerations

• Market and external considerations that could affect your investment analysis
• Property Considerations that could affect your investment analysis
• Deal considerations that could affect your investment analysis
• Other considerations that could affect your investment analysis

Module 7: Three Primary Investment Strategies

• Core Investment Strategy
• Opportunistic Investment Strategy
• Value Added Investment Strategy

Module 8: Invest with Others: Introduction to Waterfall framework

• Why would you want to invest with others? What are the potential benefits?
• What are the Risks of Investing with Others?
• Intro to the Waterfall Distribution Framework
• Waterfall examples 
  • No waterfall
  • Two tier Waterfall 
  • Three tier Waterfall
  • Four tier Waterfall
• Which Waterfall to Use?
• What Happens if Investment Loses Money?
  • Money Losing Investment Waterfall
  • Waterfall using Fix & Flip Investment
  • Waterfall using Rental Income Investment

Module 9: Fix and Flip

• Key Considerations 
• Case study

Module 10: Rental Income Property

• Key Considerations
• Case study

Module 11: Multi-Unit Property

• Key Considerations
• Case study

Module 12: Commercial Real Estate

• Introduction to Commercial Real Estate
• Different asset states encountered in commercial real estate investments
• Types of Commercial Leases (overview and examples):
  • IndustrialWarehouse
  • Industrial Portfolio (Multiple Tenants)
  • Retail
  • Anchored Retail
  • Simple Office
  • Downtown Office
  • Mixed Use Retail Center
  • Medical Plaza Build to Suit
  • FinishedLandLots-Land Banking
  • Operating Assets
  • Self-Storage
  • Economy Hotel
  • Parking Garage

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