Commercial Real Estate Financing
April 6-7, 2006
T
hrough an excellent mix of academic principles and real-world examples, you will learn the tools used by real estate developers, investors, lenders, brokers and appraisal professionals to underwrite and critically evaluate an income-producing property’s potential for financing. Begin by discussing the fundamentals of commercial property markets, such as the enterprise approach to real estate development and the unique qualities and cycles of the commercial real estate market. You will review present value concepts and mortgage mathematics and then use contemporary financial analysis techniques to analyze the risks and return of income property. Learn to apply these techniques to refinancing decisions, salelease back, wraparound mortgages, participation mortgages and other debt structures, including mezzanine financing. Case studies provide the opportunity to focus on significant issues and apply the techniques presented during the course.
Your Instructor
Jay Sa-Aadu, Ph.D. is Chester A. Phillips Professor
of Business Finance and Real Estate, and Chairman of the Finance Department at the University of Iowa Henry B. Tippie College of Business, Iowa City, Iowa. Jay teaches real estate finance, real estate investment analysis, mortgage backed securities and fixed income securities. Jay has conducted extensive research and consulted in the areas of mortgage finance, real estate investment trusts (REITs), housing economics, and corporate finance. Recent domestic clients include Federal National Mortgage Association and Alliant Energy, and international clients include the Ghana Stock Exchange, Home Finance Company Limited, Ghana, Ghana Banking College and Shelter Afrique, Kenya. His most recent assignment involved the determination of cost of capital for Alliant Energy joint venture projects in Brazil and China.
Program Objectives
This course will provide participants with the tools needed to: • Underwrite income producing property. • Evaluate income producing property potential for financing. • Critically analyze the risks and return of income property financing using modern discounted cash flow techniques. • Apply techniques to refinancing decisions, sale-lease back, wraparound mortgages, participation mortgages and other debt structures, including mezzanine financing. • Analyze loan workouts. • Analyze case studies to apply the techniques presented during the course to real-world examples.
Who Should Attend
Anyone involved in commercial real estate development, finance, investment, mortgage banking, commercial brokerage, appraisal and consulting who requires a firm understanding of real estate feasibility and investment analysis. Managers who have recently assumed a position that requires analytical real estate skills. Individual investors and investment advisors in commercial real estate. Please note that attendees are expected to be able to use a financial calculator. Bring calculators to this course.
“Jay was extremely knowledgeable on the topics. His knowledge, enthusiasm, and approachability are all excellent.” “The course was worth every cent. Really enjoyed Jay’s presentation and insights. Ideas and examples used were practical and applicable to the real world.”