Intro to Real Estate Investing
September 3 - October 8, 2024
6 - 8:00 p.m. MST
Whether you are looking to transition to a career in real estate or听are looking to invest in real estate personally, this six-week course can help give you the financial acumen听to make comfortable investment decisions. In this course you will learn to: (1) describe, analyze, and compare the features of residential mortgage loans, commercial mortgage loans, and commercial leases; (2) conduct income property investment analyses and develop the technical competence necessary to structure basic real estate transactions; (3) understand the operations and valuations of private equity funds and real estate investment trusts (REITs), and how real estate is securitized and sold to everyday investors. The goal of the class is not just to help you succeed in the residential and commercial real estate investment industry, but also to provide tools and knowledge that will help you in any future personal real estate and mortgage market decisions.
Module Schedule:
Introduction to the course + mortgages
September 3, 2024
In this first module, we learn how to compute payment schedules for fixed-rate and adjustable-rate mortgages. We also discuss pros and cons of different mortgage types for both borrowers and lenders. Finally, we see how the total cost to the borrower or the yield to the lender is affected by prepayment and by different types of fees/penalties.听 听
Valuing residential and commercial real estate
September 10, 2024
We learn about the different methods to value a house or commercial property, and about the pros and cons of each. Also, how can we value a plot of land?听
Investment analysis: proformas and the investment decision
September 17, 2024
Before deciding whether to invest in a property, we want to project future income and expenses. In this module, we learn how to put together a proforma, which is a statement of expected future cashflows. Based on this proforma, we can compute different measures of the expected investment performance.
The role of leverage + risk analysis
September 24, 2024
How does the use of leverage affect our expected returns鈥攁nd the riskiness of our investment? How sensitive is our expected investment performance to different assumptions about future income or expenses?听
Secondary mortgage markets + REITs
October 1, 2024
We learn how mortgage-backed securities work. Also, how do we know if exchange-traded estate investment trusts (REITs) are overvalued or undervalued?听
Institutional real estate investment + wrapping up听
October 8, 2024
How are the profits in real estate private equity funds split between fund managers (GPs) and outside investors (LPs)? What is the business model of iBuyers? We conclude the course with a panel of industry professionals sharing their views on where the real estate market is heading.听
Key Takeaways from the course:
- Able to describe, analyze, and compare the features of residential mortgage loans, commercial mortgage loans, and commercial leases
- Conduct income property investment analyses and develop the technical competence necessary to structure basic real estate transactions
- Develop an understanding of the operations and valuations of private equity funds and real estate investment trusts (REITs), and how real estate is securitized and sold to everyday investors
Instructor biography:
Christophe Spaenjers is an Associate Professor of Finance at the University of Colorado Boulder's Leeds School of Business. He is an academic expert on the markets for real estate, art, and other 鈥渞eal鈥� assets. He graduated with a Ph.D. in Finance from Tilburg University (the Netherlands) in 2011, after which he joined the Finance department of HEC Paris (France). In 2022 he joined 抖阴旅行射 Boulder, where he is the Faculty Director of the MS in Real Estate and the Faculty Director of the Michael A. Klump Center for Real Estate. He has extensive experience teaching finance and real estate to both undergraduate and graduate students. His research has been published in leading academic journals such as the American Economic Review, Journal of Finance, Review of Financial Studies, Journal of Financial Economics, and Management Science. His research has been covered extensively in the popular press (e.g., The Economist, Financial Times, New York Times, Wall Street Journal) as well.