Investment Real Estate: Financial Tools (FIN402)

This course addresses the core issues that impact fiscal planning, giving you the ability to calculate important financial components and take control of your property’s financial outlook. Learn when to apply the appropriate financial tools in order to meet your owner’s goals and promote the success of the properties you manage.

What you’ll learn:

• Budgeting and analysis: Owner’s goals and objectives, budgets and forecasts, variances
• Cash flow analysis: Pro forma statements, cash flow trends, calculating rates of return
• Capitalization and valuation: Property valuation, income capitalization, equity capitalization
• Taxation and financing: Property taxes overview, cost recovery deductions, types of financing, equity residual model payments, principal and interest calculations, yield maintenance and defeasance
• Loan analysis: Loan-to-value (LTV), debt coverage, margin of safety, leverage applications

How you’ll benefit:

• Gain the fiduciary trust needed to work effectively with owners and investors
• Maximize the financial potential of the properties you manage
• Establish yourself as a strategic partner to your clients

HP10BII Financial Calculator Required: The HP10BII financial calculator is required for this course. Course materials illustrate keystrokes for this calculator only. Students taking this course are expected to have a working knowledge of the basic operations and functionality of the calculator. Students are encouraged to download the interactive HP10BII Financial Calculator Tutorial and the “HP10BII Financial Calculator Quick Reference Guide” and review it prior to taking this course.

IREM strongly recommends taking FIN402, ASM603, ASM604, ASM605, and the MPSAXM in consecutive order. ASM603, ASM604, and ASM605 are offered together as the Asset Analysis track.