Breaking down the programs: Real Estate FinanceNews
The Homburg Institute’s DNA carries with it two separate, but equally important philosophies: creating a learning atmosphere that encourages practical, applicable real estate education, and to catering to the broadest spectrum of learners possible. Established professionals to up-and-coming real estate students, suites of courses to one-off advancement training. The more variety we can offer in format and topic, the more likely we are to serve the needs of a real estate community that’s really quite diverse.
On that note, we’re bringing breaking down the programs into the spotlight. A short series designed to do a deep dive into the content of the Homburg Institute’s programs, we’ll be looking at individual objectives and the overall impact of these courses when delivered in unison. This week’s subject is the Real Estate Finance program, home to four core courses: Corporate Finance for Real Estate, Risk and Portfolio Management, Commercial Real Estate Appraisal Process and Advanced Real Estate Finance.
Corporate Finance for Real Estate
It’s stated directly on our course landing page: financial managers make important decisions every day that affect the finances of companies both large and small. Each and every business must have qualified financial experts on the team to ensure that a business is just that - but the nature of real estate ventures make the role critical not just in the abstract sense, but in the small, pivotal decisions that occur regularly in real estate.
Interpreting and relating data from financial instruments and market sources to inform one’s decision making could be considered the point-of-entry for a much more complicated and ultimately rewarding process. To get there, this course touches on standards conventions, principles and techniques used in an array of industries to prepare the learned for complex applications tied directly to the real estate industry.
Risk and Portfolio Management
A two-pronged course, Risk and Portfolio Management is applicable to both investment portfolio managers in real estate, and to those hiring one. Geared to create an intimate understanding how the role works applied to the industry, and the quantification of risk.
Here, Dr. Tom Guerts will outline the standard principles of investment strategy and compare the concepts and real-world processes of both sourcing and underwriting. Diversified portfolios, identifying correlations in real estate, due diligence methods (and concepts) and internal risk rating systems - it’s all here.
A more formidable knowledge of the interaction between the property and investment markets is just one of the many new skill sets Risk and Portfolio Management boasts. In combination with articulating portfolio management techniques such as risk & return and diversification, securitization, hedging, and derivatives, the value proposition makes this course an integral part of the Real Estate Finance program and an attractive standalone option as well.
Commercial Real Estate Appraisal Process
Though we’ve touched on the importance of informed valuations in the past, appraisals are equally as important, albeit quite different. Where valuations represent a deep dive into a structure or property’s features, faults, and qualities, appraisals call on recent experience and selling history in a property’s proximity. These initial approximations often represent the entry point of a pricing or valuation dialogue.
Commercial Real Estate Appraisal Process with Mark Polon explores some of the most critical facets of the appraisal process, including site analysts and financial operations for appraisal and valuation alike. This information is tailored to springboard learners into the factors that influence value, funding strategies, and more. As is listed on our course page, these skills will empower real estate professionals with enhanced decision making processes through systematic and logical multi-factorial analysis application.
Advanced Real Estate Finance
A step in the same direction as Corporate Finance for Real Estate but further down the road, Advanced Real Estate Finance with Roger Staiger enhances one’s knowledge of the core practices in finance and investment for commercial real estate.
A deep dive into both the design and pricing of varying mortgage instruments is complemented by time spent on how to compare mortgage products, the defining factors of commercial vs. residential mortgages, and the secondary mortgage market. To get there, Staiger touches on debt financing, the effects of leverage, valuation, and varying forms of capital. In concert with the other courses bundled in this program, Advanced Real Estate Finance represents the ideal conclusion to a four-part package designed to deliver practical financial expertise that’s applicable to firms within the industry.
Advanced Corporate Finance
Applying the knowledge and techniques learned Corporate Finance for Real Estate, this course is targeted directly at the relationship between real estate firm and finance. Because varying types of projects and objectives yield highly unique firm types, students will want to familiarize themselves with specific concepts, methodologies, and techniques that are applicable to each.
Including but not limited to strategic financial, dividend, and long term investment decisions respectively, Advanced Real Estate Finance establishes a deep understanding of not only how these decisions are made intelligently, but how investment and financing decisions interact as well. Once done, the course progresses into direct application and issues specific to the real estate firm landscape, including REITs, sale lease-back transactions, and advanced RE investment analysis - all in detail.
Harnessing the fundamental information housed in Joy Chan’s Corporate Finance for Real Estate and the complex topics broached in Advanced Real Estate Finance, learners will be well equipped to perform not only in general finance, but specifically within firms in real estate.