Introducing CRE Investment Analysis Fundamentals
A complete online course that walks you through the entire commercial real estate investment analysis process step-by-step with easy-to-follow videos and done-for-you templates
By far the most common questions we get at PropertyMetrics all have to do with the fundamentals. People get stuck on the math for a particular calculation, don’t know how to interpret various investment measures, or sometimes have a hard time seeing the big picture without losing sight of all the details.
Commercial real estate finance isn’t an easy topic to tackle. It can be especially overwhelming when you’re trying to break into the industry for the first time, and also when you’re just brushing up on your skills to fill in the gaps.
We hear comments like these all the time:
I learned these concepts in college, but I never really understood the intuition or how to apply them.
I am an investor in commercial real estate, but I have some gaps in my education that I need to fill.
I studied finance in college and learned most of these things, however, because I do not use these skills in my day-to-day work at the moment, I am trying to get back up to speed.
I need a refresher on understanding what metrics really matter and how to interpret them.
I want to make a career change into commercial real estate, but I feel like my lack of experience and unrelated degree will hold me back.
I want to land a summer analyst role but I’m afraid I’m vastly under-prepared.
I just started a new analyst job and I’m struggling to keep up with everything my boss tells me to do. I don’t want to ask him a bunch of questions and risk looking dumb.
My commercial real estate career has focused solely on leasing, however, I will be working on a team that has an investment sales component as well and I want to be prepared.
All this math is giving me a headache.
Do any of these comments resonate with you?
What would mastering the fundamentals do for you?
- Feel more at ease when working with clients, partners, and co-workers.
- Gain confidence when making investment decisions and recommendations.
- Avoid “feeling dumb” in front of your boss, clients, or other co-workers.
- Understand the right questions to ask and what metrics really matter.
- Ace your exams and land your dream job.
- Break into the CRE industry with a smooth transition
What is CRE Investment Analysis Fundamentals?
Investment Analysis Fundamentals is an online interactive video-based course that teaches the foundations of real estate investment analysis to beginners who want a head start and industry professionals who want to plug the gaps in their education.
Whether you’re brand new to commercial real estate or a seasoned pro that wants to brush up on your skills, this course will give you a solid foundation and a deep intuition to operate at your highest level.
The training is released in 6 separate modules and consists of easy-to-follow videos, done-for-you templates, worksheets, and step-by-step case studies. All of the training is online, contained in the private member only site.
During the course we’ll walk through an office building acquisition step-by-step, detailing the cash flow projections, various investment ratios, and a full discounted cash flow analysis. By the end of this course you’ll be equipped to analyze and compare potential investment properties on a before-tax basis to ultimately make well informed decisions.
Plus, you’re a student for life. You can retake the program for free for as long as the program exists.
What Others Are Saying
The CRE Investment Analysis Fundamentals course by PropertyMetrics is exceptionally well-presented. It’s a quick, easy-to-absorb, yet in-depth introduction of the basics of commercial real estate investment analysis. It should be required of anyone entering the field of commercial real estate finance.
Ben Sharma | Harvard Business School MBA and CEO of Orevco
The Investment Analysis Fundamentals course offered by PropertyMetrics is a great course providing either a refresher to someone already in the industry or a solid foundation to someone with little experience. Measures, calculations, and concepts of investment analysis are broken down in an approachable way and each module is connected to the case study and excel model provided. The course helped me to better understand terminology and concepts that are used in my office on a day to day basis, and being able to complete each module at my own pace was a huge selling point for me. Also helpful is the ability to access this course in the future. So much information was covered in just six modules that I will definitely be going back to review certain concepts in the future.
Cassidy McCormick | Portfolio Management, Real Estate Private Equity
PropertyMetrics has crafted a sound introduction to commercial real estate finance with their Investment Analysis Fundamentals online course. The course is comprised of video lecture, spreadsheets, and other aides that make understanding concepts easy to follow. I certainly believe it helped refresh some commercial real estate concepts that I had forgotten, and has also taught me easier ways to explain these concepts to colleagues.
Neel Shivcharran | Land Analyst, Mattamy Homes
Who Should Take This Course?
- Existing commercial real estate professionals who want to brush up on their skills and plug the gaps in their education.
- Career changers who want to break into the industry but don’t have a formal background in real estate finance.
- Residential Realtors who want to move into commercial real estate.
- First time investors who want to learn the basics and avoid making any critical mistakes.
- Students who want to ace their exams and job interviews.
- Recent grads and young professionals who want to get ahead and stand out from the crowd.
3 Monthly Payments of $197
Your CRE Investment Analysis Fundamentals Course Includes:
Module 1: The Commercial Real Estate Landscape
- An overview of the different types and categories of commercial real estate
- The 2 major decision makers in commercial real estate
- The commercial real estate market cycle
- The structure of the capital markets
- The 4 kinds of investment analysis
Module 2: Deconstructing The Real Estate Proforma
- The real estate cash flow model
- Components of the real estate proforma, step-by-step
- The spectrum of commercial real estate leases
- Detailed example of before tax cash flow calculation
- How to estimate sale proceeds
Module 3: Simple Measures of Investment Performance
- How to calculate and interpret the gross rent multiplier, capitalization rate, and the cash on cash return
- Detailed examples with step-by-step calculations and interpretations
- The limitations of ratio analysis
- Step-by-step calculations and interpretation for a sample investment property
Module 4: Time Value of Money Crash Course
- Why money has time value
- Intuition behind compounding
- Intuition behind discounting
- 5 components of all time value of money problems
- The 6 most common time value of money problems in commercial real estate
- Strategies for approaching ANY time value of money problem
- Example problem walk-throughs
- Excel formula cheat sheet
- Done-for-you Excel worksheet with the most common time value of money calculations
Module 5: Mastering Discounted Cash Flow Analysis
- The big picture of discounted cash flow analysis
- Intuition behind the Internal Rate of Return (IRR) and the Net Present Value (NPV)
- Step-by-step calculation of IRR
- Step-by-step calculation of NPV
- How IRR is related to NPV
- How to interpret a discounted cash flow analysis
- Step-by-step DCF analysis for a sample investment property
Module 6: How Commercial Real Estate Loans Work
- Understanding the 3 types of leverage
- The commercial real estate underwriting process
- The components of every commercial loan
- How to calculate loan payments and ballon payments, step-by-step
- How loan points work and how to calculate the cost of borrowed funds
- How to compare multiple term sheets from different lenders
- Done-for-you lender comparison Excel worksheet
- Example levered and unlevered discounted cash flow analysis, step-by-step
Case Study: Step-by-Step Investment Analysis
- Complete office building case study walk-through
- 5-year proforma with rent and expense escalations
- Ratio analysis including all calculations, formulas, and explanations
- Complete discounted cash flow analysis including calculation of IRR, NPV, and investment value
- How adding a loan to the property changes the analysis
Bonus: Fully Unlocked Excel Model
- Fully unlocked Excel model you can use outside of the course
- 5-year before tax proforma, with or without debt
- Includes cash on cash return, gross rent multiplier, breakeven occupancy ratio, operating expense ratio, and the debt service coverage ratio
- Calculates levered and unlevered internal rate of return, investment value, and net present value
3 Monthly Payments of $197
I have to compliment your company on clearly explaining valuation concepts to me. To put this into context, I asked my professor in my investment class last week if he knew of a way to value an income property using discounted cash flow analysis. Long story short…you guys are smarter than my professor. THANKS PropertyMetrics! “
Jonathan Torres | College Student
I want you to know how much I appreciate PropertyMetrics. As a 30 year real estate attorney focusing primarily on commercial leasing and purchase and sale of commercial properties, it is extremely helpful to see the principles I have learned and used for so many years explained so clearly.
Jon K. Ladd | Business and Real Estate Law Group