We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on the ESCP website. However, if you would like to, you can change your cookie settings at any time.

Close

Certificate in
Real Estate Finance and Investments

With the Certificate in Real Estate Finance and Investments, students will be well prepared to confidently pursue a career in commercial lending and real estate finance.

Real estate markets are now highly competitive and companies often rely on well-trained workers capable of making investment decision in an environment of complexity.

For investors, intermediaries and other real estate players to remain successful, building experience in an exceedingly specialized market has become a must.

With this Certificate, you will receive an excellent training that allows you to learn thoroughly the new trends and techniques in the field of real estate finance and investments.

Objectives


1

Practice the valuation of revenue generating properties by applying sound asset pricing methods and using Excel to perform pro-forma analysis

2

Learn how to design mortgages that meet the needs of different investors

3

Practice the pricing of mortgage debt when default and prepayment are possibilitie

4

Make optimal refinancing decisions

5

Understand the implications of leverage in real estate

6

Understand the implications of different capital structures in real estate assets

7

Model sophisticated real estate “waterfall” spreadsheets with Excel for a variety of different capital structures and scenarios

Curriculum


  • Introduction to Real Estate Valuation

Introduction to Real Estate Valuation

In this module, we will discuss how the real estate system relates to investment analysis of commercial property. Emphasis will be put on understanding the determinants of real estate yields (cap rates) through a series of exercises revising historical series and macroeconomic events. After this initial introduction, we will review the basic formulas and procedures for converting typical real estate future cash flows and risk patterns to present value. In doing so, we will use both Excel and the financial calculator for finding numerical solutions. Finally, we will review the convenience of using the CAPM formula in real estate valuation, and practice some basic techniques to measure diversification and arbitrage in real estate investments.

  • Commercial Mortgage Debt

Commercial Mortgage Debt

The real estate debt market is a large, deep and sophisticated source of funding that requires a rigorous modelling and quantitative analysis. In this module, we will introduce the basic concepts and methodology useful for dealing with real estate debt from the investor’s perspective.  We will use Excel to compute mortgage payments and balances for a variety of loan types, compute mortgage yields to evaluate mortgages, and model the implications of refinancing and prepayment decisions. This module will also review the basic real estate investment model, which is a necessary step towards the understanding of a more sophisticated analysis of real estate investment decisions including multiple layers of debt and equity. Module III will address this extension.

  • Real Estate Equity Investments & Capital Structure

Real Estate Equity Investments & Capital Structure

This module moves beyond debt to consider sophisticated capital structures with multiple layers of debt and equity. We will extend the setting used in the previous module to construct “water falls” Excel spreadsheets to model a variety of situations, including private equity investment and distress commercial real estate debt. This module relies heavily on case studies. At the end of this module, students will be able to create sophisticated Excel spreadsheets and run sensitivity analyses covering the whole spectrum of real estate finance decisions.

Audience:

  • Professionals with an MBA or other master’s degree who are ready to advance or change careers
  • Individuals with undergraduate degrees who are considering additional education in real estate finance or have an interest in exploring real estate as a professional area of interest
  • Master and MBA students who need an extra specialized certification as part of their curriculum

Fees - €2.000