CI 101 - Financial Analysis for Commercial Investment Real Estate

Essential Skills

Our gateway course covering the basics of commercial real estate finance is the most popular CCIM course. This course is enjoyed not only by those in traditional commercial real estate fields, but also by individual investors, allied professionals such as lawyers, CPAs and financial planners, and residential REALTORS®. By the end of this course you will be able to:

• Calculate the value of a property.
• Measure investment performance of a property using a variety of methods; the sales comparison approach, the cash flow model, net present value, discount rate and capitalization rate methods.
• Understand the components and structure of commercial real estate loans.
• Calculate before- and after-tax yields.
• Apply the principals of commercial real estate, investment fundamentals, tax regulations and related business subjects to real-world applications.

Overview

This flagship CCIM course offers an array of financial analysis concepts and calculations to help you make sound commercial investment real estate decisions. You will learn the fundamentals of profitable investing and apply these concepts to commercial properties. Advanced analyses covered throughout the course include the real estate cash flow model and time value of money. In addition, you'll learn how to accurately measure investment value and performance of a given property.

The course concludes with two comprehensive case studies in which you apply your newly acquired knowledge and skills to real-world scenarios. Begin your journey to success by enrolling today.

Highlights

Recap Investment Fundamentals

• Review investor and investment characteristics.
• Make investment decisions using investor preferences.
  

Master the Cash Flow Model; Understand Time Value of Money

• Learn the components of the real estate cash flow model
• Calculate net operating income (NOI) using source data.
• Solve time value of money calculations based on real estate situations.

Make Informed Financing Decisions

• Target appropriate financing sources.
• Learn the variables involved in commercial real estate loans.
• Know the criteria lenders use to evaluate a loan application.

Understand the Value of Appraisal

• Distinguish the difference between a property's price, value, and cost.
• Learn the appraiser's approach to determine value.
• Differentiate between the sales comparison, cost, and income approaches to establishing market value.

Determine Investment Value and Measure Investment Performance

• Determine investment value through the sales comparison approach.
• Identify the various methods for measuring investment performance, including the cash flow model.
• Learn to calculate net present value as a measurement of investment performance.
• Understand the difference between the discount rate and the capitalization rate.

Use Your Laptop Computer

• Practice analysis techniques using custom designed CCIM Excel®-based programs to solve case study problems
• Access additional references, tools and interactive business forms included on a customized
  CD-ROM

Comprehend Tax Implications

• Calculate tax liabilities from "tax world" and "real world" perspectives.
• Learn the difference between taxable income and cash flow before tax.
• Shelter taxable income through cost recovery deductions.

Course Details for CI101

Course Length: 5 days, 8:30 a.m. - 5:30 p.m.

Credit: 3 CCIM Core Course Credits

Prerequisites: None

Tuition:

Required Calculator: Hewlett-Packard financial calculator. The HP-10B II is highly recommended because of its reasonable costs and because CCIM course materials illustrate the keystrokes of this model.

Laptop Computer Strongly Recommended: This course uses Excel® worksheets provided on a CD-ROM to help solve the class activities and for use on the final exam. Students who bring laptops to class and are familiar with Excel® will receive the most benefit from the course material.

Student Technology Requirements:

Please view the CI101 technology requirements.

Examination: An exam is administered on the final day of class. A score of 70% or higher is needed to receive CCIM course credit.

For additional information on CCIM courses, please complete our course information request form, call (800) 621-7027, or send us an e-mail.

Other Courses

CI Intro - Introduction to Commercial Investment Real Estate Analysis
CI 102 - Market Analysis for Commercial Investment Real Estate
CI 103 - User Decision Analysis for Commercial Investment Real Estate
CI 104 - Investment Analysis for Commercial Investment Real Estate
CCR - Course Concepts Review