Developing Reliable Valuations for Investment Real Estate 3 CR Live

Real estate investments are complex assets that often lack transparency, making it difficult to identify credible sources of valuation insights. Brokers and investors are increasingly utilizing financial and economic impact data to value real estate investments, giving them a competitive advantage in the market.

In this presentation, we will explore the benefits of predictive analytics and provide an overview of the market factors to consider supporting value. We will break down various methodologies and provide an overview of the due diligence process for market and economic factors.

The value of a property is determined by both its current and future performance. This involves refining the capitalization rate approach, moving beyond a simplistic market average, and adjusting for various property-specific factors, debt costs, and economic conditions.

Throughout this course, we will differentiate between the capitalization rate and the discount rate, demonstrating how the discount rate is developed and applied. We will also explain why the return on investment properties must exceed the cost of borrowed funds.

You will learn:

· The impact of market forces on investment real estate.

· Explore data integrity across historical and real-time data and compare properties.

· Source data for the development of capitalization and discount rates.

· Review the annual cash flow model.

· How to generate financial ratios that are used to evaluate financial analysis.

· How to estimate the risk premium for investment in real estate.

· Discover how financing can impact equity returns.

· Establish benchmarks and apply performance attribution.