In this course, you will :
- explains everything you should know before making your first investment
- Learn how to create an investment strategy, how to value property using the comparable sales method, and how the different stages of a real estate market may affect you.
- With these suggestions, you can lay the groundwork for becoming an informed and profitable real estate investor.
1. Case Study: Joe's First Investment
- Why invest in real estate?
- Meet Joe
- Which market will Joe choose to invest in?
- Which property will Joe choose to buy?
- How much financing will Joe use?
- Quick peek at Joe's investment financial model
2. The Many Ways to Invest in Real Estate
- There is more than one way to invest in real estate
- Introduction to real estate asset types
- Introduction to investment strategies
- Strategies for first time investors
3. Real Estate Market Cycles
- Overview of real estate market cycles
- The recovery phase
- The expansion phase
- The hypersupply phase
- The recession phase
- The next bust?
4. How to Value a Property
- To buy profitably, you must value accurately
- The cost approach to valuation
- The comparable sales approach to valuation
- The income approach to valuation
5. Understanding Your Market
- Where to get the data
- Regional analysis
- Neighborhood analysis
- Competitive analysis
6. What Makes a Good Investment?
- What makes a good investment?
- Discounted cash flow and the net present value (NPV)
- Discount rate
- NPV demonstration
- Measuring efficiency: Internal rate of return (IRR)
- IRR demonstration
- Measuring magnitude: Cash multiple
- How to use the measures
- NPV vs. IRR
- The terminal value of an indefinitely held rental
- Investment yields and capitalization rates
- Measures of return summary
7. Understanding Leverage
- Components of debt
- Interest-only vs. amortized loans
- The amortization calculator
- How leverage impacts investment returns
- Debt leverage summary
8. Case Study: Rental Income Property Analysis
- Market research
- Detailed look at the back of the envelope (BOE) analysis