Release Date: November 2023
Course length: 8 hours/8 modules
Level: Introductory
Designed for: Entry-level professionals in development, asset management, finance, investment and brokerage.
Course Access: Upon enrollment, students have 90 days to complete this course.
New for 2023! The concepts presented in this course provide a critical foundation for any professional working in commercial real estate. One of NAIOP’s most popular courses, it provides entry-level professionals with the basic knowledge and skills necessary to determine the value of real estate assets and analyze real estate investment opportunities. The content is ideal for developers, investors, asset managers and owners who have very little financial analysis experience. Gain understanding of real estate market participants; valuation fundamentals; financial analysis metrics; determinants of real estate returns; the impact of leverage on real estate investments; interactions between the real estate space market and the capital market; and more. After completing this course, build on what you’ve learned by taking the Advanced Real Estate Finance course next.
Course modules:
- Introduction to Space Markets and Capital Markets
- Real Estate Valuation Using Direct Capitalization
- Real Estate Valuation Using the Discounted Cash Flow Approach
- Real Estate Leases
- Determinants of Real Estate Returns
- Introduction to Debt Financing
- Leveraged Real Estate Investments
- Case Study Analysis
After completing the course, students will be able to:
- Describe space market and capital market interactions
- Identify relevant real estate terminology
- Evaluate the risks involved in real estate investing
- Construct a basic operating statement
- Estimate the value of an income producing property
- Utilize investment analysis techniques including NPV and IRR
- Differentiate between different types of lease structures
- Examine the impact of debt financing
- Analyze key financial ratios and property metrics
If you would like to purchase an individual course module instead of the full course, visit the individual course page.
Tuition & Register
Payment for a NAIOP on-demand course entitles access for one person only to the course and all materials.
Course Tuition
| Member Type | USD | CAD |
| Member | $389 | $525 |
| Nonmember | $599 | $809 |
| Developing Leader | $280 | $378 |
| University Faculty Member | $149 | $201 |
| Student Member | $149 | $201 |
| Student Nonmember | $199 | $269 |
How to Register
- Register online: Click on the green Register button at the top of the page. You will need to log in or create a free account in order to see the Register button.
- Mail: Send check payments to: NAIOP, CL500060, PO Box 5007, Merrifield, VA 22116-5007
- Register over the phone/questions: 800-666-6780
Note: You have 90 days from the date you register to complete this course.
Confirmation
All registrations processed online receive an automatic order confirmation and receipt. If you register via mail or phone, a receipt must be requested by contacting education@naiop.org.
Login instructions to access the on-demand course are sent under separate cover from NAIOP Learning. If you do not received the login instructions, please check your spam folder. If the login email is still not there, please contact the NAIOP Education Department.
Cancellation Policy
No refunds will be issued.
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Module 1 - Introduction to Space Markets and Capital Markets
Begin self-paced component package.
Begin self-paced component package.
This module provides an introduction to space markets and capital markets and discusses real estate as an asset class.
After completing this module, students will be able to:
1. Define space markets and capital markets
2. Explain why real estate is a unique asset class
3. Identify major property types and classifications
4. Describe the four quadrants of the capital markets
5. Discuss investment strategies
6. Examine historical real estate returns
Module 1 Slides - Intro to Space Markets and Capital Markets
Open to download resource.
Open to download resource.
Module 2 - Real Estate Valuation Using Direct Capitalization
Begin self-paced component package.
Begin self-paced component package.
This module focuses on how to estimate value using the direct capitalization method, including how to construct a real estate operating statement and determine capitalization rates.
After completing this module, students will be able to:
1. Utilize the direct capitalization approach to estimate property value
2. Develop an operating statement
3. Define net operating income
4. Discuss capitalization rates
5. Calculate capitalization rates using market extraction
6. Interpret the relationship between capitalization rate and property value
Module 2 Slides - Real Estate Valuation Using Direct Capitalization
Open to download resource.
Open to download resource.
Module 3 - Real Estate Valuation Using the Discounted Cash Flow Approach
Begin self-paced component package.
Begin self-paced component package.
This module focuses on how to estimate value using the discounted cash flow approach and how to analyze an investment opportunity by calculating net present value and internal rate of return. It also includes a 20-minute Excel tutorial video.
After completing this module, students will be able to:
1. Conduct property valuation using the discounted cash flow approach
2. Estimate cash flows from operations over a holding period
3. Estimate net proceeds from a sale using a terminal cap rate
4. Define and calculate net present value (NPV)
5. Define and calculate internal rate of return (IRR)
Module 3 Slides - Real Estate Valuation Using DCF
Open to download resource.
Open to download resource.
Module 3 Excel Tutorial
Open to view video.
Module 4 - Real Estate Leases
Begin self-paced component package.
Begin self-paced component package.
This module provides an overview of commercial real estate leases, including the different types and structures of leases, lease terminology and strategies for mitigating vacancy. It also instructs learners on how to incorporate tenant reimbursements into an operating statement and how to calculate effective lease rates.
After completing this module, students will be able to:
1. Differentiate between gross and net leases
2. Explain how lease structures influence the valuation process
3. Incorporate tenant reimbursements into an operating statement
4. Calculate effective lease rates
5. Define key lease terminology
Module 4 Slides - Real Estate Leases
Open to download resource.
Open to download resource.
Module 5 - Determinants of Real Estate Returns
Begin self-paced component package.
Begin self-paced component package.
This module examines the relationship between the two primary valuation methods, the discounted cash flow approach and direct capitalization, with a particular focus on the relationship between discount rates and cap rates. It also discusses the key economic drivers of cap rates, discount rates and property values.
After completing this module, students will be able to:
1. Explain the relationship between discount rates, cap rates and an investor’s total return
2. Outline the factors that impact discount rates and cap rates
3. Identify sources of discount rate and cap rate data
Module 5 Slides - Determinants of Real Estate Returns
Open to download resource.
Open to download resource.
Module 6 - Introduction to Debt Financing
Begin self-paced component package.
Begin self-paced component package.
This module provides an introduction to commercial real estate debt financing, including a walk-through of key loan agreement provisions and guidelines on calculating loan payments and balances.
After completing this module, students will be able to:
1. Identify sources of commercial mortgage financing
2. Discuss different types of mortgages
3. Define mortgage terminology
4. Describe prepayment penalties
5. Explain the relationship between leverage and risk
6. Calculate loan payments and loan balances
Module 6 Slides - Introduction to Debt Financing
Open to download resource.
Open to download resource.
Module 7 - Leveraged Real Estate Investments
Begin self-paced component package.
Begin self-paced component package.
This module goes over how to incorporate debt financing into the calculation of cash flows and real estate investment analysis and covers the metrics lenders utilize for underwriting a loan.
After completing this module, students will be able to:
1. Incorporate debt financing into a pro forma
2. Discuss the concept of positive leverage
3. Calculate equity before tax cash flow and the equity reversion
4. Calculate a levered internal rate of return (IRR)
5. Describe key financial ratios including LTV, DCR, BER
6. Discuss discount points and loan closing costs
7. Calculate lender’s yield and effective borrowing cost
Module 7 Slides - Leveraged Real Estate Investments
Open to download resource.
Open to download resource.
Module 8 - Case Study Analysis
Begin self-paced component package.
Begin self-paced component package.
This module includes a two-part case study for property analysis for which students can apply the valuation and leverage fundamentals they have learned in this course.
After completing this module, students will be able to:
1. Analyze a case study utilizing knowledge of property valuation and debt financing
Module 8 Slides - Case Study Analysis
Open to download resource.
Open to download resource.
BREF Exam - Required for Certificate Candidates
30 Questions | 5 attempts | 24/30 points to pass
30 Questions | 5 attempts | 24/30 points to pass
If you are a NAIOP certificate candidate, the test is required. You must get 24 out of 30 questions correct in order to pass the test. You have five attempts to pass the test.
Basic Real Estate Finance Skipping the Exam Acknowledgement
Agree to terms to continue.
Agree to terms to continue.
If you are not planning on taking the test, please click the Read Terms button. Then you will be able to complete the Evaluation and print your transcript.
Basic Real Estate Finance Evaluation
7 Questions
7 Questions
Please fill out this evaluation in order to get credit for the course.
BREF Transcript
8.00 CEUs credits | Certificate available
8.00 CEUs credits | Certificate available
| Access Date |
Quiz Result |
Score |
Actions |
"This was a great introductory course to real estate finance! The hands-on pieces of the class accelerated my learning."
Tyler Binns, Project Manager, STACK Infrastructure Group
"Highly recommended for anyone looking to gain a basic understanding of real estate finance."
Roger Ploum, Division President, Irvine Company
"The Basic Real Estate Finance course gives a great overview of the fundamentals of real estate finance."
JD Barnes, Vice President – Development, Core5 Industrial Partners
