Financial Analysis of Development Projects On-demand Course

Financial Analysis of Development Projects (FADP) provides students with the analytical theory and practical tools needed to appropriately evaluate the financial feasibility of complex value-added and opportunistic real estate investments, including ground-up development projects for all major property types, as well as commercial and residential rehabilitation.

Accounting, risk management, taxation, capital markets, and organizational issues influencing the financial viability of these real estate projects are also considered and discussed.

Among NAIOP finance-oriented courses, Basic Real Estate Finance and Advanced Real Estate Finance are good preparation for Financial Analysis of Development Projects, as is Real Estate Investment and Capital Markets. 

Financial Analysis of Development Projects also correlates with the purely development-oriented courses NAIOP offers, including Advanced Development Practices (ADP), Site Feasibility and Market Analysis (SFMA), and Construction Management for Developers and Owners (CMD).

Learning Objectives

After completing the course, students should be able to do the following:

  • Identify the major real estate indexes used to research market conditions
  • Describe how real estate developers assess the feasibility of real estate projects, including market, financial, physical, legal, political, and practical factors
  • Explain financial analysis that needs to occur during each stage of the real estate development life cycle
  • Complete a financial analysis of a value add project
  • Create a waterfall distribution
  • Explain real estate relevant tax classifications and exemptions
  • Describe a process for analyzing risk in real estate projects

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 TypeUSDCAD
Member$795$1,040
Nonmember$995$1,300
Developing Leader$595$780
Student Member$95$125
Student Nonmember$145$190


How to Register

  • Register online: Click on the green Register button. You will need to log in or create a free account in order to see the Register button.
  • Fax: Complete the registration form for US  or for Canada  and fax to 703-904-7003
  • Mail: Send check payments to: NAIOP, CL500060, PO Box 5007, Merrifield, VA 22116-5007
  • Register over the phone/questions: 800-666-6780

Confirmation

All registrations processed online receive an automatic order confirmation and receipt. If you register via fax, 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 . 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.

Key:

Complete
Failed
Available
Locked
FADPOD Module 1 Financial Strategies
Module 1 Financial Strategies Class Recording
Open to view video.
Open to view video. In this Module, we'll describe the interaction between space and capital markets. We will explain how the major real estate investment indexes can be used to research market conditions. The seven stages of the real estate development cycle and methods for calculating returns will be reviewed.
Module 1 Financial Strategies Presentation
Open to download resource.
Open to download resource. PDF of the presentation
FADPOD Module 2 Land Investment
Module 2 Land Investment Class Recording
Open to view video.
Open to view video. Most real estate professionals are focused on buildings, but most of the risk and reward in real estate is actually to be found in the land development phase, so learning the skills of this face is central to succeeding as a developer. In this Module, students will explore land investment strategies. We’ll summarize the calculations used to evaluate land and consider the risk and return requirements for land investments. The Module concludes with a review of the financial analysis of a land investment transaction.
Module 2 Land Investment Presentation
Open to download resource.
Open to download resource. PDF of the presentation
FADPOD Module 3 Building Investment
Module 3 Building Investment Class Recording
Open to view video.
Open to view video. This module will provide a thorough overview of financing and investing in development. We will discuss the complexities of valuing and assessing development projects and identify the differences between valuing a for-sale versus a for-rent development project. Students will learn how to deal with changes in project risk over time and how to determine the appropriate equity return for a development project.
Module 3 Building Investment Presentation
Open to download resource.
Open to download resource. PDF of the pressentation
FADPOD Module 4 Mixed Use Investment
Module 4 Mixed Use Investment Class Recording
Open to view video.
Open to view video. We will focus on financing and investing in a mixed-use development during this session. We'll discuss the complexities and nuances involved in mixed-use development projects and identify the factors that drive the phasing and inventory decision for a mixed-use investment.
Module 4 Mixed Use Investment Presentation
Open to download resource.
Open to download resource.
FADPOD Module 5 Value Add Investment
Module 5 Value Add Investment Class Recording
Open to view video.
Open to view video. Students will develop skills to identify and analyze value-added investment opportunities. In doing so, we will review key metrics, data points and structural issues used when evaluating value-added investments from both a debt and equity viewpoint.
Module 5 Value Add Investment Presentation
Open to download resource.
Open to download resource.
Module 5 Value Add Investment Case Study Value Add
Open to download resource.
Open to download resource.
Module 5 Case Study Template
Open to download resource.
Open to download resource.
Module 5 Case Study Answer Key
Open to download resource.
Open to download resource.
FADPOD Module 6 Deal Structuring
Module 6 Deal Structuring Class Recording
Open to view video.
Open to view video. In this session, we will examine the sources of equity financing and discuss the organizational forms and joint ventures for value added and opportunistic real estate investments. We will define terms associated with private equity arrangements and discuss the investment strategies pursued by private equity. Students will learn to analyze the fees structures of private equity investment vehicles and comprehend the workings of joint ventures, in addition to understanding common deal structures for private equity joint venture and partnerships with profit sharing and partitioned returns. We'll explore the commercial mortgage capital markets in terms of lenders, mortgage types and terms. We'll review the contents of a loan submission package and development and value-added loan underwriting guidelines and discuss how lenders make decisions on financing these properties. Finally, students will work through a case study/exercise detailing a private equity joint venture deal structure with profit sharing and partitioned returns.
Module 6 Deal Structuring Presentation
Open to download resource.
Open to download resource.
FADPOD Module 7 Accounting and Tax
Module 7 Accounting and Tax Class Recording
Open to view video.
Open to view video. This session will cover the various tax classifications and exemptions imposed on real estate in addition to addressing accounting and tax issues for development projects. We will explore affordable housing programs and discuss the Low Income Housing Tax Credit (LIHTC). Other tax incentives and programs that affect development will also be examined.
Module 7 Accounting and Tax Presentation
Open to download resource.
Open to download resource.
FADPOD Module 8 Risk Management
Module 8 Risk Management Class Recording
Open to view video.
Open to view video. The final course session will focus on risk management. We will identify and pinpoint risk exposures during the development process as a problem to be solved with a risk management solution. Students will gain a better understanding of the principal risk exposures in real estate development and how to assess the risk exposure and identify the assumptions which must be made in the process of recommending a risk management solution. We will discuss the differences between insurable versus uninsurable risks and address how insurable risk exposures and theoretical concepts of risk affect insurance policy design, coverage and contractual provisions.
Module 8 Risk Management Presentation
Open to download resource.
Open to download resource.
End of Course Items
FADPOD Test - 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.
FADPOD 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.
FADPOD Evaluation
7 Questions
FADPOD Transcript
16.00 PDH, AIA Learning Units credits  |  Certificate available
16.00 PDH, AIA Learning Units credits  |  Certificate available