Real Estate Licensee's Guide to Analyzing Investment Properties
Course Description:
This four (4) hour course will provide licensees with a thorough understanding of the process involved in the physical and financial evaluation of an income property, with the emphasis on apartment buildings. The student will acquire the tools and skills necessary to identify and achieve a realistic selling price based on the results of the evaluation. To that end the student will learn to employ effective strategies for evaluating, and improving as appropriate, the financial condition of the property in order to assist a seller or buyer in achieving their respective investment objectives.
For a Real Estate Licensee's Guide to Analyzing Investment Property course near you, visit the Education Calendar.
How you will benefit from taking this course:
After attending this course, you will be able to
- Establish pre-listing strategies for achieving a reasonable or target selling price
- Identify and select an appropriate income property for a buyer based on his or her criteria and capacity.
- Perform a physical inspection of the property utilizing a detailed checklist and step-by-step procedure as the first step in the financial analysis.
- Perform the financial analysis, evaluating and validating income and expenses to determine they appear reasonable based on the property's characteristics.
- Identify those major components of the property likely to fail during the anticipated holder term, establish a corresponding "reserves for replacements" budget and a plan for its execution.
- Understand, employ and explain lender's guidelines and the evaluation process for determining the most appropriate financing available for the property.
- Provide an overview of various rates of return based on the results of the analysis that are likely to be discussed by the seller's and buyer's accountant or financial advisor.
- Provide the highest level of buyer and/or seller representation.
Course Outline
- Pre-listing Strategies
- Counseling the Seller
- Financial Clean-up
- Physical Clean-up
- The Property Inspection Process
- Understanding the Process
- Inspection Objectives
- Performing the Inspection
- The Inspection Checklist
- Income & Expense Analysis
- Income Analysis
- Expense Analysis
- Financing Guidelines
- Loan Prepayment Penalties
- Reserves for Replacements
- Reserve Fund Concepts
- Establishing the Reserve Fund
- Replacement Components
- Investment Analysis Process
- Cash Flow Analysis
- Taxable Income
- Investment Rates and Ratios
Who should attend:
REALTORS®, licensed real estate agents, brokers, attorneys, and real estate accountants as well as owners and prospective buyers of income properties.
Instructors:
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