REALTOR University Real Estate Program
Leanne has been invited to write a 12 part series for her Master’s of Real Estate program. The REALTOR University hopes that this informative review will inspire other agents who might be interested in furthering their education as well.
My class in Commercial Real Estate and Financial Analysis illuminated some of the most important aspects of real estate, the financing. During the classes, I learned how to break down a mortgage, understand the true costs of a loan, and thereby the true cost of money invested when purchasing commercial buildings. We evaluated the profitability of a property using the cash flow involved after expenses and taxes.
After obtaining all this knowledge, I put it towards my final paper. My final paper was for a subject property located in Denver which was listed for $5,400,000 claiming to be 100% leased. However, after careful inspection of lease details, the property was found to have vacancies within the following six months, thereby changing the estimate cash flow. Throughout this paper I talked about the critical components and the calculations.
Taking this class got me excited about the potential of working on commercial projects for people who want to buy real estate for investment purchases. It also showed me how complicated a commercial real estate transaction can be; with that much money at stake mistakes could be very costly. Therefore, I have a very healthy respect for the work of a commercial investor. Click here to see the full article on the Realtor University website.