NCREC-Approved Electives

Investment FUNdamentals: What's my return on investment?


Description
This is a challenging course is designed for serious real estate practitioners, appraisers, and investor-wannabes who want to understand more about how to calculate returns on investment. Students receive a professional textbook and an Excel spreadsheet with enrollment in the course.

Students must use a calculator to class, but it can be a simple, hand-held calculator. We will work together step-by-step on creating a investment analysis using the most sophisticated ROI--financial management rate of return. The course focuses on long-term (more than one year) investments rather than short-term.

Course Number: 3898 Name of elective cou...: Investment FUNdamentals: What's my retur...

Content
  • Section 1 INTRODUCTION AND HOUSEKEEPING
  • 1.1 Introduction from Debbie
  • 1.2 Video: How to navigate this course
  • 1.3 Course description
  • 1.4 Course objectives and goals
  • 1.5 Rules of engagement
  • 1.6 The instructor
  • Section 2 calculating Cap rates
  • 2.1 Topics for this section
  • 2.2 Qualifying investors
  • 2.3 Yield measurements
  • 2.4 Pro formas and capitalization rates
  • 2.5 A closer look: a pro forma
  • 2.6 A closer look: calculating the capitalization rate
  • 2.7 A closer look: Pro forma on the condo
  • 2.8 A Closer look: Problems with cap rates
  • Section 3 calculating equity dividend rates
  • 3.1 Topics for this section
  • 3.2 Calculating the cash-on-cash return
  • 3.3 A closer look: Calculating the cash-on-cash return
  • 3.4 A closer look: Before-tax cash flow
  • 3.5 A closer look: Limitations of the cash-on-cash return
  • Section 4 calculating tax consequences
  • 4.1 Topics for this section
  • 4.2 Calculating taxable income
  • 4.3 A closer look: Calculating taxable income
  • 4.4 A closer look: Negative taxable income
  • 4.5 Calculating the after-tax equity dividend rate
  • 4.6 2019 tax brackets
  • 4.7 2020 Tax brackets
  • Section 5 calculating depreciation
  • 5.1 Topics for this section
  • 5.2 Calculating depreciation: a student asks a question
  • 5.3 A closer look: cost basis
  • 5.4 impact of depreciation on taxable income
  • 5.5 A closer look: Current residential depreciation rules
  • 5.6 A closer look: Current commercial depreciation rules
  • 5.7 A closer look: 1981 tax consequences
  • 5.8 A closer look: 1981 tax consequences if the 50% tax bracket still existed
  • 5.9 A closer look: How current depreciation rules affect the bottom line_24%
  • 5.10 A closer look: Current rules and the bottom line at 35%
  • 5.11 Wait...there's more!
  • Section 6 Calculating after tax consequences
  • 6.1 Topics for this section
  • 6.2 Calculating the tax savings on the equity dividend rate
  • 6.3 Calculating the tax savings on the equity dividend rate
  • 6.4 A few more pieces of the FMRR puzzle
  • 6.5 A closer look: Three potential taxes
  • 6.6 A closer look: Capital gains taxes
  • 6.7 A closer look: Depreciation recapture tax
  • 6.8 A closer look: Understanding the alternative investment's ROI
  • 6.9 A closer look: Understanding the alternative investment's ROI part 2
  • 6.10 A closer look: Understanding the alternative investment's ROI, part 3
  • 6.11 No more bananas
  • Section 7 Seeing the Future
  • 7.1 Topics for this section
  • 7.2 A trip to the future with Table A
  • 7.3 Let's say you receive an inheritance
  • 7.4 Let's say that property will appreciate by 3%
  • 7.5 Seeing the future using Table B
  • 7.6 Let's say you are saving for retirement
  • 7.7 You want your kid to go to a good college
  • Section 8 Analyzing case study #1_The otts buy a kiddie condo
  • 8.1 Topics for this section
  • 8.2 Starting the Worksheets
  • 8.3 Worksheets 2-4
  • 8.4 Calculating the FMRR, Worksheet 5
  • 8.5 Download Case Study #1 Answer Key
  • Section 9 Analyzing case study #2_Mr Radcliff buys a commercial investment
  • 9.1 Topics for this section
  • 9.2 Using the Excel spreadsheet
  • 9.3 Using the spreadsheet
  • 9.4 It's your turn: create the investment analysis for case study #2
  • 9.5 Answer key to case study #2
  • Section 10 Summary and housekeeping
  • 10.1 Assumptions of the FMRR and summary
  • 10.2 You're almost done!
  • 10.3 End-of-course survey
  • 10.4 Just hit the complete button....
Completion rules
  • All units must be completed
  • Leads to a certification with a duration: until June 30