Finance

Finance in real estate

real-estate finance: valuation by cap rate and NOI, leverage and debt structures, cash flow and the impact of interest rates, and development risk.

3 Modules·13 Leçons

Real estate finance runs on its own logic: value is driven by income streams, capital stacks, and the cost of debt, not just revenue and margin. This block builds sector-specific financial fluency, from how deals are structured and returns underwritten, to the ratios lenders and investors actually check before committing capital. You will work through the core mechanics of financing acquisitions and developments, learn the benchmark metrics used across US and European markets, and understand where deals typically fail financial scrutiny. The goal is practical command of the numbers: knowing what a cap rate, LTV, or DSCR really signals, how regulation shapes financing choices, and what a rigorous financial due diligence process looks for before money moves.

Ce que vous allez maîtriser

  • Read and interpret a real estate capital stack and explain how debt and equity layers affect risk and returns
  • Calculate and benchmark key metrics such as cap rate, LTV, DSCR, IRR and cash-on-cash return for a given deal
  • Identify the main financial risks in a real estate transaction, including leverage, interest rate and valuation risk
  • Perform a basic financial due diligence review to flag red flags before an acquisition or investment decision

Termes clés

Cap RateLTV (Loan-to-Value)DSCR (Debt Service Coverage Ratio)NOI (Net Operating Income)IRR (Internal Rate of Return)Capital StackMezzanine Debt

Modules

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Finance in real estate — Real Estate, MBA Training