Pre-Investing: Essential Real Estate Investing Concepts from Udemy

UPDATE: Instructor Symon He hosts near daily LIVE office hours on TikTok 10:30PM PDT. Find him @SymonHe.

Theodore Papadopoulos - 5 Stars

“This course is an excellent primer on real estate investing. I would highly recommend this course to anyone interested in learning some real world core concepts. Symon starts off basic and builds on concepts learned in previous lectures. In summation, this course will teach you some basic mechanics in how to evaluate a real estate deal.”

Susan Corry - 5 Stars

Symon did a great job of explaining the fundamentals of real estate investing. It was the perfect introduction for me and gave me the confidence to continue with more complex course subjects.

Jacob Nelson - 5 Stars

Great course. Symon is obviously 1) very knowledgeable on real estate investing 2) skilled at training others. The combination makes for a great course. Thanks for creating this. Can't wait to check out his other stuff

Do you have absolutely ZERO knowledge or experience in real estate investing but want to get started?

Do you have the drive and ambition but you're just not sure where to start?

Do you feel overwhelmed with the seemingly endless choices and options available to new investors?

Should you start with fix & flips, rentals, wholesaling, lease options, or something else entirely?

What is the smartest way for a new investor to start?

In other words, what should you know before making your first investment?

If you want to learn the most important real estate invest concepts and develop a solid foundation as a first step towards your real estate investing education, this is your course.

If you’re still unsure, here are some of the questions I get asked many by prospective students:

I don't live in the US, is this course still relevant to me?

Yes. While the examples I use are USA properties (because the vast majority of my students are from the USA) ALL of the concepts taught and tools provided are just as useful for any market around the world. In fact, I have students from over 190 countries who are learning and using the tools provided in the course to help them invest wherever they are located.

How is this different from your other courses?

My other real estate courses here are all focused primarily on investment analysisone focusing on analyzing fix & flips and rental income properties, another that focuses only on multifamily, and a third, more comprehensive, course that covers residential as well as a host of other commercial real estate scenarios. The other courses all go deeper on the analysis side but do not touch on many of the topics I cover here.

You can think of those courses as getting down to the ground level in terms of detail and this course is at the 30,000 ft. level, just getting the overall scope of things without getting you bogged down in numbers and details.

What if I already have some real estate background?

This course is NOT for you. This is meant for beginners and those who little to no existing knowledge. Although, I will say that some students with experience found this to be a nice refresher, especially the section on real estate cycles. If you are an experienced investor, you may find some valuable insights in here, just please be aware that this course is designed for brand-new investors.

Why is there so much math and numbers?

Math is a necessary evil to understanding real estate investing. If you can't do the math, it'll be difficult for you to really get a firm grasp on the concepts. If/when you're confused, just leave a message in the forumsI usually respond within 48 hours. For what it’s worth, there is WAY more math in my other, more advanced courses. I've put the bare minimum here. Every serious investor needs to be able to do these investment calculations. If your math is rusty, now is the time to get a handle on it.

Why do you use Excel so much?

Good question. Analyzing real estate investments involves looking at the numbers and it's easiest to do that with spreadsheets, which is why I use Excel extensively. The good news is you don't have to build any of the models yourself. I’ve done all the hard work for you. You just need to be able to follow along and use the models I’ve created for you.

Can you make me rich by taking your course?

No way. Not just from taking the course, at least. Anyone who promises you that is selling snake oil. If you take my course AND apply what you’ve learned to make smarter investments in the future, then you have a chance at creating some major profits.

What I can guarantee is that you will leave with some serious real estate investing knowledge and techniques.

What else does this course cover besides real estate investing?

This course is ALL about and ONLY the foundational real estate investing concepts.

What will I be able to do after I take your course?

After taking my course, you will be:

• Able to confidently use professional real estate investment techniques.

• Able to evaluate both residential and commercial real estate opportunities.

• Able to structure investments with business partners in a smart and equitable way via the waterfall framework

• Know how to identify and mitigate investment risks.

Sunil Ramsumair - 5 Stars

“Very informative, great instructor and course material, I am very happy with the content of the course.”

Ethan Wong - 5 Stars

“Yet another successful course from Symon. Even though I have some experience as an investor, I found this class to be quite valuable. Although I was already quite familiar & comfortable with the course material and topics, the experiences gained from completing the exercises showed me where I have a couple weaknesses in my network. That alone made the class worth my investment…”

What WON'T I get from this course?

• You won’t get any kind of real estate license from taking this course. You can only get licensed by taking the appropriate test with the testing agency of your state and country. But what I teach in this course has nothing to with getting a license, which focuses on how to legally facilitate transactions in real estate between buyers and sellers. This course is about the investor's prospective.

• I will not be evaluating your personal investment deals for you for this course. This is about you learning how to do it on your own using the lessons and the tools here. If you really want me to consult with you privately, you can reach out to me. My hourly rate is $350/hr.

• This course does not cover any of the wide range of OTHER real estate topics, which deserve their own courses, including but not limited to: contract negotiations, real estate legalities, real estate marketing, REITs, etc... I try to cover the most important concepts as they relate to evaluating investment opportunities.

What’s holding you back?

Are you afraid this course won’t work? I promise you it will.

Are you afraid this course will work and you’ll actually have to start investing? I think that’s a pretty good problem to have.

Are you afraid it will take time and effort? It will. Real estate isn’t an easy business, if it was everyone would do it. But if you put in the work I promise you’ll see results.

Best of all, there is absolutely ZERO risk. Udemy gives you a 30-day money back guarantee to ensure you get what you pay for.

So go ahead, sign up and let’s get to work right away.

-Symon

What's inside

Learning objectives

Gain a broad foundational knowledge base for real estate investing
Understand the different phases of the real estate market cycle
Understand how to determine the right investment strategy for your goals
Understand the many ways to invest in real estate
Be able to use the cost method to value a property

Be able to use the comparable sales method to value a property
Be able to use the income method to value a property
Understand how leverage affects investments
Predict the likely timing of the next real estate market peak and crash

Gain a broad foundational knowledge base for real estate investing
Understand the different phases of the real estate market cycle
Understand how to determine the right investment strategy for your goals
Understand the many ways to invest in real estate
Be able to use the cost method to value a property
Be able to use the comparable sales method to value a property
Be able to use the income method to value a property
Understand how leverage affects investments
Predict the likely timing of the next real estate market peak and crash

Syllabus

Start Here

Welcome

Hi,

If this is your FIRST time taking a Udemy course, please review the New to Udemy section at the end of the curriculum first--the lectures there will help you understand the features of the Udemy platform and how you can get the most out of your learning experience.

Thanks!

Symon

Follow along as Joe goes through the process of deciding the where and what and how much of his first investment in real estate.

Why invest in real estate when historically speaking, stocks have consistently out performed real estate over the long term?

We take a quick moment to meet Joe and get an understanding of his situation and what he's looking to do.

We follow Joe as he considers four cities but ultimately narrows it down to one to make his first investment.

With the market chosen, Joe now again must choose from among several choices. Which property will he ultimately go with? What are is reasons?

Zillow Alternatives

Joe is presented with the choice to put a low downpayment on his investment or a much higher downpayment. Which option should he go with?

Here, we take a look at Joe's financial analysis for his investment. This back of the envelope model will come back later.

Check out my latest articles

Understand the various different ways available for investing and each of their pros and cons

A quick overview of the many different ways an investor could invest in real estate.

A brief overview of the many different asset types in both residential and commercial real estate.

A brief overview of the three primary investment strategies for real estate investing and a look at their relative risk/reward trade off.

Answer two questions to determine which is the best strategy for you to start with.

Quiz to test your knowledge from this section

Understand the phases of every real estate cycle

What are the phases of the real estate cycle?

The US real estate market began its recovery from the 2008 housing crash in approximately 2011-2012. What characterizes the recovery phase?

With most markets having recovered significantly from their lows in 2011-12, many of the markets are now well into their expansion phase, with significant growth in building activity.

Chasing what seem like endless growth, developers go into a phase of hypersupply and create the supply that will depress prices and rents well into the recession phase.

As home prices and rents fall, the real estate market tends to take 3-5 years to hit bottom due to the continued influx of oversupply that are created during the hypersupply phase.

Barring a major world conflict, a major trade war, or an aggressive Federal Reserve, when can we expect the housing market to peak and ultimately crash again?

Learn to use the three different methods to value a property

What is the difference between price and value? And why does the ability to value a property matter for investing?

We run through an example of using the Cost Approach to valuation.

We run through an example of using the Comparable Sales Approach to valuation.

We run through an example of using the Income Approach to valuation.

Do your own valuation!

Understand the factors that impact your market research efforts for your investing

Some popular resources to obtaining data for your market research

How to conduct a regional analysis and what factors to consider.

How to conduct a neighborhood analysis and what factors to consider.

How to conduct a competitive analysis using a rental comparison worksheet.

Quiz to test your knowledge from this section.

Understand how and when to use the important measures to evaluate investment opportunities

What are measures of returns?

A very important concept--the time value of money--is introduced here. This is the foundation of all financial analysis in real estate. Pay close attention!

How to think of the discount rate when using the NPV metric.

In this lecture, we walk through an example to show how different investments generate different NPVs.

One important part of evaluating an investment is determining how efficient the investment generates returns for the investor. We do this through the use of the internal rate of return metric.

Here we look at an exercise to show you how different investments generate different levels of IRR and how it can be misleading.

The other part of evaluating an investment is determining how bit the magnitude of return the investment generates for the investor. We do this through the use of the cash multiple metric.

So how and when do you use the different measures? Just toss a coin and randomly pick one? Nope!

A detailed look at why investors must use MULTIPLE measures (at least 2!) in their analysis.

For investors who wish hold onto a rental income property indefinitely, the analysis requires the use of the terminal value formula.

Two very important metrics for income producing investments, especial for multifamily/multi-unit properties.

Wrapping up and reviewing the many topics discussed in this section.

Understand how leverage impacts an investment

What is leverage and why do we care?

A comparison of interest only versus amortized loans.

A detailed look at the amortization calculator.

A look at how leverage affects investment returns.

Summary review of all the topics discussed in this section.

Learn to use a back of the envelopment model to analyze a rental

Case Study Overview

What information do you need to gather in order to conduct a property analysis?

Continuation...gathering more information needed for the analysis.

With all the data gathered, we're not ready to run the actual analysis using the model.

Updated BOE Model (Up to 50 Years)

Run your first rental income investment analysis

Well Done!

Wow! You've gone through quite a bit of material...well done! So what's next?

Extra material for your!

A look at the economics of doing a rental by offering a lease to own option to your tenant. How do you analyze a scenario like this where the tenant may or may not exercise the option?

Part 1 of 2 on how to build a back of the envelope investment model from scratch using Excel.

Part 2 of 2 on how to build a back of the envelope investment model from scratch using Excel.

For new students of Udemy

Overview of some useful Udemy features like speeding up lectures, bookmarking, downloading files, and how to to ask questions to the Q&A forum.

Udemy Technical Issues

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Focuses on real estate investing and provides a broad and foundational knowledge base

Taught by Symon He, who is an experienced instructor in the field of real estate investing

Suitable for those with little to no prior knowledge or experience in real estate investing

Provides a strong foundation for learners seeking to understand the core concepts of real estate investing

Covers a comprehensive range of topics related to real estate investing

Emphasizes key investment strategies and teaches learners how to evaluate investment opportunities

Reviews summary

Real estate investing fundamentals

According to students, Pre-Investing: Essential Real Estate Investing Concepts helps learners understand real estate investing fundamentals. Learners say the course is a good introduction to real estate investing, providing a solid foundation for beginners.

Course is a good intro to real estate investing.

"This course really open my eyes on how an real estate investor looks at purchasing a property for rent or sale."

Career center

Learners who complete Pre-Investing: Essential Real Estate Investing Concepts will develop knowledge and skills that may be useful to these careers:

Real Estate Investor

As a Real Estate Investor, you will invest in properties to make a profit. This course can help you develop the skills you need to succeed in this role by providing you with a comprehensive understanding of real estate investing. You will learn about different investment strategies, how to evaluate investment opportunities, and how to manage your investments.

See salaries and explore the career path for Real Estate Investor

Real Estate Agent

As a Real Estate Agent, you will help clients buy, sell, or rent properties. This course can help you develop the skills you need to succeed in this role by providing you with a comprehensive understanding of the real estate market. You will learn about the different phases of the real estate cycle, how to value properties, and how to negotiate contracts.

See salaries and explore the career path for Real Estate Agent

Real Estate Appraiser

As a Real Estate Appraiser, you will determine the value of properties. This course can help you develop the skills you need to succeed in this role by providing you with a comprehensive understanding of property valuation. You will learn about the different methods used to value properties and how to write appraisal reports.

See salaries and explore the career path for Real Estate Appraiser

Realtor

As a Realtor, you will help clients buy, sell, or rent properties. This course can help you develop the skills you need to succeed in this role by providing you with a comprehensive understanding of the real estate market. You will learn about the different phases of the real estate cycle, how to value properties, and how to negotiate contracts.

See salaries and explore the career path for Realtor

Property Manager

As a Property Manager, you will be responsible for managing residential or commercial properties. This course can help you develop the skills you need to succeed in this role by providing you with a comprehensive understanding of property management. You will learn about tenant relations, maintenance, and budgeting.

See salaries and explore the career path for Property Manager

Financial Analyst

As a Financial Analyst, you will use your knowledge of finance to make sound investment decisions. This course can help you develop the skills you need to succeed in this role by providing you with a comprehensive understanding of real estate investing. You will learn how to evaluate investment opportunities, determine the right investment strategy for your goals, and understand the many ways to invest in real estate.

See salaries and explore the career path for Financial Analyst

Mortgage Broker

As a Mortgage Broker, you will help clients obtain financing for their homes. This course can help you develop the skills you need to succeed in this role by providing you with a comprehensive understanding of the mortgage industry. You will learn about different types of mortgages, how to qualify for a loan, and how to close a deal.

See salaries and explore the career path for Mortgage Broker

Real Estate Developer

As a Real Estate Developer, you will plan, design, and build new properties. This course can help you develop the skills you need to succeed in this role by providing you with a comprehensive understanding of the real estate development process. You will learn about land acquisition, zoning, and construction.

See salaries and explore the career path for Real Estate Developer

Financial Advisor

As a Financial Advisor, you will help clients plan for their financial future. This course can help you develop the skills you need to succeed in this role by providing you with a comprehensive understanding of financial planning. You will learn about different investment strategies, how to manage risk, and how to help clients achieve their financial goals.

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Asset Manager

As an Asset Manager, you will be responsible for managing a portfolio of investments. This course can help you develop the skills you need to succeed in this role by providing you with a comprehensive understanding of investment management. You will learn about different asset classes, how to construct a portfolio, and how to manage risk.

See salaries and explore the career path for Asset Manager

Private Equity Associate

As a Private Equity Associate, you will invest in private companies. This course may be useful for you by providing you with a comprehensive understanding of private equity investing. You will learn about different investment strategies, how to value companies, and how to manage risk.

See salaries and explore the career path for Private Equity Associate

Venture Capitalist

As a Venture Capitalist, you will invest in early-stage companies. This course may be useful for you by providing you with a comprehensive understanding of venture capital investing. You will learn about different investment strategies, how to value companies, and how to manage risk.

See salaries and explore the career path for Venture Capitalist

Investment Banker

As an Investment Banker, you will help companies raise capital. This course may be useful for you by providing you with a comprehensive understanding of the financial markets. You will learn about different types of securities, how to value companies, and how to structure deals.

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Portfolio Manager

As a Portfolio Manager, you will manage a portfolio of investments for clients. This course may be useful for you by providing you with a comprehensive understanding of investment management. You will learn about different investment strategies, how to manage risk, and how to generate returns for clients.

See salaries and explore the career path for Portfolio Manager

Hedge Fund Manager

As a Hedge Fund Manager, you will manage a pool of money for investors. This course may be useful for you by providing you with a comprehensive understanding of investment management. You will learn about different investment strategies, how to manage risk, and how to generate returns for investors.

See salaries and explore the career path for Hedge Fund Manager