Real Estate Development: Building Value in Your Community from Coursera

What's inside

Syllabus

Introductions & General Principles

Welcome to the course! In this module, we will explore the concept of "real estate development." We'll outline the roles and responsibilities of real estate developers and discuss the steps involved in each phase of a development project. Additionally, we'll consider how important it is to manage time effectively throughout a project.

Idea and Approach

In this module, we will discuss strategies developers employ to evaluate which projects to pursue. We'll consider what kinds of goals motivate various developers, and discuss the implications of those motivations on project choices. We’ll close with an exploration of different types of risk, showcasing how to bring together all of the concepts discussed in this module in an authentic scenario where we walk through a project evaluation exercise.

Feasibility Through Due Diligence

In this module, we will explore the importance of conducting due diligence to identify potential risks, liabilities, and obligations before purchasing a property or pursuing a project. We will also discuss strategies to mitigate risk, including analyzing comparative sales, researching market rent data, and developing detailed construction budgets. We’ll conclude by examining how to build a project’s capital stack to ensure that there are enough capital sources to cover all of a project’s intended uses.

Financing

In this module, we will delve into the financial benefits of real estate and begin to understand how to analyze a project’s financial performance. We will discuss how to approach a lender and how they evaluate real estate projects. We’ll also discuss the difference between using debt in your real estate project versus exclusively using equity, and the impacts of both on a project’s financial returns. We will close by explaining return metrics and the variables needed to calculate such metrics.

Financial Modeling

In this final module, we will explain how to interact with and evaluate a real estate financial modeling tool known as the “pro forma”. We will demonstrate how to input assumptions, market data, and other property information and then evaluate a project’s feasibility and financial performance. By walking through a case study, we will explore the various tabs in the pro forma and how such information functions together. We will close by performing a sensitivity analysis using the pro forma to examine the best, most likely, and worst-case scenarios for the real estate project modeled in the case study.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Teaches the fundamentals of real estate development, which are essential for building projects that align with community needs and create lasting value

Provides immersive augmented reality experiences that enable learners to examine and analyze real estate development projects in their own neighborhoods

Cultivates an understanding of how to assess a project's feasibility, manage risk, and secure financing

Emphasizes the importance of community involvement and the social impact of real estate development

Leverages a financial modeling tool to equip learners with skills for evaluating project performance and making informed financial decisions

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Real Estate Development: Building Value in Your Community with these activities:

Organize Your Course Materials and Notes

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Create a structured system to manage your course materials, ensuring easy access and efficient review.

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Gather and organize lecture notes, assignments, and readings.
Create folders and use a consistent naming convention.
Utilize digital tools or physical binders for storage.

Review Principles of Finance

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Refresh your foundational financial knowledge to enhance your understanding of real estate financial modeling.

Browse courses on Financial Analysis

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Review textbooks or online resources on financial principles.
Solve practice problems and case studies.

Join a Real Estate Development Discussion Group

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Engaging with peers and professionals in the field can provide valuable insights and perspectives on real estate development.

Browse courses on Networking

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Search for real estate development discussion groups online or in your local community.
Join the group and actively participate in discussions.
Attend group meetings and events.

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Attend Local Real Estate Industry Events

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Connect with professionals in the field, learn about industry best practices, and explore new opportunities.

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Identify and attend local real estate networking events.
Engage with industry professionals and exchange ideas.
Explore potential collaboration and business opportunities.

Familiarize Yourself with Pro Forma Models

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Understanding pro forma models is crucial for evaluating the financial viability of real estate projects.

Browse courses on Financial Modeling

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Enroll in an online course or workshop on real estate financial modeling.
Follow tutorials on YouTube or other video platforms that demonstrate how to use specific pro forma models.
Download and practice using a pro forma model template.

Explore Case Studies of Successful Real Estate Developments

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Gain insights from the successes of others by studying how they navigated real estate development projects.

Browse courses on Real Estate Development

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Research and identify case studies of noteworthy developments.
Review project plans, financial documents, and impact reports.
Analyze best practices and lessons learned.

Join a Study Group for Real Estate Finance

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Collaborate with peers, engage in discussions, and enhance your understanding through group study sessions.

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Form a study group with fellow students.
Establish regular study schedules.
Review course materials together and discuss concepts.

Analyze Real Estate Development Cases

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Enhance your understanding of real estate concepts and financial metrics by working through case studies.

Browse courses on Financial Modeling

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Identify key project details and assumptions.
Analyze market data and comparable sales.
Estimate construction and operating costs.
Develop a financial model using the pro forma template.

Conduct Due Diligence Case Studies

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Applying due diligence principles to real-world scenarios will enhance your ability to assess the risks and opportunities associated with real estate projects.

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Identify a potential real estate investment opportunity.
Gather relevant data and documents related to the property and its market.
Analyze the data to identify potential risks and opportunities.
Develop a written report summarizing your findings and recommendations.

Develop a Real Estate Investment Plan

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Apply your knowledge in a practical setting by creating a comprehensive investment plan for a real estate project.

Browse courses on Feasibility Analysis

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Identify potential development opportunities.
Conduct market research and due diligence.
Develop a financial model and investment strategy.
Outline a plan for implementation and project management.

Write a White Paper on Real Estate Development Trends

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Deepen your understanding of industry trends and share your insights with others through a comprehensive white paper.

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Research and gather data on market trends and innovations.
Analyze data and identify key insights.
Write a compelling and informative white paper.

Develop a Neighborhood Analysis Report

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Creating a neighborhood analysis report will help you develop a deep understanding of the factors that influence real estate development and community building in a specific area.

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Select a neighborhood that interests you.
Gather data on demographics, housing market, local businesses, and community amenities.
Conduct interviews with residents and local stakeholders.
Analyze the data to identify trends, challenges, and opportunities.
Write a report that presents your findings and recommendations.

Develop a Presentation on Real Estate Investment Opportunities

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Summarize your understanding of real estate investment strategies and articulate your insights through a professional presentation.

Browse courses on Investment Analysis

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Research and identify investment opportunities.
Develop a financial model to evaluate potential returns.
Create a compelling presentation that communicates your findings.

Career center

Learners who complete Real Estate Development: Building Value in Your Community will develop knowledge and skills that may be useful to these careers:

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Real Estate Development

Building Value in Your Community

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