Commercial Real Estate Investing 101 from Udemy

Interested in commercial real estate investing, but don't really know where to start? Built by an instructor with over $1.5 billion of commercial real estate transaction experience, this course was designed to take you from complete beginner with no knowledge of the business to a comprehensive understanding of the many components of commercial real estate investing so you can do your first deal, land a lucrative new career opportunity, or both.

This course was created to help our students:

Land a high-paying job in commercial real estate investing - Commercial real estate investing can be an incredibly lucrative business, on a much larger scale than flipping houses or buying single family residences to rent. This course will provide you with the building blocks of understanding how to analyze, purchase, and manage commercial real estate properties using the knowledge and techniques of some of the strongest institutional investors in the industry.
Invest as a passive limited partner in large commercial real estate deals - Commercial real estate investments are generally complex and difficult to understand for those without a strong background in the industry. This course will give you a leg up on the competition, so when a friend, family member, or colleague comes to you with a real estate investment opportunity, you can evaluate the deal and invest with confidence.
Understand commercial real estate to invest in their own deals - Many would-be investors want to get into commercial real estate, but they just don't know where to start. This course will teach you the fundamentals of analyzing apartment buildings, retail shopping centers, office buildings and industrial properties for purchase, and how these deals are valued in the market.

This course includes graduate-level content which is taught every year in the top MBA and Master's in Real Estate programs across the globe, practically applied to real life scenarios and case studies in the commercial real estate investment industry.

Here's what some of our students have had to say:

"Awesome class. Engaging & real life application. Examples are well thought out and leave you wanting to learn more. On to the next 2 classes by Justin. Great teacher."

"This course is PERFECT. It covers everything you need to know about CRE and it is organized in a very clean and logic way. Mr. Kivel makes you understand the subject of the course easily, it is almost magic. Thank you, this is the most useful course I've done so far."

"This course is spot on. With almost no commercial real estate background, I really needed a deep dive into this topic that was easy to understand and absorb and this course delivered. I'm really impressed by the models and the instructor's depth of knowledge and clarity of explanations. Looking forward to his future courses. "

If you're looking to learn about commercial real estate investing to start your career in commercial real estate, buy your own deals, or invest in commercial real estate as a passive, limited partner, you've come to the right place. Join us.

What's inside

Learning objectives

Build the foundational knowledge and skill set to land a lucrative job in commercial real estate investing
Confidently analyze commercial real estate properties to purchase on their own or with partners

Understand the key real estate investment metrics sophisticated real estate investors use to analyze deals
Know how to use debt and equity to acquire properties and earn outsized returns on your initial investment

Build the foundational knowledge and skill set to land a lucrative job in commercial real estate investing
Confidently analyze commercial real estate properties to purchase on their own or with partners
Understand the key real estate investment metrics sophisticated real estate investors use to analyze deals
Know how to use debt and equity to acquire properties and earn outsized returns on your initial investment

Syllabus

Students will learn what this course is about and how they can benefit from the Commercial Real Estate Investing 101 course.

Welcome!

Who This Course Is For

About The Instructor & Student Successes

CRE Investing 101 Resources File - Download First!

Disclaimer

Students will learn about the different commercial real estate property types including multifamily properties, retail properties, office properties, industrial properties, and more in this section.

Retail Overview

Retail Property Types

Office Overview

Office Property Types

Multifamily Overview

Multifamily Property Types

Industrial Overview

Industrial Property Types

Hotel Overview

Hotel Property Types

Specialty Product Types Overview

Specialty Property Types

Students will learn how commercial real estate properties are measured in this section.

Measuring CRE - An Overview

The Stacking Plan

The Pro Rata Share Calculation

Students will learn about commercial real estate leases and lease structures in this section.

Introduction To Commercial Real Estate Leases

Triple Net (NNN)

Full Service Gross

Modified Gross

The Base Year Stop

Percentage Rent

Percentage Rent Exercise & Solution

Leasing Costs

LCs & TI Allowances Exercise & Solution

Other Key Lease Terms

Students will learn the key revenue drivers that affect operating revenue on commercial real estate properties in this section.

Gross Potential Rent (GPR)

Physical vs. Economic Vacancy

Expense Reimbursements, Caps, & Fees

Students will learn the key drivers of operating expenses at a commercial real estate property in this section.

Controllable Expenses

Non-Controllable Expenses

Utilities & RUBS

Property Management Fees

Students will learn the main drivers of capital expenses on commercial real estate properties in this section.

Tenant Improvements (TI) Allowances

Leasing Commissions

The Capital Expense (CapEx) Reserve

Students will learn about commercial real estate debt and financing in this section, including loan sizing metrics, mezzanine debt and preferred equity structures, and key loan terms in CRE.

Sourcing The Loan

Key CRE Loan Terms

Loan Amortization vs. Term

CRE Interest Rates Explained

The Interest-Only (I/O) Period

Future Funding & "Good News" Money

Prepayment Penalties

Loan Covenants

Mezzanine Debt

Preferred Equity

Loan Sizing (& How It Works)

The Loan-To-Value (LTV) Ratio

The Loan-To-Cost (LTC) Ratio

The Debt Service Coverage Ratio (DSCR)

The Debt Yield

Loan Sizing Based on Multiple Constraints

How Debt Magnifies Returns

Students will learn the key return metrics commercial real estate investors use to analyze and value commercial real estate properties in this section.

The Capitalization (Cap) Rate

Cap Rate Exercise & Solution

The Cash-on-Cash Return

Cash-on-Cash Exercise & Solution

The Internal Rate of Return (IRR)

IRR Exercise & Solution

The Equity Multiple

Equity Multiple Exercise & Solution

Students will learn how commercial real estate properties are valued by commercial real estate investors in this section.

The Real Estate Financial Analysis Framework

Making Operating & Sale Assumptions

Projecting Reversion (Sale) Value

Target Return Metric Valuation

Capital Risk Buckets

Capital Risk Buckets Walkthrough

Why All Cap Rates Are Not Created Equal

Students will learn about commercial real estate equity financing in this section, including joint venture and equity waterfall structures.

A Breakdown of JV Partnerships

Partnership Fee Structures

Equity Waterfall Structures

The Math Behind Equity Waterfalls

Equity Waterfall Excel Walkthrough

Students will learn various different tax advantages of investing in commercial real estate, and how investors use these tax advantages in this section.

Modeling Income Taxes

Interest & Depreciation Expense

After-Tax Analysis Excel Walkthrough

The 1031 Exchange

The Cash-Out Refinance

Students will learn how to put together everything they've learned in this course about commercial real estate investing in this section.

Wrapping Up

Bonus Lecture

Bonus Lecture - The Next Step

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Focuses on commercial real estate investment, providing a strong foundation for those seeking a lucrative career or knowledge acquisition

Instructor has substantial experience and success in commercial real estate transactions, bringing valuable insights to the course

Covers a wide range of topics, from property types to financial analysis, offering a comprehensive overview of commercial real estate investing

Designed to benefit individuals seeking a high-paying career in commercial real estate investing or those interested in investing as passive limited partners

Utilizes practical examples and case studies to reinforce learning and demonstrate real-world applications

May require learners to have some background knowledge in finance or real estate to fully grasp all concepts

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 Commercial Real Estate Investing 101 with these activities:

Review: The Intelligent Investor by Benjamin Graham

Show steps

Reviewing 'The Intelligent Investor' will provide you with a foundational understanding of value investing principles, which are essential for success in commercial real estate investing.

View The Intelligent Investor Third Edition,... on Amazon

Show steps

Read 'The Intelligent Investor' by Benjamin Graham and Jason Zweig
Take notes on the key concepts of value investing
Apply the principles of value investing to your own investment analysis

Walkthrough of Commercial Real Estate Financial Models

Show steps

By following guided tutorials on commercial real estate financial models, you can solidify your understanding of the financial aspects of commercial real estate investing.

Show steps

Find online tutorials or courses on commercial real estate financial modeling
Follow the tutorials step-by-step, building your own financial models
Analyze real-world commercial real estate deals using the financial models you've built

Discussion Group on Commercial Real Estate Investment Strategies

Show steps

Engaging in discussions with peers about different investment strategies will help you expand your knowledge and gain new perspectives on commercial real estate investing.

Browse courses on Real Estate Investment Strategies

Show steps

Join an online discussion group or forum focused on commercial real estate investing
Participate in discussions, sharing your insights and learning from others
Present your own investment ideas to the group for feedback and analysis

Show all three activities

Career center

Learners who complete Commercial Real Estate Investing 101 will develop knowledge and skills that may be useful to these careers:

Commercial Real Estate Analyst

Commercial real estate analysts evaluate and assess the financial viability of commercial properties. They use their knowledge of the market, property types, and financial analysis to make recommendations to investors and developers. This course provides a strong foundation for aspiring commercial real estate analysts by teaching them the key metrics and techniques used in the industry. With a deep understanding of commercial real estate investing, individuals can excel in this role and contribute to informed decision-making.

See salaries and explore the career path for Commercial Real Estate Analyst

Commercial Real Estate Agent

Commercial real estate agents facilitate the purchase, sale, or leasing of commercial properties such as office buildings, retail storefronts, and industrial warehouses. This course can be highly beneficial for aspiring commercial real estate agents as it provides a comprehensive overview of the industry, including property types, lease structures, and financing options. By gaining a solid understanding of commercial real estate investing, individuals can position themselves for success in this competitive field.

See salaries and explore the career path for Commercial Real Estate Agent

Commercial Real Estate Investment Manager

Commercial real estate investment managers oversee the investment of funds into commercial properties. They conduct due diligence, analyze market trends, and make investment decisions to maximize returns for clients. This course provides a solid foundation for individuals seeking to enter this field by teaching them the principles of commercial real estate investing, including property valuation, financial analysis, and risk management. With a deep understanding of the industry, aspiring investment managers can make informed investment decisions and drive success for their clients.

See salaries and explore the career path for Commercial Real Estate Investment Manager

Commercial Real Estate Developer

Commercial real estate developers acquire, develop, and manage commercial properties. They oversee the entire development process, from site selection and planning to construction and leasing. This course provides valuable insights into the complexities of commercial real estate investing, including property evaluation, financing, and market analysis. By gaining a comprehensive understanding of these aspects, aspiring developers can increase their chances of success in this highly competitive field.

See salaries and explore the career path for Commercial Real Estate Developer

Commercial Real Estate Lender

Commercial real estate lenders provide financing for the acquisition, development, and refinancing of commercial properties. They assess the creditworthiness of borrowers and determine the terms of the loan. This course can be beneficial for aspiring commercial real estate lenders as it provides insights into the underwriting process, loan structuring, and risk management. By gaining a comprehensive understanding of commercial real estate investing, individuals can make informed lending decisions and contribute to the success of their clients.

See salaries and explore the career path for Commercial Real Estate Lender

Real Estate Attorney

Real estate attorneys specialize in legal matters related to real estate transactions, including commercial property purchases, sales, and leases. This course can provide a valuable foundation for aspiring real estate attorneys by introducing them to the legal framework surrounding commercial real estate investing. By gaining a solid understanding of the legal aspects of the industry, individuals can effectively navigate complex transactions and protect the interests of their clients.

See salaries and explore the career path for Real Estate Attorney

Property Manager

Property managers oversee the day-to-day operations of commercial properties, including tenant relations, rent collection, and maintenance. This course can provide valuable insights for aspiring property managers by teaching them the principles of commercial real estate management, including budgeting, lease administration, and tenant communication. With a deep understanding of the industry, individuals can effectively manage properties and create value for their clients.

See salaries and explore the career path for Property Manager

Real Estate Appraiser

Real estate appraisers determine the value of commercial properties for various purposes, such as financing, taxation, and investment analysis. This course can provide a solid foundation for aspiring real estate appraisers by introducing them to the principles of commercial real estate valuation. By gaining a deep understanding of the industry, individuals can accurately assess property values and contribute to informed decision-making.

See salaries and explore the career path for Real Estate Appraiser

Real Estate Developer

Real estate developers acquire, develop, and manage real estate properties. This course may provide some helpful insights for aspiring real estate developers interested in commercial properties. By gaining a basic understanding of commercial real estate investing, individuals can better evaluate and select development opportunities and create successful projects.

See salaries and explore the career path for Real Estate Developer

Real Estate Consultant

Real estate consultants provide advisory services to clients on a wide range of real estate matters, including investment analysis, development strategies, and market research. This course can be beneficial for aspiring real estate consultants as it provides insights into the industry, including property evaluation, financial analysis, and market trends. By gaining a comprehensive understanding of the field, individuals can effectively advise clients and help them make informed real estate decisions.

See salaries and explore the career path for Real Estate Consultant

Financial Analyst

Financial analysts evaluate the financial performance and prospects of companies and industries. This course may provide some useful insights for aspiring financial analysts interested in the real estate sector. By gaining a basic understanding of commercial real estate investing, individuals can better analyze and value real estate companies and make informed investment recommendations.

See salaries and explore the career path for Financial Analyst

Private Equity Investor

Private equity investors invest in private companies, typically with the goal of generating capital gains through the sale of the investment. This course may provide some useful knowledge for aspiring private equity investors interested in the real estate sector. By gaining an understanding of commercial real estate investing, individuals can better evaluate and select real estate investments and contribute to the success of their funds.

See salaries and explore the career path for Private Equity Investor

Venture Capitalist

Venture capitalists invest in early-stage companies with high growth potential. This course may provide some foundational knowledge for aspiring venture capitalists interested in the real estate technology sector. By gaining a basic understanding of commercial real estate investing, individuals can better evaluate and select real estate-related startups and contribute to the growth of the industry.

See salaries and explore the career path for Venture Capitalist

Portfolio Manager

Portfolio managers oversee the investment portfolios of individuals and institutions. This course may provide some helpful insights for aspiring portfolio managers interested in incorporating real estate into their portfolios. By gaining a basic understanding of commercial real estate investing, individuals can better evaluate and select real estate investments and construct diversified portfolios.

See salaries and explore the career path for Portfolio Manager

Investment Banker

Investment bankers provide financial advisory services to companies and governments, including mergers and acquisitions, capital raising, and debt restructuring. This course may provide some foundational knowledge for aspiring investment bankers interested in the real estate sector. By gaining an understanding of commercial real estate investing, individuals can better evaluate real estate-related transactions and provide informed advice to clients.

See salaries and explore the career path for Investment Banker