Financial Fundamentals of Asset Management is the third and final courses for the CHAM Asset Management Specialist (AMS) designation.
This course is an introduction to real estate finance, exploring analytical concepts that are critical for the professional asset manager. It covers basic tools for analyzing properties’ financial health, for determining their market value, and for developing multi-year financial projections.
You will get to work on three case studies to help you understand how to apply these financial concepts to real situations:
- Maximizing cash flow - Above the line and below the line expenses, cash flow impacts, improving cash flow, and understanding the asset manager’s role in maximizing cash flow.
- Managing Debt - Loan calculations, amortization, interest compounding, refinancing for capital, debt calculation.
- Audit Analysis - What you can learn from an audit and how to track debt.
- Taxes – Tax benefits of real estate ownership.
- Waterfall - How the waterfall of cash flow affects affordable and LIHTC properties.
- Property Valuation - Financial elements that affect property valuation and helpful formulas to help determine valuations
- Trending – Key elements in financial trend analysis
- Asset managers and analysts, especially people new to the field
- Developers, property managers, accounting staff
- Staff at nonprofit and for-profit owners, lenders, syndicators, investors, government, HFAs, PHAs
- Individuals who oversee asset management, such as executive directors, CEOs and CFOs
Instructors: Laurie Gould, Viva Consulting, LLC
Duration: This on-demand class is estimated to take 11 hours including exercises and exam.
Learning Objectives:Understand and enhance the financial value of affordable housing.
- Analyze the main drivers of property cash flow: cash flow, tax benefits, and long-term value.
- Evaluate the impact of debt refinance and explain how interest compounding, refinancing for capital, debt calculation, and loan amortization are key concepts to understand for debt management.
- Recognize the importance of conducting an accurate audit.
- The ways in which accurate audits can assist with debt mitigation.
- Understand how depreciation, tax credits, and expenses are determined.
- Explain the difference between capitalized costs and expenses.
- Conceptualize how cash flows in a waterfall and how waterfall cash flow affects affordable and LIHTC properties.
- Estimate a property's value using economic valuation and the cap rate method.
- How to prepare multi-year proformas and the importance of calculating accurate proformas.