Pre-investing: Before Investing in Real Estate

Course details

New to real estate investing? Not sure where to start? There are over a dozen different ways to invest in real estate, from fix and flips to rentals, wholesaling, and lease options. But every good investment starts with preparation. In this course, real estate investor and consultant Symon He explains everything you need to know before you make your first investment. Learn how to develop an investment strategy, use comparable sales method to value property, and understand how a real estate market's different phases may impact you. With these tips, you can build the foundational knowledge you need to become an informed and profitable real estate investor.

Note: This course uses data and example properties from the United States, but the concepts taught and tools provided are just as useful for any market.

Learning objectives
Determining if real estate investment is right for you
Choosing a market and a property
Using financing
Strategies for first-time investors
Real estate market cycles
Valuing a property
Analyzing your market
How leverage impacts investments
Real estate investment case studies

Concepts

0. Introduction

01 - Start here

1. Case Study - Joe's First Investment

02 - Why invest in real estate
03 - Meet Joe
04 - Which market will Joe choose to invest in
05 - Which property will Joe choose to buy
06 - How much financing will Joe use
07 - Quick peek at Joe's investment financial model

2. The Many Ways to Invest in Real Estate

08 - There is more than one way to invest in real estate
09 - Introduction to real estate asset types
10 - Introduction to investment strategies
11 - Strategies for first time investors

3. Real Estate Market Cycles

12 - Overview of real estate market cycles
13 - The recovery phase
14 - The expansion phase
15 - The hypersupply phase
16 - The recession phase
17 - The next bust

4. How to Value a Property

18 - To buy profitably, you must value accurately
19 - The cost approach to valuation
20 - The comparable sales approach to valuation
21 - The income approach to valuation

5. Understanding Your Market

22 - Where to get the data
23 - Regional analysis
24 - Neighborhood analysis
25 - Competitive analysis

6. What Makes a Good Investment

26 - What makes a good investment
27 - Discounted cash flow and the net present value (NPV)
28 - Discount rate
29 - NPV demonstration
30 - Measuring efficiency - Internal rate of return (IRR)
31 - IRR demonstration
32 - Measuring magnitude - Cash multiple
33 - How to use the measures
34 - NPV vs. IRR
35 - The terminal value of an indefinitely held rental
36 - Investment yields and capitalization rates
37 - Measures of return summary

7. Understanding Leverage

38 - Components of debt
39 - Interest-only vs. amortized loans
40 - The amortization calculator
41 - How leverage impacts investment returns
42 - Debt leverage summary

8. Case Study - Rental Income Property Analysis

43 - Case study #2 overview
44 - Market research, part 1
45 - Market research, part 2
46 - Detailed look at the back of the envelope (BOE) analysis

Conclusion

47 - Congratulations