Asset Management is the term used for the decision-making process involved in maximizing returns on real property investments. This process includes such decisions as whether or not to renew a lease for a tenant, purchase or lease more assets, improve, sell or rent one’s current assets, etc. The asset manager must be aware of market trends and indicators and must be able to accurately predict the cash inflows and outflows of his or her own holdings.

This module provides an introduction to the basics of asset management. It introduces the student to the key ideas and concepts of management as well as the techniques a manager will use to evaluate the market and evaluate the financial impact of alternatives in order to make properly informed decisions. The student will learn how to handle distressed properties and how to successfully market a revenue-increasing strategy.

The module ends with case studies and real world practice, which will aid the student in becoming confident and familiar with the various aspects of asset management.

Learning Objectives

Upon completion of this module, the student will:

• Be familiar with the basic concepts of asset management
• Be familiar with the common decisions faced by an asset manager
• Know what a Real Estate Investment Trust (REIT) is and the benefits of investing in one
• Understand the risks and rewards associated with real estate investment
• Know how to conduct a useful market study
• Understand how interest rates affect the real estate market
• Be able to calculate the depreciation of residential and commercial real property held for business or investment
• Be familiar with the financial ratio methods of valuation, including Price to Earnings Ratios and Cap Rates
• Know how to create a pro forma projection for a real estate investment alternative
• Know the basics of a Discounted Cash Flow (DCF) analysis
• Know how to use the Net Present Value (NPV) and Internal Rate of Return (IRR) to compare the values of several alternatives
• Be familiar with distressed properties and how to handle them
• Know the important factors to consider when refinancing
• Be able to apply these concepts in the real world

Assessments

• Quizzes – There is a quiz at the end of each lesson to test comprehension of the subject matter.
• Final Exam – Passing Grade 70%. You can take the final three times.

Approved Course Number:

03-00-059-5968