This session focuses on how real estate value is created through income performance, covering NOI, cap rates, rent rolls, and unit mix, building a pro forma from historical T-12 financials, making disciplined income and expense projections, and translating day-to-day operations into overall investment value.

The emphasis here is on evaluating an investment across its full lifecycle, introducing DCF fundamentals, projecting future cash flows and exit assumptions, understanding IRR, Cash-on-Cash, Equity Multiple, NPV, and PV, and using debt strategically through agency loans, bridge financing, and refinances while managing risk through LTV and DSCR.

This hands-on session applies underwriting concepts to a real multifamily scenario, analyzing rent rolls and operating expenses, identifying value-add opportunities, sizing debt, calculating return metrics, running sensitivity analysis, and assessing the risk and reward profile of a stabilized 200-unit property in a Midwest market.

Attention shifts to the added complexity of commercial real estate, modeling an office or industrial lease-up, understanding commercial lease structures and CAM, accounting for tenant improvements, leasing commissions, and downtime, navigating financing challenges unique to commercial assets, and stress-testing assumptions and exit scenarios.

The final session explores how deals are structured between sponsors and investors, comparing common and preferred equity, pari passu arrangements, preferred returns, waterfall and promote models, what investors look for in partnerships, and how refinance and sale scenarios affect returns under different equity structures.