Teaching a Class in Private Equity Real Estate

[Leonardo Severino]

Hi Guys,

I was invited to be a guest lecturer for a Master of Finance program to teach about private equity real estate. I only have about 10 hours with the students, so I wanted to hear your thoughts on what you think would be the most fundamental things to teach in a Private Equity Real Estate class. 

Here are a few topics I was thinking about including in the class:

- The Real Estate Investment lingo (NOI, Cap rate, CFO, IRR, ROI, ROA, ROE, CoC, etc)

- examples of how to analyze real estate deals (BOE analysis)

- the triad of real estate returns (debt pay down, cash flow and appreciation)

- the real estate market ecosystem (investors, capital markets, asset market, space market, local/national economy/development industry)

- Use of leverage - both sides of the sword.

- effect of market cycles in real estate returns

- syndication of real estate deals (the myth of always having to foot the equity bill)

these are just a few topics that I thought should be mentioned. So I would love to hear your thoughts on what else should be part of the curriculum. Thank you in advance!