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Investing in international real estate has gained credibility over the past decade. However, regardless of where real estate is located, investment decisions are ultimately based on value. And value cannot be accurately estimated until both revenues and expenses have been forecast. It is now more important than ever for professionals involved in making global investment decisions to understand how cash flows are projected and how real estate is valued.
Registration: Registration will commence at 08:00 and begin at 08:30 with refreshments to be served at appropriate times. The day will conclude at 14:30 after which lunch will be served.
Workshop Outline:
Income Approach The two most common methods of converting income into value are by direct capitalisation or discounting cash flows. In the direct capitalisation technique, a cap rate is derived from the market. In the case of the discounted cash flow technique, expected future income streams and the reversion are discounted to an estimate of present value at an appropriate discount rate. Both of these techniques can be abused, resulting in incorrect results and costly investment decisions.
In this intense, one-day condensed course, you will learn which valuation technique to use and when. You will also learn about different types of leases, how to forecast revenues and expenses, the impact of inflation, the Argus computer model, the HP 12C financial calculator, estimating appropriate rates of return, and sensitivity analyses.
Other Valuation Considerations:
- Highest and best use
- Availability of financing
The Outlook For Real Estate Investment Around The World:
- Recession in the United States
- Inflation in Australia
- A Mixed Bag in Europe
- Boom in the Middle East
Developers vs. Lenders:
- Impact of financing on investment returns
- Forming joint ventures
- Cross-border investing
- Presenting your findings: different report formats
- Full narrative reports
- Summary reports
- Restricted reports
Meet Your Expert Workshop Leader:
 Howard Gelbtuch, Mai, Cre, Frics, Principal, Greenwich Realty Advisors Incorporated, USA
Howard Gelbtuch has more than 34 years of real estate experience, with an emphasis on global evaluation issues. Prior to starting Greenwich Realty Advisors, Incorporated 13 years ago, he was a Senior Director of Jones Lang Wootton (now Jones Lang LaSalle), where he supervised all of the firm’s valuation activities in North and South America. Before that, he started and ran the real estate valuation practice at what was then known as Coopers & Lybrand (now PricewaterhouseCoopers), and was Director of Research for Morgan Stanley Realty. He was also a Senior Vice President at Landauer Associates, where he worked primarily on the valuation of large retail and office portfolios (Corporate Property Investors, Rouse, Hines, and Olympia & York to name a few), and spent six years with Integrated Resources where he founded and supervised their real estate valuation department, acquiring aboutt $1 billion of real estate annually. He has worked or taught real estate courses in Asia, Europe, North and South America.
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