Real Estate Financial Modeling | Terms & Definitions

Описание: Understanding real estate development requires mastering important concepts. In this video, we carefully explain crucial terms to ensure you have a solid grasp of the fundamentals, including:

Land Loan: Financing for undeveloped land.
Cap Rate: A property's valuation metric (NOI ÷ property value).
Floor Space Ratio: A measure for determining building density.
Loan to Cost: Borrowing as a percentage of development costs.
Loan to Value: How much you can borrow based on property value.
Gross Site Area & Net Site Area: Total land size vs. buildable land size.
Joint Ventures: General and limited partners' roles in development deals.
Gross Building Area vs. Gross Leasable Area: Differences in measuring spaces.
Net Operating Income: Income after deducting expenses from gross rental revenue.
Amortization Period vs. Term: The repayment timeline versus interest rate agreement duration.

By the end of this comprehensive walkthrough, you will understand how these terms shape real estate development deals and projects.

Chapters:
00:00 - Introduction
00:12 - Loan to Value [LTV]
00:32 - Loan to Cost [LTC]
00:58 - Net Operating Income [NOI]
01:27 - Cap Rate
02:19 - Amortization Period
02:37 - Term
02:59 - General vs. Limited Partner
03:45 - Land Loan
04:06 - Floor Space Ratio [FSR]
04:31 - Gross Building Area [GBA]
04:46 - Gross Leasable Area [GLA]
05:05 - Gross Site Area & Deductions
05:41 - Net Site Area
05:54 - Max GBA
06:18 - Construction GBA
06:32 - Salable Area
06:46 - Joint Venture Structure

You can learn more about this topic here: https://corporatefinanceinstitute.com...

If you're ready to take these concepts to the next level, watch the overview of our    • Real Estate Financial Modeling [REFM] Cour...  . Learn how to apply these terms in financial models to evaluate and value real estate investments like a pro!

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