Finance is possibly the most critical aspect of a development project and occurs well before the start of construction. Delivered in partnership with the Real Estate Development Institute (REDI), Canada’s leader in real estate development education, this course will examine the fundamental building blocks to present a project for financing including the development of revenue and budget projections, comparative and competitive analysis to ensure the validity of the projected pro-forma, and the stressing of those assumptions to potential changes in market conditions through to the completion of the development. Facilitated by industry experts, their local perspective on real estate development will provide learners with a realistic and practical understanding of the complexities of real estate development in Calgary and beyond.
Program delivery: In-Person
Commitment: 18 hours
Grant funding: This program could be eligible for grant funding that can cover up to 2/3 of the program costs. An Executive Education team member can help you bundle courses to meet the minimum hours needed for eligibility. For more information: firstname.lastname@example.org.
Participants come from a variety of fields including real estate development, banking, government, architecture, planning and engineering. The program is aimed for those who aspire to work in field of real estate development, expand understanding of the development process, and benefit from local expertise, perspectives and gain hands-on experience.
Participants who attend this course will learn to:
- Identify the various types of real estate assets that can be developed and define the municipal approval process required to commence development
- Identify key real estate risk factors, including project-specific and macroeconomic variables, how they impact the viability of the project, and how to mitigate these risks
- Compare and explain the various equity capital structures used to finance real estate projects and how they influence the securing of project debt
- Develop a project pro-forma and cost estimate used in the financing decision, including discounted cash flow analysis, IRR modelling, and the time value of money assumptions
- List the basic features of mortgage agreements, including first and second mortgages, as well as other types of private financing transactions and the legal framework supporting these agreements
- Identify the familiar sources and providers of commercial real estate debt across the risk spectrum
- Assess potential real estate projects with a focus on their viability in securing project financing
Aaron Forbes attended the University of Calgary majoring in Economics and became a CFA Charter holder in 2013. He is a licensed member of the Real Estate Council of Alberta and has completed the Mortgage Associates Program. In 2007 he joined MCAP’s Development Finance Group in Calgary as a Junior Analyst and through subsequent promotions is currently a Senior Director with the firm. In his current role, Aaron is responsible for the origination, negotiating, and underwriting of construction loan facilities for apartment condominium, purpose built rental, land servicing, commercial, and mixed-use projects. To date Aaron has been involved in the structuring of more than $2 billion of real estate transactions throughout Western Canada including first and second mortgages and has completed syndications with most major Canadian Banks, Alberta based lending institutions, pension funds, and life insurance companies. In 2012, Aaron spent two months volunteering in Phnom Penh, Cambodia with the Sovann Phoum Organization, a non-profit micro credit lender. He currently sits on the Board of Directors for KV Mortgage Fund Inc., a private Edmonton based lender, as an independent member and serves as a member of the Lending Review Committee.