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x <br />ED202-Real Estate Finance <br />Real estate development is the focus of ED202, the third course in the EDFP Certification Program TM. This course <br />offers a step-by-step look at the real estate development process from the perspective of lenders, developers and <br />investors. Participants analyze economic development real estate projects—retail, office, mixed-use—using the <br />rates of return required by lenders, developers and investors, and determine the appropriate amount of public <br />sector financing needed to make projects feasible. Public sector financing tools and techniques, including tax <br />credits, designed to attract, leverage and complement private financing, are utilized to maximize equity while <br />minimizing the amount of public investment. Specific topics include: <br />• Real Estate Financing Process <br />o Calculating project costs <br />o Projecting the developer's pro forma <br />o Determining debt capacity <br />o Measuring equity attracted <br />o Quantifying the financing gap <br />o Closing the gap <br />• Return on Investment <br />o Cash -on -cash rate of return <br />o After-tax cash flow rate <br />o Present value analysis <br />o Internal rate of return <br />• Appraisals <br />o The capitalization rate <br />o Three approaches to value <br />o Reconciling value <br />• Impact of Taxes on Real Estate Ownership <br />o Depreciation <br />o Leverage <br />o Tax credits <br />o Taxable gains and losses <br />x <br />