Certified International Property Specialist

n the search of expanding our knowledge on the global real estate market. We started taking certifications on international property transactions. The last course Global Real Estate: Transaction Tools was probably the most important chapeter on the course. While it provides the formula to present an viable investment to people who are interested in putting their money into real estate. Here are the top 10 takeaways of the course. 

1. Global Real Estate: Transaction Tools cover various aspects of real estate investment, including leveraging, exchange rates, investor objectives, and property valuation.

2. Leverage refers to the use of borrowed funds to finance an investment.

3. Loan-to-Value (LTV) is a ratio that compares the amount of money borrowed to the total value of a property.

4. Managed Float is a floating exchange rate plan in which fluctuation within a set range is allowed, but the government may intervene to influence the exchange rate by buying or selling currency.

5. Net Present Value (NPV) is the difference between the cost of a real estate investment and the discounted present value of anticipated future fiscal benefits of that investment.

6. Net Operating Income (NOI) is the income from an investment after subtracting vacancy losses and operating expenses.

7. Non-Quantitative Motivations are investor objectives based on personal preferences.

8. Opportunity Cost is the rate of return that could be earned on an alternative investment, representing the rate of return lost due to lack of investment.

9. Present Value is the value of a future sum, discounted to reflect the time value of money.

10. Sales Approach is a method for valuing property by comparing it to prices for similar properties. The 7/10 Rule is a rule of thumb for length of time and interest rate necessary for an investment to double. Soft Currency refers to a foreign currency generally not viewed or held by investors as a store of capital.

Global Real Estate: Transaction Tools provides a comprehensive overview of various aspects of real estate investment. It covers different terms and concepts that are essential to understand for anyone who wants to invest in real estate.

The first concept covered t is leverage, which refers to the use of borrowed funds to finance an investment. The text then explains the loan-to-value (LTV) ratio, which compares the amount of money borrowed to the total value of a property.

Another important concept covered is the managed float, which is a floating exchange rate plan in which fluctuation within a set range is allowed, but the government may intervene to influence the exchange rate by buying or selling currency. It also explains net present value (NPV), which is the difference between the cost of a real estate investment and the discounted present value of anticipated future fiscal benefits of that investment.

Furthermore, It explains and covers net operating income (NOI), which is the income from an investment after subtracting vacancy losses and operating expenses. The text also explains non-quantitative motivations, which are investor objectives based on personal preferences.

Next explained is the opportunity cost, which is the rate of return that could be earned on an alternative investment. It represents the rate of return lost due to a lack of investment. Present value is another concept explained, which refers to the value of a future sum, discounted to reflect the time value of money.

Additionally, it invites the agent to use the sales approach, which is a method for valuing property by comparing it to prices for similar properties. The 7/10 Rule, a rule of thumb for length of time and interest rate necessary for an investment to double.

Lastly, the course explains soft currency, which refers to a foreign currency generally not viewed or held by investors as a store of capital. And also defines terms such as non-resident alien, resident alien, risk, and physical presence for tax purposes.

Overall, Global Real Estate: Transaction Tools is a comprehensive guide that covers various essential concepts related to real estate investment. Understanding these terms and concepts can help investors make informed decisions when investing in real estate.

We encourage everybody who is interested in investing in real estate to reach out to us for a more detail conversation.