Description
Distressed Debt and Special Situations (for Real Estate)
There are many more structures in real estate than fee simple ownership and fixed-rate mortgages. Some of these structures are a variation on debt or equity and sometimes they’re a little bit of both.
Many investors may rarely encounter these, and when they do, they need some help understanding how they work and how to value them. This class covers a wide range of unusual structures and covers the specific issues that are relevant to an investor who is trying to value an investment.
Most important of all, all of these structures are explored with financial models, and approaches to valuing all of them are demonstrated.
This class is targeted for:
- Investors or acquisition professionals
- Lenders who manage portfolios of non-performing loans
- Developers who are exploring partnerships or joint ventures with land-owners
- Anyone in a reporting role that needs to manipulate large datasets.
We will cover the following product types:
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Buying the company vs. buying the real estate
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Tenant in Common Structures
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Broken Condos
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Ground Leases
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Mezzanine Loans
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Non-Performing Loans
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REO (Real Estate Owned)
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Minority Interests in LLCs
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Majority Interests in LLCs
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Private REIT
- Investing in rent-controlled or rent-restricted units
All attendees will receive a suite of unlocked spreadsheets in Excel for their own professional use.
Attendees taking this workshop should have a good working knowledge of Excel. In addition, attendees should bring their own laptop to this session.
Agenda
9:00 am Start (with 15-minute break mid-morning)
- Introduction to distressed debt and special situations
- A generalized framework for evaluating limited liquidity investments
- Review of unusual structures (with examples along the way) including:
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Mezzanine loans
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Non-performing loans
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REO (Real Estate Owned)
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Ground leases
-
Buying the company vs. buying the real estate
-
Tenant in common structures
-
Broken condos
- Investing in rent-controlled or rent-restricted units
- Minority Interests in LLCs vs. Majority Interests in LLCs
-
Private REIT
- Crowdfunding
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12:30 Lunch
1:30 Start (with 15-minute break mid-afternoon)
- Overview of previous crises and where this one fits in
- Focused examples of investing in REO, broken condos, and buying distressed debt
- Case studies of mezzanine investing, workouts of distressed debt, and changing construction mid-stream
5:00 End
Class Size
All open enrollment courses are restricted to no more than 20 attendees in order to maximize teacher to student interaction. Students will also receive a complete set of spreadsheets for all examples and case studies that are discussed in class.
Instructor
The class was designed and is exclusively taught by Joshua Kahr; he is the founder and principal of Kahr. Mr. Kahr is internationally recognized as an expert in real estate financial modeling using both Argus and Excel.
Since 2002, he has taught his Excel for Real Estate Analysis training class for leading institutions including commercial banks, investment banks, private real estate investment firms, REITs (Real Estate Investment Trusts), business schools, developers, and government agencies. His Advanced Excel Modeling course builds on his 18 years of teaching experience to showcase the most advanced features of the software.
Schedule, Cost, and Signing Up
We run a class in New York City approximately every six weeks. It is usually held at the NYC Seminar Conference Center at 71 West 23rd Street, Suite 901, New York, NY 10010; if that space is not available, an alternative space in midtown Manhattan will be used. The class is $495 per attendee. For group discounts for 3 or more attendees, contact us. Attendees are invited to bring their own laptop. Windows or Mac laptops (with Excel) are equally acceptable. Laptops with Excel may be rented for an additional fee of $100. Contact us to rent a laptop.
Online Option
We also offer remote attendance as an option. Sign up as you normally would, and then contact us at info@kahrrealestate.com and tell us that you’d like to attend the class as a webinar. We will provide you with login information so that you can participate remotely. You’ll be able to ask questions, watch the class, and get feedback from the instructor.
