4.4 CRE Accounting & Financial Reporting
- 9 Sections
- 36 Lessons
- 33 Quizzes
Why CRE Accounting Is Different
- Lesson 1.1: GAAP vs. Tax Basis: Which One Are You Looking At?
- Quiz 1.1: GAAP vs. Tax Basis: Which One Are You Looking At?
- Lesson 1.2: Accrual vs. Cash Basis: What Property Managers Report and What It Hides
- Quiz 1.2: Accrual vs. Cash Basis: What Property Managers Report and What It Hides
- Lesson 1.3: Why Accounting Profits ≠ Cash Flow
- Quiz 1.3: Why Accounting Profits ≠ Cash Flow
- Lesson 1.4: The Four Financial Statements Every CRE Investor Should Track
- Quiz 1.4: The Four Financial Statements Every CRE Investor Should Track
The Property Income Statement
- Lesson 2.1: The Income Waterfall: From Gross Potential Income to Net Income
- Quiz 2.1: The Income Waterfall: From Gross Potential Income to Net Income
- Lesson 2.2: Line-by-Line Operating Expense Analysis
- Quiz 2.2: Line-by-Line Operating Expense Analysis
- Lesson 2.3: The T12: How to Read a Trailing 12-Month Statement
- Quiz 2.3: The T12: How to Read a Trailing 12-Month Statement
- Lesson 2.4: Normalizing for Non-Recurring Items
- Quiz 2.4: Normalizing for Non-Recurring Items
- Lesson 2.5: Common P&L Manipulation Tactics Sellers Use
- Quiz 2.5: Common P&L Manipulation Tactics Sellers Use
The Balance Sheet for CRE Investors
- Lesson 3.1: Assets: How Real Estate Appears on the Balance Sheet
- Quiz 3.1: Assets: How Real Estate Appears on the Balance Sheet
- Lesson 3.2: Liabilities: Mortgage Accounting and Loan Covenants
- Quiz 3.2: Liabilities: Mortgage Accounting and Loan Covenants
- Lesson 3.3: Equity: Capital Accounts, Distributions, and What They Tell You
- Quiz 3.3: Equity: Capital Accounts, Distributions, and What They Tell You
- Lesson 3.4: Reading a Partnership Balance Sheet: What Your Capital Account Tells You
- Quiz 3.4: Reading a Partnership Balance Sheet: What Your Capital Account Tells You
Cash Flow Statements and Distributions
- Lesson 4.1: Operating, Investing, and Financing Cash Flow: Separating the Sources
- Quiz 4.1: Operating, Investing, and Financing Cash Flow: Separating the Sources
- Lesson 4.2: The Cash Flow Waterfall: From NOI to Distributable Cash
- Quiz 4.2: The Cash Flow Waterfall: From NOI to Distributable Cash
- Lesson 4.3: Distribution Calculations: Preferred Return, Catch-Up, and Split
- Quiz 4.3: Distribution Calculations: Preferred Return, Catch-Up, and Split
- Lesson 4.4: Cash-on-Cash Return vs. Return of Capital
- Quiz 4.4: Cash-on-Cash Return vs. Return of Capital
Partnership Accounting & K-1s
- Lesson 5.1: How Partnership Income and Loss Is Allocated
- Quiz 5.1: How Partnership Income and Loss Is Allocated
- Lesson 5.2: Reading a Schedule K-1: The Seven Boxes That Matter
- Quiz 5.2: Reading a Schedule K-1: The Seven Boxes That Matter
- Lesson 5.3: Passive Losses on the K-1 and How to Use Them
- Quiz 5.3: Passive Losses on the K-1 and How to Use Them
- Lesson 5.4: Depreciation Pass-Through: Why Your K-1 Shows a Loss When Cash Is Flowing
- Quiz 5.4: Depreciation Pass-Through: Why Your K-1 Shows a Loss When Cash Is Flowing
- Lesson 5.5: Basis Tracking: Why Your Outside Basis Matters When You Sell
- Quiz 5.5: Basis Tracking: Why Your Outside Basis Matters When You Sell
Key CRE Metrics, FFO, AFFO, and Beyond
- Lesson 6.1: Net Operating Income (NOI): The Universal Metric
- Quiz 6.1: Net Operating Income (NOI): The Universal Metric
- Lesson 6.2: Funds From Operations (FFO): The REIT Standard
- Quiz 6.2: Funds From Operations (FFO): The REIT Standard
- Lesson 6.3: Adjusted FFO (AFFO): Getting to True Cash Yield
- Quiz 6.3: Adjusted FFO (AFFO): Getting to True Cash Yield
- Lesson 6.4: Cash-on-Cash Return and Total Return: The Complete Picture
- Quiz 6.4: Cash-on-Cash Return and Total Return: The Complete Picture
The Financial Package, Reading a Deal's Books
- Lesson 7.1: What a Seller Provides and What Each Document Reveals
- Quiz 7.1: What a Seller Provides and What Each Document Reveals
- Lesson 7.2: Tax Return vs. Operating Statement: The Gap Is the Story
- Quiz 7.2: Tax Return vs. Operating Statement: The Gap Is the Story
- Lesson 7.3: Reconciling Broker Underwriting to the Actual T12
- Quiz 7.3: Reconciling Broker Underwriting to the Actual T12
- Lesson 7.4: The Due Diligence Financial Audit: 10 Things to Verify
- Quiz 7.4: The Due Diligence Financial Audit: 10 Things to Verify
- Lesson 7.5: Presenting Financials to a Lender
- Quiz 7.5: Presenting Financials to a Lender
Capstone, Audit a Seller's Financial Package
Final Exam
The financials tell you what a deal is. Read them and you stop taking a seller's word for it.
You work the property income statement, the investor balance sheet, cash flow and distributions, and partnership accounting with K-1s. Modules on FFO, AFFO, and the full financial package teach you to read a deal's books like an analyst.
Eight modules, 36 written lessons, 128 practice questions, and a graded final exam with a certificate. The capstone audits a seller's financial package. Self-paced, no expiry date. Yours to finish on your own timeline.
Catch what a seller's numbers leave out.
Educational only. This is not accounting or tax advice. Confirm your situation with a CPA.
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