My Lutheran friends tell me that their communion contains the Real Presence of Christ. I did not think that any non Catholic clergy could consecrate bread, wine, or a host so that it changes into the actual Real Presence of our Lord. Is my thinking correct?
You are correct in that only a validly ordained priest can consecrate the Eucharist. While Eastern Orthodox and certain schismatic groups have valid ordinations and therefore valid Eucharists, the Lutheran faith community does not have valid ordinations and therefore does not have a valid Eucharist.
Catechism of the Catholic Church:
1411 Only validly ordained priests can preside at the Eucharist and consecrate the bread and the wine so that they become the Body and Blood of the Lord.