Real Estate Financial Modelling School

Real Estate Analyst

Real Estate Investor

Real Estate Modelling Masterclass

Implement cash flows in excel throughout the whole week.

In the first two days you will learn how to develop rent functions and net operating income. We will show you how to value and appraise property investments and analyse the results.

On the third and fourth day you will learn how to model and analyse development projects using both residuals and cash flow methods. It will show you how to interrogate and compare alternative return metrics such as profit-equity multiples, profit and cost, net present value, worth and internal rate of return. Additionally you will cover how to model cash flow from different sector office, retail and leisure.

Finally on the fifth day debt structures will be covered as well as joint ventures and partnership financing. You will also learn how to implement the full spectrum of the risk analysis from sensitivity to Monte Carlo.

Real Estate professionals at any level with exposure to real estate financial models on a frequent basis

Junior or new Real Estate Analysts who would like to start building their own real estate models quickly, rather than relying solely on coaching from existing team members

Mid-level to senior Real Estate Analysts

Real Estate Managers who would like to gain an understanding of the dynamics of debt and financial return fluctuations in more detail

Property industry modellers who would like to be fully proficient in building complex financial models

Term & Reversion and Layer Method Valuation (Intro to Excel)

Equivalent Yield (Solver, Scenario and Goal Seek functions)

Single-Let Discounted Cash Flow

Cash Flow inputs (Rents, Yields, Growth Rates, Target Returns)

Analysis and use of date series

Internal Rate of Return (IRR) and Net Present Value (NPV)

Comparing Value, Price and Worth

Adding borrowing and analysing geared returns

Introducing Rent Reviews and other ‘events’ into cash flows

The ‘Rent Function’ concept and Logic functions (IF,OR,AND)

Sensitivity analysis

The ‘Rent Function’ and Multi-let cash flows

The ‘date problem’ and assumptions in property asset cash flows

Reducing the rent function, intermediate calculations and modelling theory

Modelling lease expiries, break clauses, voids, and upward only covenants

Incorporating time-varying rental growth rates

Analysing multi-let cash flows to see if the leases are sufficiently diversified

Further IRR analysis (XIRR, MIRR)

Modelling international variations in real estate income streams i.e. Includes indexation patterns, rent caps, discounts / premiums to indexation, rent free periods, as well as how to deal with costs during vacancy

Modelling sector variations in real estate income streams i.e. Office versus industrial, retail & leisure

Further senior debt covenants

Advance Rent Function techniques to manage feature rich lease structures

Introduction to development appraisals

Residual models, site and profit calculations

Development cash flows versus Investment cash flows

Introduction to straight line versus S-curve costing

Phased asset sales in development appraisals

Discounting development cash flows

Complimentary return metrics for development appraisals

Introduction to development finance

Mezzanine debt modelling

Joint Venture structures between developers and lender/equity partners

Promote and profit share structure calculations

Advance project cash flows with mezzanine debts

Key Real Estate and investment risks, risk adjustment of exit yields

Sensitivity and Scenario Analysis

Monte Carlo Analysis

CPD Accredited Certificate & LinkedIn Proficiency Badge

Course Manual - In-Person Course attendees will receive a Physical Copy, Virtual Course attendees will receive a Virtual Copy and have the option to purchase a Hard Copy at an additional fee

Course Files

Online Learning Platform access - Further Learning Resources (Reading, Files and Videos)

Post Course Support - Two Months of Questions & Answers, and One year of support is available for an additional fee