Description

Real Estate Investments are unique in that they generate both rental income and capital appreciation, making cash flow modelling an essential tool for Real Estate Investors, Lenders, and Analysts.

On this course, we will use case studies to enhance the delegates understanding of Real Estate financial appraisals, and help them fully appreciate the theory behind the numbers. We will cover topics such as discounting, compounding, forecasting rental income and expenses, calculating net operating income (NOI), factoring in capital expenditures, modelling debt service, and determining the internal rate of return (IRR).

This course will provide you with a solid foundation for understanding and analysing real estate cash flows.

On this course you will...

Study the financial concepts of compounding, discounting and in-perpetuity

Consider the importance of the timing and uncertainty of both fixed and growing income streams

Contrast different property yield metrics

Build-up risk premiums for discount rates, discuss the importance of liquidity, transparency and volatility

Compare and contrast time and money-weighted measures of return

Learn about valuation principles

Contrast value and worth

Discuss the importance and sourcing of inputs and outputs

Who will benefit from this course?

Professional Real Estate Transaction Managers

Asset Managers

Portfolio Managers

Recent graduates with exposure to real estate financial modelling

New employees with exposure to real estate financial modelling

People working in Argus, Anaplan or any commercial real estate software and would like to understand financial modelling key principles.

Course Outline:

Morning

Real Estate Financial Mathematics

Time Value of Money

Net Present Value (NPV)

Internal Rate of Return (IRR)

Growth

What Discount Rate?

Certainty of a cash flow

Liquidity

Price, Value and Worth

Comparing Price, Value and Worth

Conventional Valuation Methods

Term and Reversion, Layer Method

Property Yields and Capitalisation Method

Exit calculations across Europe

Afternoon

Discounted Cash Flow Models

Investment Appraisal Models

Cash flow inputs: Rents, Yields, Growth Rates, Target Returns

Cash-on-Cash and Equity Multiple

Discount Rates & Exit Cap Rate

Operating Assumptions

Adding borrowing and analysing geared returns

Model Interpretation and Analysis

Sensitivity analysis and scenario analysis

Growth and inflation

Performance measures

Contemporary issues for analysis (such as the rise in interest rates)

Quizzes | Q&A

Included in the Course

A Bayfield Training Certificate & 7.5 CPD Hours

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

For more information about the Understanding Key Principles of Real Estate Financial Modelling such as course delivery methods, pricing and dates, please contact Sam on the Bayfield Training Sales team:

E - s.musgrave@bayfieldtraining.com

T - 01223 517851

W - www.bayfieldtraining.com

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Understanding Key Principles of Real Estate Modelling (Advanced Theoretical Course)

By Bayfield Training

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