Helping you acquire the tools, techniques, and skills to confidently and accurately analyze the risks and
opportunities in any real estate venture.
The ability to create and understand valuation models is one of the most valued skills in business and finance today and Valuation is an essential method for all real estate decisions.
YOU WILL LEARN HOW TO
This course covers how to use the automated systems and how to build an Excel real estate financial model, step-by-step, from inputs through operating income right the way through to using the model to determine risks. Actual examples of good and bad real estate financial models for office buildings, industrial buildings, residential developments, hotels, and retail will supplement the modeling techniques that will be taught in the course.
Through a series of interactive sessions and cases studies, this 5-day intensive workshop provides an essential insight into the role of valuations in property investment and the importance of pricing to market. Every section is followed by a direct application related to the markets and current issues.
Participants will, during the course, undertake an appraisal based on their own perceptions of risk and market changes and develop a Full Excel model of real estate investment decision analysis of a residential compound.
IMPORTANT COURSE INFORMATION
Upon completing the course, participants will be awarded Strategic Axis Professional Certificate endorsed by IABFM – International Academy of Business and Financial Management.
This Program is worth 35 NASBA CPE credits.
COURSE OUTLINE
Mechanics of financial models
What makes real estate models unique?
Real estate construction and investment
Construction of the model
Leases in the model
Mechanics of financial models
What makes real estate models unique?
Real estate construction and investment
Construction of the model
Leases in the model
Module 2: Calculations
Estimating operating expenses
Estimating real estate taxes
Estimating capital expenses
Calculating net operating income
Financing real estate investment
Valuation issues in real estate
Building and using a real estate model
Module 3: Interactive Financial Model
Calculate Cap Rate and Net Operating Income (NOI)
Build an interactive financial model to assess a project’s financial viability
Understand how project financing (both debt and equity) flow in and out depending on stage of development
Design and structure of an Excel-based project finance model
Build in “triggers” and sensitivities to understand a project’s exposure to key drivers
Build in ownership and financial structures (debt & equity)
Calculate Internal Rate of Return (IRR), Return on Sales, Return on Cost
Produce a one-page investment summary memo
Includes blank and completed financial models to download
Module 4: Cash Flow Modelling
Model cash flows for a real estate development project
Advanced Cash Flow Waterfall Modeling
General Partners (GPs)
Limited Partners (LPs)
Disproportionate Returns
Internal Rate of Return (IRR)
