Real Estate Financial Modelling School

Real Estate Financial Modelling School is an intensive week meticulously designed to teach the best practices to create flexible and robust cash flows in Excel.

This school combines three of our courses:

All of the courses are interlinked to give you a full understanding of the subject using Excel.
 

On this course you will…

  • 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 analyses 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. You will also learn how to model cash flow from different sector office, retail and leisure.
  • 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.

 

Who will benefit from this Real Estate Financial Modelling School?

  • 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

Note: You can also attend these courses separately. However, people attending the entire week will get a 20% discount and will receive the Real Estate Financial Modelling School certificate.
 

Course Outline


Day One


Day One

Know how to build a property asset cash flow, analyse geared, and un-geared IRRs.

  • 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


Day Two


Day Two

Know how to build a multi-let property cash flow and apply the concepts on a real case study.

  • 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)
  • Case Study


Day Three


Day Three

Real Estate Investor I

  • 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


Day Four


Day Four

Real Estate Investor II

  • 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


Day Five


Day Five

Real Estate Modelling Masterclass

  • 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



 

Post-Course Support

We complement all our financial modelling courses with two months’ learning support, to make sure you will fully benefit from our training.

How does it work?
You can contact us at any time and one of our experts will come back to you within two working days. The expert’s time is limited to 10 minutes per inquiry on questions related to the course material only.
 

Need More?

One Year Learning Support

We also offer an exclusive learning support for a whole year to assist you whenever you need us. To use this offer contact Kendal Bahadirgil before or after your financial modelling course and request “one year learning support” for the additional fee of only £500 + VAT.