Real Estate Financial Modelling Certificate
In partnership with:
Get upskilled and recognised by the greatest Real Estate Educational Institutions in the world with the Bayfield Training, University of Cambridge Real Estate Financial Modelling Certificate.
This prestigious eight-week online Real Estate course is suitable for modellers new to Real Estate and experienced Real Estate Analysts looking to formalise their skill set. This course will equip you with skills to start building your own financial models and the certificate will give your employers and colleagues reassurance of your expertise.
If you want to enhance your financial modelling skills over an extended period, the Real Estate Financial Modelling Certificate is the course for you.
2024 Course Dates
Cohort 9: 29th January – 25th March 2024
Cohort 10: 3rd June – 29th July 2024
Cohort 11: 30th September – 25th November 2024
REFMC - Alumni
This online real estate course has been put together exclusively for the Real Estate Financial Modelling certificate, using state of the art digital resources such as animations, video-steps, digital whiteboard and video-interactions as well as the spreadsheets, text based resources and tutor contact you would expect from any of Bayfield Training’s classroom based courses. Assessment is in the form of a guided model build exercise and written model appraisal. Participants benefit from an additional months access to the course platform after submission of the assessment.
On this course you will:
- Become a competent model builder, building Real Estate Financial Models from scratch
- Learn tricks and concepts from financial modelling experts with decades of experience in practice and academia
- Learn how to use Real Estate Financial Models to make informed investment decisions
- Learn at a consistent pace over 8 weeks allowing you to take the time to fully grasp this important skill
This course is suitable for:
- Chartered Surveyors
- Asset Managers
- Financial Controllers
- Financial Analysts
- Investment Managers
- Property Managers
- Real Estate Students/Recent Graduates
- Modules 1-3: All the tools, theory and mathematics required to build a financial model.
Modules 4-6: Deal ready Real Estate Financial models, incorporating live data, multi-let investment and development projects.
Modules 7-8: Project finance, financial risk and investment analytics.
Introduction to Real Estate Asset Modelling and how it relates to and is distinct from Econometric Models.
- Why Real Estate Asset Modelling is important
- Understanding the occupier, asset and development markets and the relevant modelling approaches for each
- Real Estate Sub-Sector Key Performance Indicators
- Introduction to conventional valuations and financial mathematics
- Understanding and minimising errors in Financial Models
Cash Flow Fundamentals
Constructing a financial model from first principles.
- Understanding all the components of a basic cash flow model
- Understand why Corporate Finance Models and Real Estate Models are different
- Financial Model Design
- Making the link between valuations, income mathematics and discounted cash flows
- Internal Rate of Return, Net Present Value,Worth and other metrics
- Features and techniques to aid fast model building
Developing the Cash Flow
Adapting financial models for different periodicities and building rent functions for different rent behaviour.
- Understanding how leases vary with respect to rent over time: Rent Reviews, Break Clauses, Rent Free Periods, Lease Expiries etc.
- Developing the concept of a Rent Function in Excel
- Logic mathematics and Logic functions
- Projecting rent to adapt to different lease contracts and growth patterns
- Alternative solutions to Logic functions
- Comparative analysis of lease structures in different jurisdictions and adapting financial models
Real Estate Data
Understanding the different sources of data, constructing basic time series models and recognising basic patterns.
- Key Property market indicators
- Characteristics and application of key input metrics for Real Estate Appraisals
- Understanding the eight components of Real Estate Price Dynamics
- Awareness of the different sources of data
- Reading and using general property market reports
- Constructing basic time series models and recognising basic patterns
Constructing a development appraisal from first principles and understanding development return metrics.
- Understanding the key components of a development project
- Understanding the difference between development and investment appraisals
- Residual Appraisals and Profit Calculations
- Cost orientated cash flows and phased sales
- Cumulative construction cost patterns: incidental, fixed, loaded and S-curve
- Development return metrics and Modified IRRs
Multi-let Cash Flows
Constructing an advanced multi-let cash flow model and learn different techniques to build flexible rent functions.
- Multi-let and portfolio model design principles
- Building complex date functions and date series
- The three multi-let rent projection techniques
- Perpendicular Rent Functions
- Incorporate advanced rent adjustments into the Rent Function
- Incorporate sector and period varying rental growth rates
- Simplifying OPEX and CAPEX projections
- Discounting techniques on complex and volatile cash flows
Constructing a flexible Real Estate Debt Finance model.
- Revision of the Mathematics of amortisation and debt finance
- Basic senior debt models and geared net cash flow
- LTV, IRR and Interest Rate Dynamics
- Flexible term, repayment options and deferred interest
- Loan covenant tests
- Understanding different tranches of debt
- Understanding how complex debt structures impact the returns to different parties
Model Interpretation and Risk Analysis
Learn how to read, analyse and report on real estate financial models.
- Understand how to read models and develop an investment narrative
- Visualise model outputs using graph functions, conditional formatting, dynamic symbols and dashboards
- Learn how to use built-in Sensitivity, Scenario Analysis tools and third-party add-ins
- Learn how to construct varied project scenarios in a systematic way
- Introduction to Monte Carlo Analysis and VBA
- Optimising sale dates and other parameters
- Create well written, attractive and persuasive reports
Course Director & Advisor
CEO, Bayfield Training
University of Cambridge | Executive Director, Real Estate Research Centre,
Department of Land Economy
University of Cambridge | Senior Fellow, Department of Land Economy
Bayfield Training | Senior Consultant