Financial Modelling in Argus
In this two-day course, attendees will learn how to use ARGUS to an intermediate level and will be exposed to its most advanced features. No previous ARGUS knowledge is required and attendees do not need any specific knowledge before taking the class. A limited exposure to commercial real estate or finance is sufficient as all relevant financial concepts are covered in class.
With the introduction of Argus Enterprise, there have been substantial changes from Argus DCF. Even if you’re an experienced user of DCF, you will benefit from this class.
On this course, you will….
- Build ARGUS financial models using nothing more than a few assumptions
- Edit and audit existing models for errors and unreasonable assumptions
- Determine an appropriate purchase price and leverage based on desired rates of return and risk tolerance
- Build detailed cash flow projections, sources and uses schedules, and other financial reporting tools such as discounted cash flow analysis (Net Present Value and IRR)
- Estimate future sale prices based on cash flow and other approaches
- Account for the impact of debt financing
- Model complex partnerships and determine the returns to each investor
- Develop detailed construction budgets for development projects
- Build advanced mortgages
- Understand how to use ARGUS to model all major property types (office, industrial, retail, residential, and hotel)
- Run advanced scenario and sensitivity analyses on individual properties and portfolios
- Export all data and reports to customized reports in Excel
A strong emphasis is placed on how the software is actually used in the business world. All students will receive “hands-on” experience in the class and will also work on a case study at three separate times over the weekend. With each step, the case study’s complexity builds as the attendee’s knowledge increases. Different solutions to the case study are reviewed and discussed at the end of each unit.
Who will benefit from the course?
- Acquisitions and development professionals
- Loan officers and mortgage brokers
- Real estate brokers
- Current and recent graduates of MBA and undergraduate programs
- Portfolio manager and asset managers
- Anyone that would like to either break into commercial real estate or further their development of real estate financial knowledge
- Creating and Answering the Basic Four Questions for Any ARGUS Model
- Help! – Three Ways to Get It
- Property Level Revenues, Expenses, and Capital Expenditures
- Operating vs. Non-Operating Expenses
- Introduction to Property Level Reporting
- Entering a Single Tenant
- Market Leasing Assumptions
- Introduction to Vacancy and Credit Loss
- Property Purchase and Investment
- Resale and Valuation
- Debt Financing
- Present Value Discounting
- Case Study: Reed Tower, Part 1
- An Introduction to Auditing
- Multiple Tenants
- Detailed Base Rent
- Retail Sales Rent (“Percentage Rent”)
- Space Absorption
- Parking Revenue
- Tenant Groups
- Advanced Vacancy
- Available Date vs. Start Date
- Tenant Recoveries
- Grossing Up Expenses
- Reference Accounts
- Case Study: Reed Tower, Part 2
- Introduction to the Details of Leases
- Rent Abatements
- CPI Rent
- Miscellaneous Rent
- Introduction to the Market Menu
- Advanced Market Leasing Assumptions
- Intelligent Renewals
- Construction Costs
- Global Categories
- Report Packages
- Case Study: Reed Tower, Part 3
- Escrow Accounts
- Argus and Excel Integration
- Sensitivity Matrix
- Apartment Model
- Hotel Model
- Scenario Analysis
- Portfolio Analysis
- Investment Structures
There is a short break (15 minutes) each day in the morning and the afternoon.
Facilitator: Joshua Kahr
Joshua Kahr has taught real estate finance and real estate capital markets for Columbia University’s MS in Real Estate Development program since 2005. He has also taught graduate level finance courses at Northwestern, New York University, and Georgetown University. For corporations, he has taught over 200 two-day seminars on finance and Excel modeling.
Mr. Kahr is the principal of Kahr Real Estate (www.kahrrealestate.com), a training and consulting company that he founded in 2002 and that serves the commercial real estate industry. In 2008, he founded Metropolitan America (www.metropolitanamerica.com), a real estate investment company. Metropolitan America owns and manages 15 apartment buildings in New Jersey.
Prior to this, he held positions in investment sales at a regional brokerage firm and in acquisitions at a fund that focused on environmentally contaminated real estate. He also served for five years on the board of directors for Monmouth Real Estate (NYSE: MNR).
Publications include two books on real estate market analysis, Real Estate Market Valuation and Analysis (John Wiley and Sons: 2005) and Beyond the Bubble (Amacom Books: 2007).
He has a Master of Science in Real Estate from New York University and a Bachelor of Arts in Economics from Reed College.