Bayfield Training - Real Estate Development School (In-Person)

Real Estate Development School (5 days)

Real Estate Development School is a five day course that focuses on both the theoretical and practical elements of Commercial Real Estate Development. The training starts with two days surrounding the theory of Real Estate development, this will provide delegates with a grounding of the subject matter. to give the delegates a grounding of the subject matter. On day three the school will introduce Microsoft Excel and essential Real Estate Financial Modelling theory. On days four and five, the school will delve into practical Financial Modelling skills, focused on building a Development cash flow model.

This course will educate the delegate on Risk Management, Finance, Legal, Regulatory, Bureaucratic and Practical aspects of the Development process, to help provide the delegate with a full understanding of the Development lifecycle.

Upon completion of the course, you will have the expertise to confidently model Real Estate Development cash flows to a proficient level, empowering you to make informed financial decisions through your enhanced understanding of Real Estate Development in its entirety.

The Real Estate Development School combines three of our courses:

• Commercial Real Estate Developer
  
• Introduction to Real Estate in Excel
  
• Real Estate Developer

On this course you will…

• Learn what constitutes Development physically and economically
  
• Gain an insight into the Development Process at a Macro & Micro level
  
• Learn the different characteristics of Real Estate Sectors
  
• Recognise spreadsheet navigation and presentation tricks
  
• Learn spreadsheet modelling best practice
  
• Understand financial mathematics & conventional valuations
  
• Develop proficiency in creating robust models.
  
• Construct a Development focused Financial Model starting from foundational principles
  
• Analyse financial and project completion risks

Who will benefit from this School?

• Real Estate Professionals who would like to update their skills in latest practices in Development
  
• Professionals practicing in an associated field, Legal, Planning, Managing, Agency, Owners and Financiers
  
• Graduates looking to work in corporate Real Estate development
  
• Managers who would like to communicate more effectively with investors and owners during the formation phases of development
  
• Real Estate professionals at any level with exposure to real estate financial models on a frequent basis
  
• APC candidates
  
• Mid-Senior professionals looking for a refresher on core model building skills and best practice

Course Outline

Day One

Commercial Real Estate Developer

Why Develop?

• The Real Estate Market System
  
• Development Models
  
• The Economics of Development
  

Who Develops?

• Profiles of Developers
  
• Risk and Rewards of different types of project
  
• Who builds what and why?
  

What to Develop

• Use looking for a site
  
• Site looking for a use
  
• Planning inputs
  

Feasibility

• Best Use Value
  
• Viability Assessments
  
• Worth vs Value
  
• Financing
  

Delivery

• Evaluation
  
• Market Analysis
  
• Design Principals
  
• Time line and risk profile

Day Two

Commercial Real Estate Developer

A Macro View

• External influencers
  
• Development pressure and Prospects
  
• Disposal of Development
  

Parties to Development & Agendas

• Owners, Tenants, Public Sector
  
• Development Team
  
• Contractors
  
• Agency

Day Three

Introduction to Real Estate in Excel

Spreadsheet modelling best practice

• Modelling Life Cycle
  
• Types of Model
  
• Modelling Timescale
  

Financial mathematics

• Introduction
  
• Compound Growth
  
• Present Values
  
• Net Present Value
  
• Internal Rate of Return
  

Conventional valuations

• Introduction
  
• Term & Reversion
  
• Layer Method
  
• Over Rented
  
• Equivalent Yield
  

Real Estate cash flow models (Single-Let)

• Introduction – Understand UK Leases
  
• Annual Discounted Cash Flows
  
• “What If” Analysis
  
• Quarterly Discounted Cash Flow
• 
  Cash Flows with Rent Review
  
• Multiple Rent Reviews
  
• Pivot tables, V-Lookups, Data Tables and More…
  

Additional topics:

• IF & SUMIF
  
• Sensitivity Analysis: Data Table & Changing Calculation Options
  
• V-Lookups
  
• Pivot Tables

Day Four

Real Estate Developer

Learn how to build a discounted cash flow, analyse returns and understand the components of development models

• Gross versus Net Yields, calculating Net Development Value (NDV)
  
• Profit residual, with and without financing
  
• Site residual, how to calculate profit without knowing your costs.
  
• Introducing financing to site residual calculations
  
• Purchase price and acquisition costs
  
• Phased Sales, marketing and disposal costs
  
• Modelling construction costs using straight line basis, fixed costs, variable costs, incidental costs and construction fees
  
• Professional fees
  
• Income and expenditure project functions
  
• Logic functions, logic tables and array formulae
  

Day Five

Real Estate Developer

Learn how to build a detailed property development project cash flow, add financing and perform risk analysis on commercial development projects

• Multiple IRRs, competing projects, scoping and linear programming, maximising performance
  
• Return metrics: Equity profit ratio (EPR), Costs paid out of proceeds (POP), Profit on cost ratio (PCR)
  
• Alternative site calculation, Net present value (NPV),
  
• Modelling construction costs using S-curve , variable costs,incidental costs and construction fees
  
• Switching between scenarios
  
• Introduction to Development financing, Pari Passu versus Equity First Financing
  
• Debt scheduling: brought forward and carried forward method
  
• Consideration of the impact of development finance interest, fees and covenants

This training is available both in classroom and online, as well in-house for your team. We can come to your premises and deliver this five day financial modelling school to your team. For details on this and anything else, please contact us:

E - [email protected]

W - www.bayfieldtraining.com

Host or Publisher Bayfield Training Ltd