Bayfield Training - Real Estate Financial Modelling School (In-Person)

Real Estate Financial Modelling School (5 days)

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 week long CPD accredited training is ideal for those Real Estate professionals, who are looking to bolster the DCF modelling skills. This course covers Real Estate Investment, Development, Finance & Risk.

The school combines three of our courses:

• Real Estate Analyst
• Real Estate Investor
• Real Estate Modelling Masterclass

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 analyse 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. Additionally you will cover how to model cash flow from different sector office, retail and leisure.
• Finally 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 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

Course Outline

Day One

Real Estate Analyst I

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

Real Estate Analyst II

Know how to build a multi-let property cash flow and apply the concepts on a hypothetical 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)

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

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

Real Estate Modelling Materclass

• 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

Included in the Course

• CPD Accredited Certificate & LinkedIn Proficiency Badge
• Hard Copy Course Manual
• Course Files
• Online Learning Platform access - Further Learning Resources (Reading, Files and Videos)
• Post Course Support - Two Months of Questions & Answers, and One year of support is available for an additional fee

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