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

Real Estate Investment School (4 days)

Real Estate Investment Cash Flow Modelling School is a four day course, that unravels the complexity of Investment Cash Flows through Advanced Modelling, Interpretation and Theory.

With a strong emphasis on practical application, you will gain a profound understanding of the complexities involved in analysing investment cash flows and interpreting their implications for effective decision-making.

Upon completion of the course, you will have the expertise to confidently model investment cash flows to a proficient level, empowering you to make informed financial decisions and drive positive outcomes for your investments.

The Investment focused school combines three of our courses:

• Real Estate Analyst
• Real Estate Modelling Masterclass
• Understanding Key Principles of Real Estate Financial Modelling

On this course you will…

• Construct Investment Financial Models starting from foundational principles
• Learn how to value an appraise property investments.
• Gain a comprehensive understanding of modelling tenancy schedules, including lease structures, rental income projections, lease expiry analysis, and lease renewal
• Develop proficiency in creating robust models.
• Understand how the application and use structure finance products in Real Estate
• Learn advanced modelling techniques to analyse underlying asset risk
• Appreciate the importance of data in investment cash flow modelling.
• Gain a deep comprehension of the interrelationship between the metrics used in investment cash flow modelling

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 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

Day Four

Understanding Key Principles of Real Estate Financial Modelling

Real Estate Financial Modelling Mathematics

• Time Value of Money
• Net Present Value (NPV)
• Internal Rare of Return (IRR)
• Growth
• What Discount Rate?
• Certainty of a cash flow
• Liquidity

Price, Value & Worth

• Comparing Price, Value and Worth
• Conventional Valuation Methods
• Term and Reversion, Layer Method
• Property Yields and Capitalisation Method
• Exit calculations across Europe

Discounting Cash Flow Models

• Investment Appraisal Models
• Cash flow inputs: Rents, Yields, Growth Rates, Target Returns
• Cash-on-Cash and Equity Multiple
• Discount Rates & Exit Cap Rate
• Operating Assumptions
• Adding borrowing and analysing geared returns

Model Interpretation and Analysis

• Sensitivity analysis and scenario analysis
• Growth and inflation
• Performance measures
• Contemporary issues for analysis (such as the rise in interest rates

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 course 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