Learn from highly-experienced property professionals. Construct a robust real estate financial model from scratch. Use your model to underwrite property acquisitions and make investment recommendations.

This course is aimed at banking and lending analysts for real estate, investment surveyors,  real estate finance professionals and property consultants seeking a best practice approach to building robust real estate financial models.

Delegates will learn to construct valuation models and discounted cash flow models for single-tenant and multi-tenant buildings and perform sensitivity analysis for the investment decision. Delegates will also learn real estate finance fundamentals which will enhance their property investment analysis and underwriting processes.

Who should attend this course:

The Real Estate Investment and Financial Modelling in Excel courses are suitable for anyone seeking to develop their modelling skills. From entry-level graduates, APC candidates to experienced professionals and modellers, the fundamentals and techniques taught in our courses will help anyone improve their financial modelling expertise and reduce modelling errors.


Details

Duration: 2 days
Location: London
CPD Hours: 12
Level: Basic
Maximum number of delegates: 8
Course fee: £995

Next Dates: 
25 & 26 March 2019
9 & 10 April 2019
3 & 4 June 2019

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Content


Day 1


Best practice in financial models

  • Simple tips to help you become an efficient financial modeller
  • How to avoid errors and present your models in a persuasive way

Implicit investment valuation methods

  • Term & Reversion
  • Layer / Hardcore
  • Property yields
  • Defining term and reversionary yields
  • Calculating the equivalent yield

Build your cash flow from scratch

  • Inputs: passing rent, estimated rental value, initial and exit yields, market growth, review cycles and most importantly, target returns
  • Outputs: internal rate of return, net present value and worth
  • Annual and quarterly discounted cash flows: modelling purchase price, passing rent, rent reviews, exit rent and exit price

Gearing / Leverage

  • Adding senior debt “bullet” loan

Analyse the results

  • IRR, NPV and maximum bidding price
  • Data tables & sensitivity analysis
  • Risk visualisation (charts)

Case study:

  • Single-tenant office building in the UK

Day 2


Rent Forecast of Multiple Tenant Properties

  • Modelling tenancy schedules
    • Rent reviews, upward-only, break options, lease expiry
  • Modelling hypothetical second leases
    • Void period, rent free and estimated rental values
  • Time-varying rental growth

Net Operating Income Forecast

  • Modelling capital expenditure for refurbishment and operating costs (letting fees, void costs, empty rates)

Investment decision

Case study: multi-tenant office building in the UK


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What our customers say:

“I have made the big move to Capital Markets and am absolutely loving it. Your training helped me a huge amount to secure my dream job, so thank you so much!”

Charlotte Bradbrook, Investment Analyst, Knight Frank

The course was very easy to follow and also very informative. The approach was logical and straightforward and I ended the course with a much better understanding of cash flow modelling. I would definitely recommend this course.

UK & European – Portfolio Manager


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