What are debt covenants? How to measure them?

Definition A debt covenant is an agreement or a ‘promise’ set by the lender to ensure that companies or borrowers  operate within certain restrictive parameters. They are also known as financial or banking covenants. The purpose of debt covenants is not to burden the borrower but rather to: Protect lenders against default eventsLimit downside by … Continue reading What are debt covenants? How to measure them?

How to build a real estate financial model from scratch

A Financial Model is a structured and dynamic tool which links inputs/assumptions with periodic cash flow to produce results used for investment decisions or recommendations. They are mathematical models designed to represent a simplified version of a financial asset’s performance. Financial models ‘model’ or replicate real life financial issues based on assumptions so outputs are … Continue reading How to build a real estate financial model from scratch

What You Need to Know About Commercial Real Estate Debt

Just like getting a mortgage from the bank to finance your residential property, Commercial Real Estate Debt can also help developers and investors with their business goals. The main purpose of this loan from borrowers is to increase the capital available for investment and to help them diversify their investments. Without a fully functioning debt … Continue reading What You Need to Know About Commercial Real Estate Debt

What is the layer method of property valuation?

The layer (or hardcore) method of valuation is used as an alternative to the more traditional term and reversion approach. The approach has both its advantages and drawbacks which can be seen here. The theory with the layer method of valuation is: It capitalises present rent (hardcore rent) into perpetuity.Then it capitalises the top slice … Continue reading What is the layer method of property valuation?

Property Development: is this the right time to invest?

Making predictions Predicting the property market, when it is at its peak or its lowest is difficult. However, for a property developer, the time is right if they can mitigate risk. In order to make informed and effective decisions, developers need to have a deep understanding of their market. It is the length of the … Continue reading Property Development: is this the right time to invest?

How to prepare for a real estate financial modelling test

Request a sample test First, we need to understand what a financial modelling is so we can keep this in mind throughout the test and better accept why companies are asking us more and more to go through Excel tests in order to proceed to the next round of interviews. Financial Modelling in real estate … Continue reading How to prepare for a real estate financial modelling test

Roadmap out of Lockdown

As Boris Johnson announced his roadmap to ease lockdown restrictions, we look at how Cambridge Finance has navigated the pandemic and how we are converting this experience to bring best in class training for all our delegates. Training before Covid-19 Prior to lockdown, all of Cambridge Finance courses were delivered face to face in central … Continue reading Roadmap out of Lockdown

Co-Living – what is it and why is it gaining in popularity?

Co-living is where three or more tenants, not from the same family or household, share living accommodation. This scenario is common in cities such as London where the cost of living is high. Other advantages of co-living are reduced utility costs as this is shared among the tenants or included in the rent and the … Continue reading Co-Living – what is it and why is it gaining in popularity?

Why has the government encouraged training whilst on furlough?

The government rules for staff whilst on furlough have been strict, and incorporate the following: You cannot ask staff to do any work that makes money for your business or any business linked to yours, orprovide any service for your business or linked to your business However, your staff can: Take part in trainingvolunteer for … Continue reading Why has the government encouraged training whilst on furlough?

5 reasons why professional training benefits real estate professionals

In training, we love a good acronym, so we have come up with one for this article; SPACE. 1. Skills Professional training allows for the acquisition or sharpening of knowledge and skills, increased collaboration, curiosity and professional awareness. Once you feel you have the knowledge and skills sharing them in a professional situation gains you … Continue reading 5 reasons why professional training benefits real estate professionals