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?
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
Valuation in crisis– Art versus Science – The Art View
The Art View on Valuation The life of a valuer is pretty tough at the best of times, even with the benefit of good comparable evidence. This is because valuers are carrying out transaction analysis in the most imperfect market that exists. This is why valuation is often described as both an art and a … Continue reading Valuation in crisis– Art versus Science – The Art View
Demystifying real estate financial models
Real Estate financial models are mainly spreadsheets used extensively as an aid in decision support in the areas of property investment and lending. These spreadsheets will ascertain the present value of a stream of cash flows and generate risk / return ratios. How do I create a real estate financial model? Being proficient in real … Continue reading Demystifying real estate financial models
5 Things Highly Productive Financial Analysts Do Differently
Being a highly productive financial analyst is not an innate talent; it’s simply a matter of organising your spreadsheets so that you can efficiently get the right calculations and analysis done. Real estate financial analysts in particular... So, what behaviours define highly productive financial analysts? What habits and strategies make them consistently more productive than others? And … Continue reading 5 Things Highly Productive Financial Analysts Do Differently
The benefits of SUMPRODUCT?
By Victor Alarsa If you are one of those who loves to model using lots of “IF”, “AND” and “OR” functions, then this article is for you. Let’s discuss the SUMPRODUCT, which literally means summing up the multiplication (product) of two or more different arrays. For example, if you want to calculate total rental value … Continue reading The benefits of SUMPRODUCT?
An overview of the “UK-complex-housing-planning-permission-system”
By Victor Alarsa Who’s responsible for granting planning permissions? The planning system is designed to be applied by local authorities. There are three layers of authorities: Nationally (national plan) County councils (regional plan) Unitary authorities such as districts, boroughs or city councils, hereafter referred as to Local Planning Authority (LPA) LPA is ultimately responsible for … Continue reading An overview of the “UK-complex-housing-planning-permission-system”
The UK Private Rented Sector (PRS) perspectives and Build to Rent (B2R) opportunities
By Victor Alarsa The PRS is the fastest-growing sector in the UK properties market. It is England’s second-largest housing tenure after owner occupied, 62% against 20%, as shown below: Source: Alex Bate, Building the new private rented sector: issues and prospects (England), 2017 Since 2010 the private rented sector has provided more than one million … Continue reading The UK Private Rented Sector (PRS) perspectives and Build to Rent (B2R) opportunities