This course provides comprehensive insights into various concepts and practices within the real estate industry. It is designed to give participants a deep understanding of the financial protocols essential to the real estate market, enabling them to independently create advanced financial models for real estate.
Overview
The curriculum details key concepts and metrics related to cash flow in real estate. Participants will gain valuable knowledge to evaluate options for owning or renting real estate and make informed financial and investment decisions. Additionally, the role of private equity in commercial real estate will be explored.
Who should attend
This program is suitable for individuals looking to enhance their skills in real estate modeling and analysis, including:
Methodology
The course employs a practical approach utilizing interactive discussions, case studies, games, and assignments to ensure comprehension of the concepts and their real-world applications.
Trainer
All trainers are selected for their extensive experience in finance. The instruction will be led by a highly experienced training consultant with over 20 years of expertise in top financial institutions, focusing on corporate finance, investment banking, fundraising, company valuation, and asset valuation.
Course Content
Module – 1
An Overview of the Real Estate Segment
• Understanding the structure of the real estate industry
• Analyzing the access points and performance metrics of the real estate market
• Importance of accounting in the real estate sphere
Module – 2
Exploring Different Real Estate Business Models
• Examining the ‘Develop and Hold’ model
• Analyzing the ‘Develop and Land Lease/Sell Pads Site’ model
• Understanding the implications of the ‘Develop/Lease-up and Sell’ model
Module – 3
Review of the Real Estate Modeling Process
• Examining net operating income modeling for various types of properties such as residential and commercial
• Exploring cash flow modeling before debt service
• Understanding the processes involved in interest expense modeling
Module – 4
Setup of Real Estate Financial Modeling
• Establishing transaction and operational assumptions; projecting construction timelines
• Developing pro forma statements and return calculations
• Making investment decisions grounded in realistic conditions and model outputs
Module – 5
Managing Construction Schedules in Real Estate
• Constructing a work breakdown structure
• Setting reasonable milestone deadlines
• Linking milestones with available resources
Module – 6
Incorporating Revenues, Costs, and Taxes in Financial Models
• Calculating capitalization rates and net operating income (NOI)
• Conducting sensitivity analyses and valuation matrices
• Reviewing cash flow before tax and after tax
Module – 7
Financing Real Estate Ventures
• Understanding standard financial covenants and their impact on cash flow
• Importance of different financial structures like amortization
Module – 8
Real Estate Debt Modeling
• Gaining insight into loan-to-value (LTV) and loan-to-cost (LTC) ratios
• Evaluating debt service coverage ratios (DSCR) and debt yields
Module - 9
Establishing the Waterfall Mechanism in Real Estate
• Exploring the equity waterfall model's mechanics
Module - 10
Creating a Real Estate Cash Flow Statement
• Analyzing gross profit ratios (GPR), general vacancy, and credit losses
Module - 11
Conducting Sensitivity and Scenario Analysis
• Analyzing property values through sensitivity analysis
Module - 12
Valuation in Real Estate
• Performing discounted cash flow (DCF) analysis and cash-on-cash return
Module - 13
Private Equity Investments in Real Estate
• Strategizing about capital reserves and analyzing cash flows
Module – 14
The Principal Metrics in Real Estate Analysis
• Evaluating essential real estate investment metrics
If further information is needed, please visit the website or send an inquiry via email.