Real Estate Financial Modelling School

Real Estate Financial Modelling School is an intensive week meticulously designed to teach the best practices to create flexible and robust cash flows in Excel.

This week long CPD accredited training is ideal for those Real Estate professionals, who are looking to bolster the DCF modelling skills. This course covers Real Estate Investment, Development, Finance & Risk.

The school combines three of our courses:

All of the courses are interlinked to give you a full understanding of the subject using Excel.

On this course you will…

Implement cash flows in excel throughout the whole week.
In the first two days you will learn how to develop rent functions and net operating income. We will show you how to value and appraise property investments and analyse the results.
On the third and fourth day you will learn how to model and analyse development projects using both residuals and cash flow methods. It will show you how to interrogate and compare alternative return metrics such as profit-equity multiples, profit and cost, net present value, worth and internal rate of return. Additionally you will cover how to model cash flow from different sector office, retail and leisure.
Finally on the fifth day debt structures will be covered as well as joint ventures and partnership financing. You will also learn how to implement the full spectrum of the risk analysis from sensitivity to Monte Carlo.

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 Investor I

Modelling international variations in real estate income streams i.e. Includes indexation patterns, rent caps, discounts / premiums to indexation, rent free periods, as well as how to deal with costs during vacancy
Modelling sector variations in real estate income streams i.e. Office versus industrial, retail & leisure
Further senior debt covenants
Advance Rent Function techniques to manage feature rich lease structures

Day Four

Real Estate Investor II

Introduction to development appraisals
Residual models, site and profit calculations
Development cash flows versus Investment cash flows
Introduction to straight line versus S-curve costing
Phased asset sales in development appraisals
Discounting development cash flows
Complimentary return metrics for development appraisals
Introduction to development finance

Day Five

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

Course Testimonials

I participated on the Bayfield Real Estate Financial Modelling School in December. It was a fantastic week long course that started off with basic fundamentals and continuously built on those foundations, ending in more complex real estate modelling. The trainer was a fantastic guide, ensuring participants understood what was being taught and offered time for questions. He often went outside the course contents to answer questions or an area of interest. I feel I am now a lot more knowledgeable about REFM and have more confidence in using it effectively in the work place. I want to build on this going forward.

Chartered Surveyor – LCR Property

The Real Estate Financial Modelling School is a brilliant course that ensures a thorough understanding of the fundamentals of Excel and modelling theory and builds skills to be able to understand and manipulate models going forward.

Surveyor – Commercial Property Agency

The course was really interesting, the interactive platform made the content enjoyable.

Surveyor – Colliers International

The IT systems worked well, and the course was extremely informative and certainly developed my modelling skills.

Head of Acquisitions and Sales – Property Investment and Development Company

Course Details

Number of days: Five days
Delivery: In-Person & Virtual
Course type: Schools
Course level:
Pre-requisite: None
CPD Hours: 32.5

Upcoming Dates – Public Course Dates

Price Per Person

In-Person

^£4600_/Course

Purchase Now

Course Delivery
Course Manual
Course Files
CPD Accredited Certificate
Online Learning Resources
Financial Modelling Proficiency Badge