Principles of DCF for Real Estate Valuations
In partnership with:
Discounted Cash Flows for Real Estate Valuations
A Real Estate Financial Model is the abstract representation of an investment scenario. Building a Real Estate Financial Model requires theory, maths and excel.
This one day course has been developed to teach essential Real Estate financial modelling theory, functions and formulas to individuals working in the Real Estate sector. The training aims to give delegates a grasp of MS Excel and its usage in Real Estate cash flow modelling. You will be able to set up a financial modelling cash flow from a blank spreadsheet by using the most common shortcuts, formulas and functions.
After building a model from scratch, delegates have the opportunity to run simple, and then more complex core valuations through KEL’s industry standard program – KEL Investment Valuer.
Delegates will have full access to the KEL software during the course, ensuring an immersive user experience of the tool.
This is an excellent starter/refresher course, whether you’re a recent graduate or a mid/senior professional interested in Real Estate Valuations.
Key Takeaways:
- Being aware and better prepared for the RICS recommended move towards NPV valuations.
- Having the skills to understand and carry out DCF analysis and NPV valuations.
- Gaining familiarity with one of the industry standard valuation programs.
On this course you will:
- Learn spreadsheet modelling best practice
- Look over excel tips for general day to day use in MS Excel
- Recognise spreadsheet navigation and presentation tricks
- Understand financial mathematics & conventional valuations
- Identify real estate cash flow model single-let common functions and formulas
- Learn how to use KEL’s software for valuation, appraisal & analysis
This course is suitable for:
- Surveyors that need to learn how to use DCF as a valuation method
- Graduate Real Estate professionals
- Real Estate professionals at any level with exposure to RE financial models on a frequent basis
- APC candidates
- Mid-Senior professionals looking for a refresher on core model building skills and best practice
- Any professionals looking to learn how to build a real estate focused model from
Course Outline
Conventional Valuations
- Term & Reversion
- Layer or Hardcore Method
- Over Rented
Real Estate Cash Flow Models (Single-Let)
- Annual Discounted Cash Flows
- “What If” Analysis
- Quarterly Discounted Cash Flow
- Cash Flows with a Rent Review
- Multiple Rent Reviews
- NPV and IRR
KEL – Property Valuation Software
- Introduction to KEL
- Overview of KEL Investment Valuer program
- Hands-on inputting of case study data
- Inclusion of breaks, voids, capex & irrecoverables
- Conventional capitalisation valuation
- IRR & NPV calculations
- Reporting
- Sensitivity Analysis
- Interrelation between KEL Investment Valuer and MS Excel
Additional Topics
- IF functions
- Goal seek
- Sensitivity Analysis: Data Tables
Questions & Answers
30 minutes dedicated to questions and answers between delegates and trainers.
Programme Managers
Sonia Martin-Gutierrez
Course Director & Advisor
CEO at Bayfield Training
Michele Pryor
Senior Training Consultant
Trainer and Support Consultant at KEL
KEL
Providing valuation, appraisal & analysis software for property professionals since 1985
No other company offers the same range and depth of valuation software. We provide a choice of solutions to meet your needs. We do not believe it is enough to just provide dependable, accurate software. Whatever your system or organisation, there may be times when you need timely support. Delays can be expensive or disruptive. We’re here with prompt dependable support. Don’t take our word for it; ask our clients.
We never lose sight of the basic needs for reliable calculations, ease of access to valuable information and effective decision-making tools and reports. Programs are continually being updated. We pay close attention to client requests, for example flexibility in sharing and installation of licences, changes in technology and to the latest industry requirements and standards.
KEL Investment Valuer defies the concept that large multifaceted valuation software needs to be difficult to use or requires a large budget.
Quick and easy to use its comprehensive calculation abilities allow for either capitalising income using the hardcore, term and reversion, initial yield methods or by adopting the discounted cash flow (DCF) method to create NPV and IRR calculations. Reporting is flexible too – in both PDF and Excel formats.