Real Estate Valuation and Modeling

• Apply advanced excel tools in project feasibility modeling
• Project financial statements for a greenfield project
• Forecast Revenue for lease or sale type real estate project
• Develop EPC (Engineering, Procurement, and Construction), CapEx (Capital Expenditures) and funding schedule using timing flags
• Build a project's repayment schedule for various sources of financing
• Analyze the financial implications for construction, sales and lease phases of real estate projects
• Assess a project’s financial feasibility from both the lender and the investor’s perspective
• Calculate NPV (Net Present Value), IRR (Internal Rate of Return), NOI (Return on investment), and other metrics to evaluate the financial feasibility
• Perform scenario analysis

CONTENT

• Advanced Excel Tools Used in Real Estate Modeling
• FAST standards of Financial Modeling
• Real Estate Modeling: An Introduction
• Input Sheet and assumptions
• Forecasting timing sheets and the concept of timing flags
• Developing EPC and Capex (Capital Expenditures) schedule
• Forecasting debt repayment and interest schedule (For different types of debt structure)
• Interest during construction & controlling circular referencing

• Forecasting Revenue:
  • Lease type project
  • Sale type project
  • Mixed revenue structure
     
• Projecting other core schedules like Depreciation, Working Capital and Equity
• Projecting Income Statement, Balance Sheet & Cash Flow Statements
  • Calculating project’s cost of equity, cost of capital
  • NPV (Net Present Value) and IRR (Internal Rate of Return) analysis for project and investors
  • DSCR (Debt Coverage Ratio) analysis
  • Free cash flow analysis
  • NOI (Net Operating Income) analysis
     
• Cash Flow waterfall analysis for different levels of investors
• Sensitivity analysis of the project changing key inputs

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.