Real Estate Financial Modeling Mastery
There are a lot of "real estate financial modeling training courses" out there, but most courses and books make 3 big mistakes:
- Their models and examples are too complex and convoluted; no one has time to review a 5,673-row Excel file that took 412 hours to build.
- Their materials are not based on real-life case studies, but on the author's imaginary view of what's useful.
- They don't help you to prepare efficiently. Yes, it's nice to have 571 Excel files and 142 hours of video... but what if you only have 1 week, 2 days, or 4 hours to prepare for your interview?
Gain an Unfair Advantage by Quickly Conquering theTwo Topics That Matter Most in Any Real Estate Interview:
But... There Are Some Topics This Course Doesn’t Cover,So It May Not Be for You!
We believe in radical transparency, so I don’t want to mislead you about what this course can do for you.
We focus on individual properties and real estate investment trusts (REITs).
Our goal is to prepare you efficiently for Excel-based case studies and interviews and get you up to speed on the job quickly.
As a result, we specifically exclude certain topics:
- This Course Does NOT Cover Excel Shortcuts and Basic Knowledge of Accounting and Finance: You must already know these topics to complete this course. If you do not, you should register for our Excel & Fundamentals course instead of this course or in addition to it (and then complete the Excel & Fundamentals material first). Here's a simple test: Do you know what PV, NPV, and IRR mean? And could you write an INDEX/MATCH function to retrieve data in Excel? If not, start with the Excel & Fundamentals course.
- This Course Does NOT Cover Every Single Combination of Models, Property Types, and REITs: Our goal is efficiency, not bells and whistles. We do cover a wide variety of companies, properties, and deals, but we do not attempt to teach all 5,413 possible combinations of property types, sub-industries, and geographies.
- This Course Does NOT Cover ARGUS and Other Non-Excel-Based Software: Yes, ARGUS and other real estate-specific software can be very useful, but it's not our focus. You will learn how to use the output from these programs in Excel, and you will learn how to replicate the functionality of these programs in Excel, but you won't get tutorials on these programs. It's a whole separate topic that would require another full-length course.
- This Course Does NOT Cover Non-Property and Non-REIT Analysis: We do not teach private equity fund modeling (how entire investment funds, not individual properties, operate), nor do we cover gaming/lodging/homebuilding companies, real estate operating companies, or commercial mortgage-backed securities (CMBS). If we did, this course would be 200 hours long, and no one would ever complete it.
If you are interested in one of the topics above, you should look at offerings from other training providers.
But if you want the most effective and efficient preparation for real estate interviews, Excel-based case studies, and the job itself, this is the course for you.
Take a Look at What You’llGet Immediately After Signing Up...
Here's the full run-down of everything in Real Estate Financial Modeling:
Module 1: Real Estate Overview and Short Case Studies/Modeling Tests
In this module, you will get an introduction to Real Estate Financial Modeling, and you'll practice key skills with short case studies/modeling tests across the main property and deal types.
Then, you'll move into the real estate investment trust (REIT) lessons and learn how accounting, the financial statements, and valuation all differ.
These case studies are all short (30, 60, or 90 minutes) so you can get results and practice your financial modeling skills without needlessly complicated models or documents.
If you have limited time to prepare, you can complete this module in a weekend and feel confident and prepared for your interview by Monday morning.
- 6 Case Studies on Individual Properties: These include 2 office/retail acquisitions, an industrial development, a hotel acquisition/renovation, a pre-sold condominium development, and a multifamily acquisition. They range from 30 minutes to 90 minutes of completion time, and each one has a full video tutorial walk-through and written answers.
- 2 Case Studies on Real Estate Investment Trusts (REITs): These 90-minute case studies cover a U.S.-based REIT (Park Hotels) and a European REIT (Inmobiliaria Colonial SOCIMI), and they teach you how to project the three statements and value REITs with a DCF, DDM, NAV, and comparables. Each case study has accompanying video tutorials and written answers.
- 4 Overview Lessons: These video lessons and slides explain the main property and deal types and walk you through accounting, financial statement analysis, and valuation for REITs, including differences under U.S. GAAP and IFRS.
Module 2: 4-Hour Office Development Modeling Test (100 Bishopsgate)
In this module, you will complete a 4-hour real estate development modeling test for an office property in the City of London (100 Bishopsgate). You will expand on the simplified 90-minute version in the introductory module and build in support for a monthly schedule with flexible refinancing and exit dates and multiple scenarios.
You will also add support for tenants with different lease types, calculate returns to both equity and mezzanine investors, build a mixed IRR/multiple-based waterfall schedule, and add support for the Lookback Provision using VBA code.
Finally, you’ll answer the case study questions, make an investment recommendation for each investor group, quantify the risk factors, and explain how to mitigate the main risks.
- 10 Step-by-Step Lessons: These video tutorials walk you through how to complete the model efficiently and answer the case study questions, including how to make investment recommendations.
- Waterfall Returns Schedule with Mixed IRR and Multiple-Based Tiers: You’ll learn how to create a variation of the standard waterfall returns schedule and how to split up the cash flows based on the property's performance.
- Brief VBA Tutorial: You'll learn how to use VBA to add support for a "Lookback" function that evaluates the deal's performance and then re-distributes the proceeds once the overall IRR is known at the end of the deal.
Module 3: 2-Hour Hotel Acquisition & Renovation Modeling Test (Jumeirah Beach Hotel)
In this case study, you'll complete a 2-hour hotel acquisition and renovation modeling test based on a 5-star resort in Dubai, the Jumeirah Beach Hotel.
You'll start by setting up assumptions for different market and operational scenarios, including Base, Upside, and Downside cases and Independent vs. Franchise cases, and you'll use them to build a Pro-Forma for the property.
Then, you’ll set up the acquisition, exit, and financing assumptions, project the Debt service, calculate returns to equity investors, and set up sensitivity tables to analyze the deal outcome under varied assumptions.
Finally, you’ll make an investment recommendation, identify the key risk factors and explain how to mitigate them, and comment on the Independent vs. Franchise choice and the terms of the Permanent Loans.
- 6 Step-by-Step Lessons: In these video tutorials, you'll learn how to set up and complete the model and how it expands on the simplified version in Module 1.
- Support for 6 Different Scenarios: You’ll learn how to add support for multiple market and operational scenarios, including Base, Upside, and Downside and Independent vs. Franchise cases - and how key assumptions like the ADR and Occupancy Rate change in these cases.
Module 4: 3-Hour Multifamily Acquisition & Credit Case Study (The Lyric)
In this case study, you will build a multifamily acquisition and credit analysis model and make an investment recommendation on the Senior Loan, Mezzanine, or Preferred Equity used to fund the property.
You’ll start by building a standard Pro-Forma for The Lyric, a 234-unit multifamily property in Seattle, and you’ll add support for the acquisition, exit, and debt service, as well as the equity returns calculations.
Then, you’ll calculate the returns and recovery percentages for the lender groups in different scenarios and exit dates, and you’ll create sensitivities to further “stress test” the deal.
Finally, you will build a DCF to value the property, evaluate comparable properties and a Replacement Cost analysis, and answer case study questions about the debt and equity, the operating assumptions, the risk factors, and the valuation.
- 9 Step-by-Step Lessons: In these video tutorials, you'll extend the multifamily acquisition model from Module 1 and add credit analysis and valuation sections, as well as multiple scenarios and more complex financing assumptions.
- Credit Analysis: You'll learn how to tweak a standard real estate model and add credit features, such as recovery and IRR analysis, as well as support for prepayment penalties, equity grants, interest-only periods, and interest rate floors and spreads.
- Valuation/DCF Analysis: You’ll use data from comparable properties and recent property sales and build a DCF analysis to draw conclusions about the purchase price.
Module 5: 4-Hour Office/Retail Acquisition & Renovation Modeling Test (45 Milk Street)
In this case study, you will build an acquisition and renovation model for a mixed-use office/retail property and make investment recommendations for the Limited Partners, General Partners, Senior Lenders, and Mezzanine Investors.
You’ll start by setting up the transaction assumptions for 45 Milk Street, a 61,000-square-foot property in Boston, and then you’ll build a monthly and annual Pro-Forma that supports different lease types, start dates, and expiration dates, including Percentage Rent leases.
Then, you’ll project the Debt Service, including a TI/LC/CapEx Holdback released on a monthly basis, and you’ll calculate the returns to each investor and lender group.
In the Waterfall Returns Schedule, you will build in support for Preferred and Catch-Up Returns, and you’ll create sensitivity tables to analyze different outcomes.
Finally, you’ll use the model to make an investment recommendation for each group and explain how to mitigate the risk factors – or, for negative recommendations, what must change for the deal to work.
- 10 Step-by-Step Lessons: You'll learn to combine elements of the office development model and the hotel acquisition/renovation model in this set of video tutorials.
- Replicate ARGUS in Excel: You'll create a monthly tenant-by-tenant schedule that replicates much of the functionality of ARGUS in Excel (with certain constraints) - including support for Loss to Lease, Concessions & Free Rent, Absorption& Turnover Vacancy, Tenant Improvements, Leasing Commissions, Expense Reimbursements, General Vacancy, Percentage Rent, and more.
- Alternate Waterfall Schedule: You'll create a waterfall schedule with a Preferred and Catch-Up Return for different investor groups, and you'll understand how this factors into the investment recommendation.
Module 6: 2-Hour Pre-Sold Condo Development Modeling Test (Heritage Cyrela)
In this case study, you will build a condo development model for the Heritage Cyrela, a super-high-end luxury complex in São Paulo. You will then use the model to make investment recommendations for the Limited Partners and Developers and identify the key risk factors in the deal.
You’ll start by setting up the transaction assumptions and the construction timeline, including the monthly pre-sales of condo units in each phase and the start and end of the construction period.
Then, you’ll project Gross Sales based on initial, construction-end, and final deposits, and you’ll forecast the Hard Costs, Soft Costs, FF&E and Move-In Costs, and Land Acquisition Costs.
You’ll use this monthly cash flow model to project Equity and Debt draws, interest, and principal repayment, and then you’ll build a Waterfall Returns Schedule with a Preferred Return, Catch-Up Return, and tiers based on a mix of IRRs and equity multiples.
Finally, you’ll create an annual summary, Sources & Uses schedule, and sensitivity tables to summarize everything and answer the case study questions.
- 7 Step-by-Step Lessons: You will expand on the simplified condo development model from Module 1 and add additional phases and sales triggers, as well as a more complex Debt/Equity treatment. These video-based lessons walk you through the whole process.
- More Complex Waterfall: You will learn how to build a waterfall returns schedule with support for a Preferred Return to the 3rd Party Investors, followed by a Catch-Up Return to the Developers, followed by cash flow splits that are based on a mix of IRRs and equity multiples - and you will do all this on a monthly basis.
Module 7: 4-Hour (or 1-Week) REIT Valuation Modeling Test (AvalonBay)
In this case study, you will build a 3-statement model and valuation for AvalonBay, a leading U.S.-based multifamily REIT. You will then use the model to create a hedge fund/asset management stock pitch, an equity research report, and an investment banking pitch book for the company.
You’ll start by projecting the company’s developments, redevelopments, acquisitions, dispositions, and unconsolidated real estate (equity investments), and you will use these segment-level projections to build a 3-statement projection model.
Then, you will value the company using a Net Asset Value (NAV) Model, Comparable Public Companies and Precedent Transactions, and a Discounted Cash Flow (DCF) Analysis based on a 10-year projection period. You’ll also get practice finding the data and adjusting the numbers based on disclosures in SEC filings.
You’ll then summarize the results of this valuation and use it to outline a stock pitch for the company, including the investment thesis, catalysts, risk factors, and ways to hedge against the main risks. Finally, you’ll tweak this pitch to create an equity research report and an investment banking pitch book with a debt vs. equity recommendation for the company’s financing requirements.
If you complete only the model here, it's a 4-hour case study. If you also draft the stock pitch and the other documents for a more in-depth exercise, it's closer to a 1-week case study.
- 20 Step-by-Step Lessons: Learn how to expand on the REIT models from Module 1 and add additional operating assumptions, gather and adjust data for the comparables, and support multiple scenarios; you'll also learn how to handle JVs and Equity Investments and how a more complex NAV Model works. These videos explain the entire process.
- Hedge Fund Stock Pitch: You'll learn how to outline and draft a short stock pitch in both written (Word) and slide (PowerPoint) format, and you'll understand how to craft an investment thesis and research catalysts, risk factors, and ways to mitigate the risk for REITs.
- Equity Research Report: You’ll learn how to tweak the stock pitch to create an equity research report that presents similar ideas, but changes the tone, focus, and presentation for use in a different context.
- Investment Banking Pitch Book: You'll learn how to make a Debt vs. Equity recommendation for AvalonBay, and you’ll get an example of a short pitch book presentation you can use to present your findings and argue for a different financing mix.
Module 8: 2-Hour REIT Debt vs. Equity Case Study (SPH REIT)
In this case study, you’ll project the performance of individual properties for SPH REIT, a Singaporean retail REIT, on a half-year basis, and you’ll create a 3-statement model that supports the S$ 500 million acquisition of Seletar Mall, a new property, using Equity and Debt.
You will create Base, Downside, and Extreme Downside Cases based on market data, and you’ll use the different Rental Reversions, NPI Margins, and Cap Rates in those cases to assess the company’s credit stats and ratios (Gearing, Debt / EBITDA, EBITDA / Interest, and others).
Then, you’ll try different combinations of Debt and Equity until you find one that allows the company to achieve its targeted metrics and ratios (Distribution Yield > 5%, DPU Accretion >= 0%, Gearing <= 35%, and Interest Coverage >= 5.0x) across all the cases.
Finally, you’ll answer case study questions at the end, present your recommendation, explain the key risk factors and how to mitigate them, and examine other ways the company could change its capital structure to meet its targets.
- 6 Step-by-Step Lessons: You'll learn how to create a half-year operating model for a REIT based on its individual properties, and how to incorporate scenarios and credit stats and ratios. These video-based lessons walk you through the whole process.
- Data Gathering Exercises: Unlike in some of the other case studies, which give you explicit numbers, here you'll have to review documents and market data and use your judgment to come up with appropriate growth rates, margins, and other assumptions; our tutorials explain this process.
Module 9: 3-Hour REIT M&A and Merger Model Case Study (Digital Realty / DuPont Fabros)
In this case study, you’ll complete a quarterly merger model and supplemental analysis for Digital Realty’s $5.8 billion acquisition of DuPont Fabros, and you’ll learn how purchase price allocation and the combination of the financial statements differ for REITs.
You’ll start by reviewing each company’s standalone quarterly projections and NAV models, and then you’ll set up the transaction assumptions, including the Sources & Uses and Purchase Price Allocation schedules, including new items such as Above- and Below-Market Lease Intangibles.
Then, you’ll combine and project the financial statements, calculate key metrics such as accretion/dilution for FFO and AFFO per unit & share, and analyze the credit profile of the combined entity.
Since most REIT M&A deals are 100% stock, the Contribution Analysis and Value Creation Analysis are especially important; you’ll complete both here and use them to draw conclusions about the deal terms, the seller’s valuation, and the potential risk factors in the deal.
Finally, you’ll answer the case study questions at the end, make a recommendation for or against the deal, and see how you might present your findings in a short presentation as well.
- 12 Step-by-Step Lessons: You'll learn how to build a full 3-statement merger model for REITs, including key differences vs. M&A deals for normal companies, and you'll add REIT-specific analysis and use the model to answer the case study questions.
- Contribution and Value Creation Analyses: You'll learn how to create REIT-specific analyses for M&A deals that are more meaningful than traditional accretion/dilution metrics, and you'll assess the deal based on these methodologies.
- Investment Banking Deal Recommendation Presentation: In the final lesson, you'll get an example of a short presentation you can use to recommend for or against the deal, and you'll learn how to use visual elements to strengthen your arguments.
Module 10: 2.5-Hour REIT Leveraged Buyout and LBO Model Case Study (Blackstone / Pure Industrial Real Estate Trust)
In this case study, you’ll analyze Blackstone’s $2.5 billion CAD leveraged buyout of Pure Industrial Real Estate Trust (PIRET) in Canada and make an investment recommendation for or against the deal.
You’ll start by learning about the key differences in REIT leveraged buyouts, and then you’ll set up the transaction assumptions, scenarios and drivers for the REIT’s same-store, acquisition, development, and disposition activity, and the full financial statement projections.
Then, you’ll add the Debt Schedule, examine the credit stats and ratios, and calculate the returns to all investor groups, including a management rollover, options pool, and multiple-based incentive fee for Ivanhoé Cambridge (the other equity investor in the deal).
Finally, you’ll set up sensitivity tables and use them to answer the case study questions and make an investment recommendation. The final, optional lesson will show you how to draft a 10-slide presentation with your findings.
- 11 Step-by-Step Lessons: These video tutorials will walk you through the process of building an LBO model for a REIT, including how to include operational scenarios and modify the normal Dividend and Debt/Equity assumptions.
- Alternate Returns Calculations: You'll learn how to link the exit multiples to prevailing Cap Rates, and how to factor in continual Dividends, a Management Options Pool, a Management Rollover, and an Incentive Fee for Ivanhoé Cambridge.
- Investment Recommendation Presentation: The final lesson here gives you an example of an investment recommendation presentation you can use and re-use in other LBO case studies and private equity interviews.
Module 11: Certification Quiz
In this final module, you can test your knowledge of the course material with a 60-question certification quiz testing all the topics and case studies above.
These questions are challenging, so you will almost certainly need to attempt this quiz multiple times to pass it. You can review your incorrect answers and go back to review the appropriate material, as needed.
Once you pass the quiz with a score of at least 90%, you will receive a Certificate that you can add to your resume/CV and LinkedIn profile..
Can I See Samples of the Lessons
and Video Tutorials in the Course,
for Both Properties and REITs?
The videos below demonstrate exactly the caliber of content and style of instruction you'll get after you sign up (click the links to get larger versions and the accompanying Excel files and PDFs):
In this sample video from our simplified 90-minute industrial development case study in Module 1 of the course, you'll learn how to set up a 3-tier waterfall returns schedule for the Developers and Limited Partners:
Real Estate Waterfall Model Returns - Large Version and All Excel and PDF Files.
In this sample video from our 4-hour office/retail acquisition & renovation case study, you'll learn how to project items like the free months of rent, absorption & turnover vacancy, tenant improvements, and expense reimbursements:
Real Estate Concessions, Vacancies, and Expense Reimbursements - Large Version and All Excel and PDF Files.
In this sample video from our 4-hour REIT valuation case study based on AvalonBay, you'll learn how to set up a NAV Model and re-value the company's Assets based on prevailing Market Cap Rates and information from other schedules in the model:
REIT NAV Model - Large Version and All Excel and PDF Files.
Just 1 Payment of $497
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So, What’s Your Investment in theReal Estate Financial Modeling course?
To put this in context, let's consider your Return on Investment in this course...
The pay for investment banking jobs varies from year to year, but it's safe to say that even entry-level Analysts would make at least $140,000 – $160,000 USD right out of university.
At the MBA level, that climbs to $200,000 – $250,000 USD. And as you progress, your salary only gets higher and higher.
Compensation at commercial real estate (CRE) firms and CRE lending firms is lower, but it’s still at least $80,000 – $90,000 total at the entry level, rising to $175,000 – $300,000 in the mid-levels.
And in real estate private equity, you start in the $100,000 – $200,000 range and move up to the $500,000 – $1 million range at the upper levels.
By investing in this specialized program, you're doing several things at the same time:
- Gaining extremely specialized knowledge in a field in which there is always high demand for people who know what they're doing.
- Learning practical, real-world skills you can apply right now. No other Real Estate Modeling course on the planet has tutorials on stock pitches, equity research reports, and investment banking pitch books, or on how to draft investment recommendations for property deals, highlight the risk factors, and explain how to mitigate them.
- Differentiating yourself from other finance and real estate professionals and students at top schools – even those with the best academic pedigrees and the highest GPAs.
- Proving beyond a doubt to current or potential employers that you're prepared to go "above and beyond" to be the best and get results... in other words, you're exactly the type of person that banks, private equity firms, and real estate firms love to hire, reward, and promote.
So, the value you stand to receive is substantial.
And your investment? Just $497 for the entire program.
With this very modest investment, you're setting yourself up for a job that pays a minimum of $80,000, and more realistically, a minimum of $100,000 – which represents a 160x to 200x return on investment (Good luck getting that in the stock market!).
Or, another way to look at it is that with this course, you're acquiring highly specialized skills for which there is a ton of demand, but very limited supply... and that can only be a good thing for you.
Just 1 Payment of $497
100% Unconditional Money-Back Guarantee
Our 90-Day "Total Delight" Money-Back Guarantee Makes This Course Risk-Free for You
And just in case you're not totally convinced this course is for you, rest assured that you're covered by our risk-free 90-Day Money-Back Guarantee:
That's right – take a full 90 days to evaluate everything inside the Course, and if you’re not 100% satisfied, simply contact us via the "Contact" link displayed on every page of the site and ask for your money back.
You’ll receive a prompt and courteous refund, usually within one business day.
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