Real Estate Acquisitions: Financial Modeling and Valuation

Beyond the house-flipper cable shows lies a rich world of institutional investors, large-scale companies — and careers. Learn how investment analysts throughout the various players in the real estate industry (investors, lenders, brokers, developers) evaluate, market, and transact on opportunities.

Live remote instruction
Real world exercises
Industry experts
One-on-one mentorship
Alex O'Connor
Real Estate

Experience:

 What is real estate? To some, not more than the roof over their head. To knowledgeable investors it’s a claim to future cash flows and a crucial component of their portfolio, rife with unique tax advantages.

The real estate development and investment industry is a dynamic field that incorporates a wide variety of disciplines including finance, design, marketing, legal, and engineering. This course prepares students with the contextual and practical knowledge necessary to perform financial analyst work in a variety of real estate applications.

The course begins with a broad overview of the space market, the asset market, and the players across that spectrum. Essential real estate finance concepts relevant to investment analysis and asset management are covered using real-world examples.

After cementing that foundation, we begin a deep dive into Argus Enterprise, the key cash flow projection software used across the industry and an invaluable resume credential. This specialized software is ubiquitous within virtually every segment of the real estate business including equity investment, lending, development, and asset management.

By working through a number of previously marketed acquisition opportunities, students learn how to evaluate risks and opportunities, determine the major value drivers, and arrive at an appropriate valuation.

Finally, we cover the investment thesis and financial merits, both fundamental features of the investment memoranda, the document that drives institutional investment.  An overview of the key negotiation points in common transaction documents completes the final step in the deal process.

What are you going to learn?

  • The components of the real estate system including the space market, asset market, and the relationship between the two
  • Understand the motivations of various debt and equity capital providers and their role in real estate finance
  • How to build dynamic valuation models in Excel, including sensitivity analyses
  • How to analyze the risk profile of investment opportunities and arrive at the appropriate valuation
  • How to create and audit Argus Enterprise models-the key specialized software used across the commercial real estate industry
  • Communicate the strengths and weaknesses of real estate investment opportunities and their underlying financial projections
  • How to perform the due diligence expected by institutional investors
  • Understand key negotiation points in common legal documents including Purchase and Sale Agreements, Joint Venture Agreements, and Loan Agreements

Foundational Concepts

  • Real estate as an investment
  • The space market
  • The asset market
  • Time value of money
  • Measuring investment performance
  • Leasing dynamics
  • Real estate debt

Core Skills

  • Excel shortcuts and formatting
  • Excel functions:
    • NPV/PV
    • IRR
    • PMT
    • NPER
  • Excel Goal Seek functionality

Argus Cash Flow Modeling

  • Revenues
  • Expenses
  • Capital expenditures

Valuation

  • Building a dynamic financial model in Excel
  • Risk-reward spectrum
  • Factors affecting cap rates
  • Exit assumption considerations

Due Diligence

  • Escalation workbooks
  • Operating budget
  • Historical financial statements
  • Property condition reports
  • Environmental site assessments
  • Measurement study
  • Lease abstracts

Investment Memoranda

  • Information to include
  • Sensitivities

Key Legal Negotiation Points

  • Purchase and sale agreements
  • Joint venture agreements
  • Loan agreements

Career paths

  • Organizational structures
  • Entry-level roles
$1,795
$2,450 if you apply before Nov. 10
$150 tuition rebate per student that you refer — and they get $150 off their tuition, too.
APPLY NOW
$ 2,950.00 USD
Duration: 
6 weeks
Upcoming start dates:
November 30, 2020
December 7, 2020
December 14, 2020
December 28, 2020
January 4, 2021
Time requirements:
2 weeks live instruction + 4 weeks group project
Exact schedule will vary slightly around holidays.
Resume preparation:
  • Live project for corporate sponsor
  • Alpha Fellowship resume editing & LinkedIn profile review

About the Course

 What is real estate? To some, not more than the roof over their head. To knowledgeable investors it’s a claim to future cash flows and a crucial component of their portfolio, rife with unique tax advantages.

The real estate development and investment industry is a dynamic field that incorporates a wide variety of disciplines including finance, design, marketing, legal, and engineering. This course prepares students with the contextual and practical knowledge necessary to perform financial analyst work in a variety of real estate applications.

The course begins with a broad overview of the space market, the asset market, and the players across that spectrum. Essential real estate finance concepts relevant to investment analysis and asset management are covered using real-world examples.

After cementing that foundation, we begin a deep dive into Argus Enterprise, the key cash flow projection software used across the industry and an invaluable resume credential. This specialized software is ubiquitous within virtually every segment of the real estate business including equity investment, lending, development, and asset management.

By working through a number of previously marketed acquisition opportunities, students learn how to evaluate risks and opportunities, determine the major value drivers, and arrive at an appropriate valuation.

Finally, we cover the investment thesis and financial merits, both fundamental features of the investment memoranda, the document that drives institutional investment.  An overview of the key negotiation points in common transaction documents completes the final step in the deal process.

What are you going to learn?

  • The components of the real estate system including the space market, asset market, and the relationship between the two
  • Understand the motivations of various debt and equity capital providers and their role in real estate finance
  • How to build dynamic valuation models in Excel, including sensitivity analyses
  • How to analyze the risk profile of investment opportunities and arrive at the appropriate valuation
  • How to create and audit Argus Enterprise models-the key specialized software used across the commercial real estate industry
  • Communicate the strengths and weaknesses of real estate investment opportunities and their underlying financial projections
  • How to perform the due diligence expected by institutional investors
  • Understand key negotiation points in common legal documents including Purchase and Sale Agreements, Joint Venture Agreements, and Loan Agreements

Our courses include live projects and guest speakers from companies such as

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