Description
This Course Is For You If You Want To
This is a good fit if you want to:
- Understand the purpose of the pro forma used in the commercial real estate business
- Gain exposure to the component parts of the typical development and acquisition pro forma
- Learn best practices for modeling in Excel, including when you are inheriting a model from someone else
Details
In this course, you will learn how to break down the real estate pro forma (financial projection model) into its essential components, analyze the pieces individually in easy-to-understand language, and then re-assemble them into the original whole. The relationships between the constituent parts are explained so that you will intimately understand the entire spreadsheet and its various functions.
- The purpose of the pro forma
- Commercial real estate transaction flow
- The importance of timing in financial modeling
- The Time Value of Money / Discounted Cash Flow (DCF) Model
- Different transaction types represented in pro forma
- Ground-up development transaction pro forma components
- Acquisition transaction pro forma components
- “Cardinal rules” of financial modeling
- Best practices when inheriting a model from someone else
This is a slide presentation course with an associated multiple choice quiz. You will watch the video and, if you choose, complete the quiz and review the answers given when the quiz is automatically graded.
The video running time is 49 minutes. Watching all the video (replaying parts where desired) and completing the quiz and reviewing the answers will take approximately 55 to 65 minutes, depending on the individual.
Through the direct experience of REFM’s principals in commercial real estate transactions, and REFM’s ongoing consulting to industry practitioners across the U.S. for the last decade, we have developed and have continually refined “The REFM Way” of teaching general commercial real estate principles and the specific practice of financial modeling.
To enhance your learning and help you to efficiently build a practical knowledge base, we:
- Always set the stage by providing the big picture first
- Speak in plain language and define industry terms on an ongoing basis
- Draw with “ink” on the slides to help you follow the lesson and grasp important points
- Give you highly granular video chapter hyperlinks so you can find what you want quickly and easily.
Upon successful completion of this course, you will:
- Have gained an understanding of the purpose and structure of the CRE pro forma
- Have learned about the major component parts and how they impact one another
- Have an appreciation for the importance of accuracy and carefulness when working in a pro forma.
What You Get
Lifetime online access to:
- An easily-navigated 49-minute video tutorial with playback controls up to 2x speed. Videos have captions available and are playable on any device including PC, Mac, phones and tablets.
- PDF file of the 49 slides presented in the video
- 10-question quiz (multiple-choice, automatically graded) and answer key.
Meet Your Instructor
Since 2009, top companies and educational institutions have trusted REFM to train thousands of their employees and students.
New to REFM training?
Clients Include
Clients Include
Amherst
ASB Capital Management
Barings
BentallGreenOak
BrightSpire
Brixmor
Brookfield
CapitalOne
CBRE Global Investors
CCRE
Centennial Bank
Citibank
ColonyNorthstar
Conrex
CPPIB
CRC Companies
CreditSuisse
Crescent Communities
Crow Holdings
DDG
DLA Piper
Greystar
GTIS Partners
Hodes Weill & Associates
Houlihan Lokey
Howard Hughes
Jamestown
JBG Smith
JPMorganChase
Kennedy Wilson
Link Logistics
LivCor
Lubert-Adler
Macys
Oxford Properties
Park Hill
Peterson Companies
PGIM
PN Hoffman
Prometheus
QuadReal
Related
Revantage
SEO
Skanska USA
Square Mile Capital
USAA Real Estate
Asset Living
CBRE Global Investors
Clark Enterprises
Comstock Homes
Conor Commercial
Crescent Communities
Federal City Property
Flournoy
Four Seasons
Grosvenor
GTIS Partners
Hines
Hoffman
Howard Hughes
HPET
Hunt Companies
Insight Property Group
Kettler
LaSalle Investment
MadisonMarquette
Markwood
Mesa Capital
Midway
Miller Valentine
Panoramic Interests
PEG Development
Renaissance Downtowns
Rockefeller Group
Skanska USA
Snavely Group
Trammell Crow Residential
Trion Properties
Vornado
Video Chapter Markers
- Overview
- Agenda
- Framework of analysis
- Commercial real estate transaction flow
- What is financial modeling?
- A pro forma is a projection model
- Pro forma fundamentals
- Importance of timing
- Time value of money / Discounted cash flow model
- Transaction types
- Pro forma overview – apartment ground-up development
- Tab overview – apartment ground-up development
- Assumptions tab: building profile
- Assumptions tab: timing elements
- Assumptions tab: uses of funds
- Assumptions tab: sources of funds
- Assumptions tab: cash flow elements
- Assumptions tab: re-financing assumptions
- Assumptions tab: sale assumptions and returns reporting
- Unit mix details tab
- Sources and uses of funds tab
- Cash flow tab part 1
- Cash flow tab part 2
- Review
- Commonly-used formulas
- Pro forma components – income-producing property acquisition
- Pro forma overview – apartment building acquisition
- Assumptions tab: uses and sources
- Assumptions tab: sale assumptions and returns reporting
- Rent roll tab
- Historical and projections cash flow tab
- Levered cash flows
- Review
- Cardinal rules of financial modeling
- Best practices for inheriting a model.
