COURSE DESCRIPTION
Advanced Concepts in Real Estate Financial Modeling is a supplemental bonus course offered as part of the Accelerator curriculum. This course is not required to earn an Accelerator Certificate of Completion, but instead is meant to teach concepts not directly addressed in the standard Accelerator curriculum but that you will likely use at some point in your career.
In this course you will:
- Learn to model floating (i.e. variable) rate debt
- Perform sophisticated real estate sensitivity and scenario analysis using Excel’s data table feature
- Model multiple tranches of capital sources, dynamic to order in which sources are deployed
- Learn a technique for modeling GP catch up provisions in equity waterfall modeling
- Learn a technique for modeling LP clawback provisions in equity waterfall modeling
- How to model quarterly and annual partnership distributions with monthly property-level cash flows
- Discover a variety of advanced formatting techniques for more user-friendly and intuitive real estate models
- Explore considerations in portfolio-level modeling
- Learn one method for modeling partnership crystallization (i.e. ownership reset) in equity waterfall modeling
- Model basic after-tax analysis, including the option to defer capital gains
- And much more
Additional tutorials are regularly added to this course based on your recommendations. So if there is a real estate financial modeling topic not covered in the standard Accelerator curriculum, and you’d like to see Spencer or Michael teach it, let us know in this course’s forum.
CASE STUDY – NA
Unlike standard Accelerator courses, this course does not have any specific case study. Nor are there quizzes or completion requirements. This course is a series of video (i.e. Watch Me Build) tutorials. Each tutorial includes a template Excel file for you to use to follow along, and a completed Excel file to see the answers.
PROPERTY TYPE
- All property types
SOFTWARE RECOMMENDED/REQUIRED
- While we recommend using Microsoft Excel, as that is the industry standard, this course will work with most other spreadsheet software such as Google Sheets and OpenOffice Calc
- This course was built using the Google Chrome browser, thus we recommend you use Google Chrome for optimal view experience
- This course is best taken on a desktop computer, although the platform is compatible with tablet and mobile devices
EXCEL PROFICIENCY REQUIREMENT
- The course assumes you’ve spent significant time in the Accelerator and have at least an intermediate proficiency in Excel
Curriculum
- 2 Sections
- 29 Lessons
- Lifetime
- Advanced Concepts - Property and Portfolio-LevelAdvanced tutorials (not required for Accelerator completion) related to property-level and portfolio-level cash flow modeling24
- 1.1Introduction to Advanced Concepts
- 1.2Modeling Floating (Variable) Rate Debt
- 1.3Real Estate Sensitivity Analysis Using a Data Table in Excel
- 1.4A Framework for Modeling Mixed-Use Investments
- 1.5Modeling Multiple Tranches of Capital Sources Dynamically
- 1.6Modeling a Construction Loan Takeout
- 1.7Add a Recalculate Button to Your Development Model to Avoid Circular References
- 1.8Considerations in Portfolio-Level Modeling
- 1.9Creating In-Cell Buttons, Toggles, and Navigation Buttons
- 1.10Ground Leases, Valuation, and Impact on Cash Flow
- 1.11Modeling Variability in Income and Expense Line Items
- 1.12Development Cash Flow: Creating a Steady Decrease Formula (Inverse to the Steady Growth Formula)
- 1.13Altering The Development Model For Pari Passu Coverage of Development Costs Between Debt and Equity
- 1.14Advanced Lender Risk Metrics – Duration and Average Life
- 1.15After-Tax Analysis in Real Estate (Coming Soon)
- 1.16Tax Credit Modeling (Coming Soon)
- 1.17Ground Leases, Valuation, and Impact on Cash Flow
- 1.18Modeling Variability in Income and Expense Line Items
- 1.19Development Cash Flow: Creating a Steady Decrease Formula (Inverse to the Steady Growth Formula)
- 1.20Altering The Development Model For Pari Passu Coverage of Development Costs Between Debt and Equity
- 1.21Dynamically Forecasting Development Cash Flows
- 1.22Advanced Lender Risk Metrics – Duration and Average Life
- 1.23Using Stochastic (Probabilistic) Analysis and Monte Carlo Simulations
- 1.24Mortgage Prepayment Fees, Including Yield Maintenance and Defeasance
- Advanced Concepts - Partnership-LevelAdvanced tutorials related to partnership-level (i.e. waterfall) cash flow modeling5
- 2.1Two Techniques for Modeling a GP Catch Up Provision
- 2.2One Technique for Modeling an LP Clawback Provisions
- 2.3Modeling Partnership Crystallization / Ownership Reset
- 2.4Modeling Annual Partnership Distributions with Monthly Property-Level Cash Flows
- 2.5Break Out Promote, Preferred Return, Excess Cash Flow, and Return of Capital Plus Separate Returns Before and After Fees
