Real Estate Developer (Financial Modelling in Excel)

Day One
Learn how to build a discounted cash flow, analyse returns and understand the components of development models
Part A (morning)

Introduction to Excel
Annual discounted cash flow modelling
Cash flow input selection
Analysis & use of date series
Internal Rate of Return (IRR) and Net Present Value (NPV)
Comparing Value, price and worth
Quarterly cash flow modelling
Part B (afternoon)

Borrowing and analysing geared returns
Introducing events into cashflows
Logic functions(IF, OR, AND)
Analysing the IRR for errors (Data tables, Charting)
Introduction to the Development model
Development cash flows versus Investment cash flows


Day Two
Learn how to build a detailed property development project cash flow, add financing and perform risk analysis on commercial development projects

Part C (morning)

Purchase price and acquisition costs
Phased Sales, marketing and disposal costs
Fixed construction costs, variable and incidental costs, construction fees
Professional fees
Income and expenditure project functions
Logic functions, logic tables and array formulae
Part D (afternoon)

Multiple IRRs, competing projects, scoping and linear programming, maximum performance
Return metrics
Equity profit ratio (EPR), Costs paid out of proceeds (POP), Profit on cost ratio (PCR)
Alternative site calculation, Net present value (NPV), Target equity profit ratio (EPR)
Debt Finance, LTV, Interest cover and front fees
Debt scheduling: brought forward and carried forward method

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