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The Advanced Real Estate Pro Forma Modeling Master Class

The Complete Guide To Creating An Institutional-Quality Commercial Real Estate Pro Forma Model From Scratch In Excel

4.77 (261 reviews)

Students

14.5 hours

Content

Jun 2021

Last Update
Regular Price

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What you will learn

Learn how to build dynamic, institutional-grade commercial real estate pro forma investment models from scratch for office, industrial, and retail properties

Learn how to model commercial lease structures and reimbursements all in Excel (without expensive software)

Learn how to create institutional, professionally formatted commercial real estate pro forma models to present to investors and partners


Description

Want to learn how to build professional, dynamic, institutional-quality commercial real estate pro forma models from scratch for office, retail, and industrial properties in Microsoft Excel? 

This course will take you by the hand and walk you step-by-step through the entire process of building a complete, dynamic, eight-tab commercial real estate pro forma model, starting with a blank Excel workbook ending with a complete commercial real estate pro forma acquisition model that YOU'VE created, from scratch

When I was first learning real estate financial modeling, I would download real estate investment models or real estate investment calculators on the internet, only to feel overwhelmed and frustrated by the complex functions and formulas everywhere in the Excel file. And once I felt like I was getting used to one of these things, I still was petrified to touch or change anything because I didn't want to "break" the model. And honestly, even if I understood it and I believed the model was working correctly, I still had no idea if I could even trust the calculations in the first place. 

If you've ever felt any of these things, this course will pull back the curtain and uncover the "Black Box" that most real estate financial models appear to be. By the end of this course, you'll be able to build a dynamic, professional-quality commercial real estate pro forma model from scratch, and by the time you finish the last lecture, you'll have an institutional-quality model that you've built from start to finish.

This course will teach you how to build a commercial real estate pro forma investment model the way the largest and most sophisticated private equity real estate firms look at deals. At the end of this course, you will be able to:

  • Build an institutional-quality, dynamic commercial real estate pro forma investment model for office, retail, and industrial properties from scratch (without expensive software)

  • Model advanced real estate financing structures like mezzanine debt, future funding for renovation projects, prepayment penalties, dynamic loan sizing based on multiple constraints, and more.

  • Create a dynamic sources and uses table that tracks equity investments throughout the project, so you'll know exactly how much you'll need to fund a deal up-front

  • Build dynamic working capital accounts to automatically fund operating shortfalls to prevent unexpected equity "capital calls" to investors

  • Model complex commercial real estate lease structures in Excel including NNN, FSG, MG, and BYS reimbursement structures, custom rent escalation schedules, percentage rent, and more

  • Create dynamic re-leasing scenarios based on renewal probability and re-leasing assumptions to create future lease cash flows on autopilot

  • Model investor distributions on a monthly, quarterly, and annual basis and be able to switch between the three options quickly and easily

  • Create custom charts and graphs that automatically populate in your model, that you can use to present more clearly and professionally to investors, lenders, and partners

  • Build formula "checks" to error-proof your work and feel confident your calculations are accurate and can be trusted

This course is perfect for you if:

  • You're a college student or graduate student looking to break into real estate investment after graduation, and you're looking to add the key technical skill sets to your arsenal that will put you head and shoulders above the competition and allow you to land a lucrative career opportunity in the field

  • You're an existing real estate professional looking to advance your career, increase your compensation, and break into the real estate investment industry.

  • You've have a basic understanding of real estate finance and financial modeling, and you're looking to take your real estate financial modeling skill set to an expert level to land a better job, make more money, or do more profitable real estate deals.

Here's what our students have had to say:

★★★★★ "This course really has it all. I model deals for experienced private equity real estate investors, and the principals I work for had never used a proforma as dynamic, versatile, and visually appealing as this model. If you need to analyze a commercial deal you should absolutely take the time to work through this course. Thanks, Justin! Already looking forward to the next course."

★★★★★ "Best class I've taken, truly builds a phenomenal model with institutional quality complexity. Take this class!"

★★★★★ "Amazing, above expectations!"

If you have a solid understanding of real estate finance, and you're looking to apply that knowledge to analyze commercial real estate investment opportunities, enroll now and let's get started building this model together today. Looking forward to having you in the course!


Screenshots

The Advanced Real Estate Pro Forma Modeling Master Class
The Advanced Real Estate Pro Forma Modeling Master Class
The Advanced Real Estate Pro Forma Modeling Master Class
The Advanced Real Estate Pro Forma Modeling Master Class

Content

Introduction

Introduction

A Sneak Peek Into What You'll Build

Who This Course Is For

About This Course & Student Success Stories

Key Terms & Definitions Cheat Sheet

Disclaimer

The Advanced Real Estate Pro Forma Model

The 8 CRE Pro Forma Model Tabs

Building Out The Summary Dashboard

Modeling Dynamic Commercial Real Estate Leases

Modeling CRE Operating Expenses

Building Out The Monthly Cash Flow Statement

Modeling The Annual Cash Flow "Roll-Up"

Building Out The Financing Tab

Construction Budget Modeling & Automatic "Checks"

Advanced Real Estate Pro Forma Modeling Fundamentals

How To Get The Most Out Of This Course

Excel Financial Modeling Best Practices & Color Coding

Removing Gridlines

The Entire Sheet Formatting Trick

Workbook & Iterative Calculations

Advanced Excel Settings

Downloading Macros (Optional)

Part 1 - Building Out The Summary Dashboard

Building Out The Property Details

Formatting The Property Details

Building Out Parking Information

Modeling Key Acquisition Inputs

Modeling Sale Information

Investor Distribution Frequency & Project-Level Fees

Building Out The Summary Details

The Capital Budget Breakdown

Sources & Uses - Part 1

Sources & Uses - Part 2

Building Out Unlevered & Levered Return Metrics

Modeling Sale Details & The Formula Build-Out

IRR Partitioning

Sensitivity Analysis Build-Out

Combining Dynamic Text Values

Creating Dynamic Hold Period Intervals

Sensitivity Analysis Finalization

The Consolidated Rent Roll

Modeling The Weighted Average Lease Term (WALT)

Model Download & Review

Part 2 - Dynamic Commercial Real Estate Lease Modeling

Building Out The CRE Leases Tab

In-Place Tenant Details

Formatting The In-Place Tenant Details

Building Out The Expense Reimbursement Structure

Modeling The Rent Escalation Schedule

Re-Leasing Assumptions

Re-Leasing Costs

Modeling Percentage Rent

Tenant Cash Flow Timeline Build-Out

Timeline Formatting & Tenant Set-Up

Modeling In-Place Base Rent

The In-Place Operating Expense Build-Out

Modeling In-Place Reimbursements

Modeling Percentage Rent

Percentage Rent Update

Modeling Up-Front Free Rent

Modeling Re-Leasing Base Rent

Modeling Re-Leasing Free Rent

Modeling Re-Leasing Reimbursements

Modeling Up-Front Tenant Improvements

Modeling Up-Front Leasing Commissions

Modeling Re-Leasing Tenant Improvements

Modeling Re-Leasing Leasing Commissions

Total Suite Cash Flow Finalization

Creating Additional Leases

Creating Additional Lease Cash Flows

Formatting & Pro Rata Share Calculations

Grouping Tenants

Model Download & Review

Part 3 - CRE Expense Modeling

Building Out The Expenses Tab

T-12 & Hold Period Operating Expense Modeling

Modeling Operating Expense Assumptions

Property Tax Information Inputs

Modeling Credit Loss & Property Tax Growth Rates

Property Tax Modeling

Monthly Expense Modeling & Formatting

Modeling Monthly Property Tax Cash Flows

Modeling Insurance

Modeling CAM & Other Expenses

Model Download & Review

Part 4 - Building Out The Monthly Cash Flows

Introduction To The Monthly Cash Flow Tab

Building Out The Monthly Cash Flow Timeline

Modeling Revenue & Free Rent

Modeling Credit Loss & Net Rental Income

Modeling CAM Reimbursements & Percentage Rent

Modeling Operating Expenses

Modeling TIs & LCs

Modeling Capital Reserves

Modeling Acquisition Information

Modeling Sale Information

Building Out The Loan Information Section

Model Download & Review

Part 5 - Modeling Advanced Financing Structures

Introduction To The Financing Tab

Creating The Loan Information Table

Building Out The Loan Metrics

Interest Rate Modeling

Loan Periods & Prepayment

Sizing The Acquisition Loan - LTV & LTC

Sizing The Acquisition Loan - DSCR

Sizing The Acquisition Loan - Debt Yield

Sizing The Mezzanine Loan - LTV & LTC

Sizing The Mezzanine Loan - DSCR & Debt Yield

Sizing The Refinance - LTV & LTC

Sizing The Refinance - DSCR & Debt Yield

The Acquisition Financing Build-Out

Dynamic Acquisition Loan Balance Modeling

Modeling Additional Loan Proceeds

Naming Cells For Faster Modeling

Chatham Forward Curves (Link)

Chatham Forward Curves

Building In The Floating Interest Rate Index

Creating Dynamic Fixed & Floating Interest Rates

Building Out The Total Loan Payment

Total Loan Payment Formula Update

Modeling Principal & Interest Payments

Modeling The Acquisition Loan Payoff & Prepayment Penalty

Creating Acquisition Financing "Checks"

Mezzanine Financing Build-Out

Modeling Mezzanine Debt Payments

Refinance Build-Out

Modeling Additional Refinance Loan Proceeds

Modeling Total Refinance Loan Payments

Modeling Refinance Principal & Interest Payments

Modeling The Refinance Loan Payoff & Prepayment Penalty

Total Payment Formula Update

SUMIF Trigger Build-Out

Model Download & Review

Part 6 - Creating A Dynamic Construction Budget

Introduction To The Construction Budget Tab

Building Out The Construction Budget Line Items

Construction Budget Costs & Timing

Straight-Line Construction Cost Modeling

Construction Budget Checks & Formatting

Construction Subtotals & MAX and MIN IF

Contingencies & CM Fees

Model Download & Review

Part 7 - Building Out The Monthly Cash Flow Tab Part 2

Modeling Management Fees & Construction Expenses

Partnership Expense Modeling & Acquisition/Refinance Loan Proceed Funding

How To Use SUMIFS To Model Additional Loan Proceeds

Building In Debt Service & Modeling The Loan Payoff

Modeling Loan Fees

Creating Dynamic Working Capital Funding

Investor Distribution Modeling - Part 1

Investor Distribution Modeling - Part 2

Investor Distribution Modeling - Part 3

Cash Flow SUM & Formatting Finalization

Model Download & Review

Part 8 - Creating The Annual Cash Flow "Roll-Up"

Introduction To The Annual CF Tab

The Annual Cash Flow "All-In-One" Formula

Modeling Unlevered Cash-on-Cash Returns

Modeling Levered Cash-on-Cash Returns

Model Download & Review

Part 9 - Dynamic Chart Creation & Finalizing The Advanced Pro Forma Model

Modeling Asset Management Fees

Property Tax Finalization - Dynamic Assessed Value Modeling

Modeling Tenant Health Ratio

Modeling DSCR, Debt Yield, & Total Cost

Capital Budget Modeling

Sources & Uses Finalization

Modeling Levered Return Metrics (IRR, Equity Multiple, & Cash-on-Cash Return)

Modeling Unlevered Return Metrics (IRR, Equity Multiple, & Cash-on-Cash Return)

Building Out The Property Sale Details

Building Out The Consolidated Rent Roll

Modeling In-Place Rent

Reimbursements & Lease Expirations

Partitioning The IRR - Part 1

Partitioning The IRR - Part 2

XNPV Formula Update

Creating The "IRR Partitioning" Chart

Creating The "Base Rent Makeup" Chart

Creating The "Dynamic Operating Metrics Over Time" Chart

Dynamic Operating Metric Cash Flow Build-Out - Part 1

Dynamic Operating Metric Cash Flow Build-Out - Part 2

The Dynamic Operating Metric Chart Build-Out

Creating The "DSCR Over Time" Chart - Part 1

Creating The "DSCR Over Time" Chart - Part 2

Running The Sensitivity Analysis

Creating The "Checks" Tab

Building Out The Model Checks & Conditional Formatting

How To Use What You've Built

Operating Shortfalls & IRR Partitioning Finalization

Model Update - Total Project Costs

Model Download & Review - We're Done!

Wrapping Up

Where To Go From Here

A Final Word

BONUS LECTURE: Udemy Student Bonus

BONUS LECTURE: Udemy Student Bonus


Reviews

L
Lorenzo4 October 2020

I've completed, repeated and continue to tweak these models that I've learned to build to great success. I have been able to work my way into more deals by way of additional value that I can bring to the table. These modelsl are far more sophisticated than what what many brokers and sponsors that I work with use and then bolster my relationships greatly.

S
Shabber15 July 2020

The course was extremely well planned, the instruction was very clear and precise, and the resulting model was top-notch.

M
Mitesh1 July 2020

Highly recommended for Property Professionals. The advanced model building skills will be a great help in looking at new deals going forward. The excel shortcuts are very valuable to speed up things and become more efficient at setting up models. Highly recommend this one!

M
Mitsu13 June 2020

Justin's teaching skill is so amazing and the way he's teaching is easy to absorb. Thank you for making this a great course for us.

S
Sam18 May 2020

This is beyond amazing! This course just increased my real estate knowledge and modelling finesse. And I would highly recommend it to any real estate professional.

R
Rochan29 April 2020

The author is great. The content should add a section on basic concepts on real estate finance and also a section on how to/checklist for due diligence. Thanks. Rochan

B
Brian8 April 2020

Justin does a great job of introducing commercial real estate concepts and making them stick. Great course for anyone underwriting net leased assets.

S
Shimon14 February 2020

Justin is a fantastic teacher who creates excellent courses for students of all levels. My real estate education has come from Justin's courses, starting with his crash course in CRE investing, to his financial modeling bootcamp, and now his advanced courses. The education I received here allowed my to land a job at a CRE firm, and I am constantly impressing my superiors with the skills I have learned from Justin. I highly recommend this course to anyone involved in CRE who wants to learn advanced financial modeling and the clearest and most understandable way. And if you have no experience yet in CRE, take Justin's other beginner courses, and then come back to this one. It will be well worth the investment.

G
Gift9 February 2020

No words can express my gratidute and the value I've gained from this. Thank you for sharing your knowledge Justin.

B
Bruno16 December 2019

An outstanding course, full of helpful content and materials, explained in a slowly and simple manner. Very very good.

S
Stefanos17 November 2019

It is actually what exactly I was looking for and this is to improve my RE financial modelling skills and build up a model from scratch. Well done !

R
Richard11 November 2019

Cheers Justin, another well put together model and in-depth excel skills. Was easy to follow and was well executed, the only difficulty are those formulas and how complex they are. I guess that just comes with practice and understanding. That will be my goal for now. Possibly a life cycle costing analysis of a commercial/retail block next? I am finding that more clients like to see the expenses they will occur once development is complete and how that can tie in with the return. Just a thought... Thanks again!

D
Daniel6 November 2019

The real estate modeling classes Justin teaches are wonderful. I teach CRE to university students and recommend to them to take these courses - the class does a fantastic job of blending real estate education with modeling skills.

J
Josh20 August 2019

Best class I've taken, truly builds a phenomenal model with institutional quality complexity. Take this class!

S
Sam11 August 2019

This course really has it all. I model deals for experienced private equity real estate investors, and the principals I work for had never used a proforma as dynamic, versatile, and visually appealing as this model. If you need to analyze a commercial deal you should absolutely take the time to work through this course. Thanks, Justin! Already looking forward to the next course.


Coupons

DateDiscountStatus
3/29/202185% OFFExpired

2382895

Udemy ID

5/24/2019

Course created date

9/30/2019

Course Indexed date
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