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

4.55 (576 reviews)
Udemy
platform
English
language
Real Estate
category
instructor
4,859
students
17 hours
content
Feb 2024
last update
$119.99
regular price

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, 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 automatically

  • 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 in your calculations

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 you're looking to take your real estate financial modeling skill set to an expert level to land a better job, make more money, and/or more confidently model and analyze your own 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 foundational 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!

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

Screenshots

The Advanced Real Estate Pro Forma Modeling Master Class - Screenshot_01The Advanced Real Estate Pro Forma Modeling Master Class - Screenshot_02The Advanced Real Estate Pro Forma Modeling Master Class - Screenshot_03The Advanced Real Estate Pro Forma Modeling Master Class - Screenshot_04

Reviews

Adam
June 13, 2023
The course provided some very advanced excel techniques which I would've never discovered from my own iterative approaches. A very insightful course, well worth a following.
Samuel
April 17, 2023
Really useful course. Expensive courses I've tried such as WSP lazily rely on argus outputs for modelling commercial leases. This is one of the few courses that shows you how to do it in excel!
Robert
December 6, 2022
Can't begin to say how helpful this class was. I've taken REFM and Breaking into Wallstreet, as well as Justin's entire course load of modeling classes. Justin's classes are by far the most sophisticated, and yet they are the easiest to learn because he's that great of an instructor. These classes gave me the knowledge & tools to go from a Government major with zero finance background to succeeding in my first CRE role as the senior analyst at a small investment/development shop. To anyone looking to break into CRE... just know that IT IS possible with these classes to easily transition into an analyst role, but for those without a business degree you'll have to NETWORK your a** off to get a job. Best of luck to all and thank you Justin, I owe you much more than just the cost of these classes.
Diego
November 4, 2022
It is a great course, but the corrections Justin makes at the end of the course are really confusing. I really followed step by step and suddenly last lecture changed a lot of the biggest formulas, making me just downloading the last excel copy he offered, and dropping my work.
Dimitri
September 30, 2022
This (for me anyway) was a challenging course. Very helpful and useful but (like anything worthwhile) requires one to put in the time and effort. This likely requires one to do certain parts of the course more than once for the info to make intuitive sense and really sink in.
Reinaldo
September 22, 2022
I work in CRE Private Equity as an asset manager. Your courses have given me some perspective on how the models are built. Thank you so much!
Fernando
June 9, 2022
Excellent course. Wasn't sure what I would take away from this course, but I am leaving with a lot. Challenging at times, but not impossible. Instruction was easy to follow. Would recommend to anyone and everyone.
Li
March 25, 2022
I wish I learnt all these whilst I was a younger analyst, would have made the entire journey alot less painful!
Greg.McClellan95@Gmail.Com
February 4, 2022
It is definitely challenging but building a model like this solo would have been 'impossible.' The background knowledge for other RE ideals/terms was also helpful.
Brian
December 12, 2021
I had COVID a while ago. After I recovered I could not remember how to manipulate and reuse my proformas.
Eric
July 20, 2021
The program is comprehensive and very detailed. It is structured in a way that it is very easy to revisit only the sections you need clarification without going over the whole course. Thank you Justine
Brad
July 14, 2021
Very good overall. For the complicated formulas it would be nice to have them written down to make it easy to check your work and maybe have an optional explanation of what's happening with the formula broken up so when you go back to it you can make changes.
Brendon
June 25, 2021
Being able to build these models and speak in detail around the formulas I used helped me immensely in PERE interviews.
Jesse
June 25, 2021
Fantastic Course. Fantastic Instructor. Very Responsive. Worth the $ at 10x the price, without question.
Charles
May 26, 2021
This has been an amazing experience to learn these skills to create a financial model that I can use in the real world.

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5/24/2019
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