The Real Estate Development Modeling Master Class

The Complete Guide To Building Real Estate Development Pro Forma Models From Scratch For Smarter Real Estate Investing

4.83 (1711 reviews)
Udemy
platform
English
language
Real Estate
category
instructor
8,986
students
10 hours
content
Feb 2024
last update
$124.99
regular price

What you will learn

Learn how to build dynamic, institutional-grade real estate development models from scratch

Learn how to build out S-Curve construction models, equity and construction loan draw funding, and dynamic lease-up modeling for new development deals

Learn how to create institutional, professionally formatted models to present development pro forma calculations to investors and partners

Description

Want to learn how to build professional, dynamic, institutional-quality real estate development models in Microsoft Excel? This course will take you by the hand and walk you step-by-step through the entire process. This is a project-based course, meaning you'll start with a blank Excel workbook and walk away with a fully-functional, dynamic, eight-tab real estate development 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 real estate development model from scratch, and your first one will be done by the time you finish the last lecture.

This course will teach you how to build a real estate development 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 real estate development model from scratch

  • Learn key Excel shortcuts to double your real estate financial modeling speed

  • Modify and customize existing real estate development models to fit your specific investment scenario and needs

  • Confidently model key investment metrics such as the Stabilized Return on Cost, IRR, and Equity Multiple, and calculate these metrics automatically as you change manual input drivers

  • Build a dynamic construction budget (including S-Curve functionality)

  • Model dynamic lease-up revenue and expenses that change automatically as construction timelines change

  • Build out floating rate construction loan draws, dynamic equity draws, and permanent take-out financing to accurately model any financing structure

  • Build formula "checks" to error-proof your work and feel confident your calculations are correct

This course is perfect for you if:

  • You're a college student or graduate student looking to break into real estate development 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 a professional in a different field, but looking to become a real real estate developer on the side and want to be able to confidently analyze a ground-up development deal 

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

  • You've bought rental homes or duplexes, and now you're looking to become a real estate developer and want to feel confident in your ability to analyze new ground-up construction projects

Here's what some of our students have had to say:

★★★★★ "I have taken other RE Development courses and they were over-complicated and hard to follow, this course was just the opposite. As with all his other courses, Justin delivers a clear and easy to follow lesson, making him easily the best Real Estate modeling instructor on the internet. I honestly bought this course within 3 minutes of its release, and it was worth every penny.” 

★★★★★ "I've been in CRE valuation, investment sales brokerage, and realty capital for over 30 years, and I've never taken a class with this much detailed content. Justin not only crushes this course, but more importantly pulls back the curtain on how institutional investors view and model their deals. You'd have to work at an institutional PE or CRE firm for years to learn what he is offering here. It's not an easy walk but if one can master this content, you can size and model anything in the CRE universe. Congrats, Justin - job well done!"

★★★★★ "Another flagship course by Justin! First, it's all about the thoroughness of the course design (takes me step-by-step). Second, and more importantly, Justin keeps the communications going with his students. I am experiencing this myself and you could verify this by how many I post in the Q&A section, and how many got answered. I don't get this treatment often."

★★★★★ "Something that I've been looking for for a long time! I feel like I understand how to approach almost any RE modeling going forward."

★★★★★ "I've taken several real estate financial modeling courses to improve my skill level for my job. This is by far the best I have taken. Everything is taught step by step with clear instruction and explanations of formulas."

★★★★★ "Another great course taught by Justin, this was filled with many in depth excel modeling techniques to implement when forming a development model. Trying to break into CRE finance/ development can be tough and these skills can really give you an upper hand on the competition. Thanks!!"

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

Content

Introduction

Introduction
What We Will Cover
The Development Model Outline - Part 1
The Development Model Outline - Part 2
The Development Model Outline - Part 3
The Development Model Outline - Part 4
How To Take This Course
About The Instructor & This Course
Disclaimer

Real Estate Development Fundamentals

The Six Key Steps To The Development Process
S-Curve Construction Cost Modeling
Development Debt & Equity Financing

The Development Pro Forma Modeling Framework

The Real Estate Pro Forma Assembly Line
The Building Blocks of a Development Model
Dynamism In Development Modeling
Monthly Cash Flows vs. Annual Cash Flows For Development Deals
Error-Checking & Excel Best Practices
Development Model Color Coding
How To Design Your Development Model
Development Modeling Excel Hot Keys + Shortcuts Cheat Sheet

Part 1 - Building Out The Summary Tab

Gridlines & The Steak Sauce Cell
Building Out The Property Details Table
Lease-Up Modeling
Modeling Land Acquisition Metrics
Building Out Construction Loan Terms
Building Out Permanent Financing Terms
Total Cost Detailing
Sale Details & Key Return Metrics
Development Sources & Uses
Table Formatting
Downloading Macros (Optional)
Custom Formatting & The Lease-Up Period Build-Out
Land Acquisition Information
Construction Loan Information
Permanent (Take-Out) Loan Metrics
Summary Tab (Initial) Finalization
Check-In - How's It Going?

Part 2 - Building Out The Revenue Tab

Building Out The Unit Mix
Calculating Weighted Average Rents Using SUMPRODUCT
Building Out Stabilized Other Income
Annual Vacancy & Market Rent Growth Assumptions
Axiometrics & CoStar
Month & Year Revenue Timing
Stabilized Rent Growth With Varying Annual Growth Rates
How To Model A Multifamily Lease-Up
Calculating Lease-Up Rental Revenue
Modeling Stabilized Other Income
Modeling Lease-Up Other Income
Check-In - Two Tabs Down

Part 3 - Building Out The Expenses Tab

Building Out Stabilized Expenses
Modeling Expenses Per Unit & Totals
Fixed vs. Variable Expense Modeling
Expense Growth, CapEx Reserves, and PM Fees
Dynamic Annual Property Tax Growth Rates
How To Model Dynamic Annual Property Taxes
Property Tax Reversion Resets & Excel Binary Format Modeling
Modeling Lease-Up Expense Timing
Modeling Stabilized Monthly Operating Expenses
Modeling Variable Monthly Operating Expenses
Check-In - Tab Three In The Books

Part 4 - Building Out The Construction Budget Tab

The Hard Cost Build-Out
Hard Cost Line-Item Build-Out
Hard Cost Subtotals (MAX & MIN)
Dynamic Construction Cost Timing
S-Curve Construction Modeling
Building Out The S-Curve Formula
S-Curve Formula Breakdown
S-Curve Formula - Detail
Modeling Hard Cost Subtotals
Construction Cash Flow Error Checks & Conditional Formatting
Building Out The Soft Cost Schedule
Construction Contingency Modeling
Check-In - Construction Budget Tab Complete!

Part 5 - Building Out The Financing Tab

Debt & Equity Total Funding Checks
Debt & Equity Financing & EOMONTH
Modeling Construction Loan Operating Metrics
Operating Metrics Formatting
Equity Financing & Funding
Building Out The Construction Financing Cash Flows
Permanent (Take-Out) Financing Build-Out
LIBOR Forward Curve Modeling - Part 1
LIBOR Forward Curve Modeling - Part 2
Where To Pull Forward Curves (For Free)
Check-In - Financing Tab Build-Out

Part 6 - Building Out The Monthly Cash Flows Tab

Dynamic Monthly Cash Flow Timing
Modeling GPR
How To Model Physical Vacancy During A Lease-Up
Monthly Bad Debt, Concessions, & Other Loss
Modeling Total Other Income & EGR
Monthly Expense & Management Fee Modeling
Modeling Net Operating Income
Dynamic CapEx Reserve Growth
Modeling Construction Costs & CF Before Debt Service
Monthly Loan Payments & CF After Debt Service
Modeling Land Acquisition & Closing Costs
Dynamic Reversion Modeling
Setting Up The Loan Information
Calculating Reference Operating Cash Flows
Monthly CF Hold Period Totals
Enabling Iterative Calculation
Dynamic Property Tax Reversion Resets
Check-In - You're In The Home Stretch

Part 7 - Debt & Equity Financing Finalization

Modeling Operating Shortfalls & Freezing Panes
Positive Operating Cash Flow & Naming Cells
Modeling Development Sources & Uses
How To Model Dynamic Equity Funding
How To Model Construction Loan Draws
Modeling Monthly Floating Interest Rates
How To Model Capitalized Interest
Construction Loan Payoff Modeling
Debt & Equity Financing Checks
Modeling Take-Out Loan Timing
Take-Out Loan Sizing
Modeling Total Take-Out Loan Payments
Modeling Take-Out Principal & Interest Payments
Modeling The Take-Out Loan Payoff
Monthly CF Loan Draws & Permanent Loan Funding
Monthly CF Loan Payoffs & Levered Net Cash Flows
Modeling The IRR & Equity Multiple
Check-In - Debt & Equity Tab Complete

Part 8 - Building Out The Annual CF & Checks Tabs

Annual Cash Flow Timing
Modeling Annual Cash Flows (With One Formula)
The Refinance Check
The Construction Funding Check
The Cash Flow Check
Check-In - The Closer

Part 9 - Summary Tab Finalization

Finalizing The Property Details
DSCR & Debt Yield Modeling (Take-Out Loan)
Modeling Stabilized Return on Cost
Finalizing Sale Details & Return Metrics
Check-In - Done.

Addendum - Model Updates

Model Updates (& Revised Final Model Download)
All Model Inputs

Wrapping Up

How To Use This Information
Where To Go From Here

BONUS LECTURE: Udemy Student Bonus

BONUS LECTURE: Udemy Student Bonus

Screenshots

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Reviews

Naima
November 14, 2023
It it well explained, but course seems just focusing on leasing side of the property. What if the company wants to sell rather than Leasing
Antonio
September 29, 2023
As usual, Justin delivered a great course. You will learn how to build a model from scratch while also learning all the concepts associated with real estate development finance.
Sean
September 16, 2023
This is helping me better understand the financial lectures and exercises in my Master's of Land & Property Development program at Texas A&M. Great course.
Erik
September 12, 2023
This was a great course, I learned a ton about excel and it got me excited to analyze some real properties
Juan
August 8, 2023
I have been using real estate pro formas for years...this is the best concise and clear explanation of how to build one from scratch...this is what I have been missing!!! Thank you.
Federico
June 22, 2023
He lacks some explanation to the formulas he makes. He just reads them right from the excel description instead of explaining thoroughly how they work.
Tyler
April 25, 2023
Not a fan of the circuit breaker and the error in the model that are a result of the circular references. Overall, its a great course and definitely made for a high level Excel user. There are a lot of ways to get much more granular with this model to refine a definite deal but if you are a basic shop, this model will give you more than enough to analyze a deal.
Remi
April 20, 2023
Amazing class. Slower pace would be appreciated to give the student the time to build the sheets at the same pace as the instructor. But overall, this is great content. I will definitely use this tool on a daily basis.
Kyle
April 14, 2023
Fantastic course if you are a beginner/intermediate Analyst and are looking to advance in the industry.
Kyle
February 22, 2023
Beneficial course with extremely clear explanations as you go. Would highly recommend it to anyone who wants to take their modeling skills to the next level! Thank you, Justin!
Austin
January 11, 2023
Extremely informational. My basic excel skills got enhanced tenfold in this course and the proforma built has been super useful in helping us with our first large development project!
Byron
December 11, 2022
This course was expertly taught and very thorough and fun throughout. I learned so much and really built a new skill I can use in my day-to-day as a multi family real estate investor. Truly appreciated everything about the lectures and the instructor!
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.
Brandon
December 2, 2022
Great Instructor. Very clear in explaining the concept and terms. The examples are great and he takes his time. Excellent Teacher.
Kristopher
November 1, 2022
He breaks everything down step by step, I wish he would've covered the approval process first unless he has a separate course on that.

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2070459
udemy ID
12/6/2018
course created date
11/6/2019
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