Real Estate Financial Modeling
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Learn to Build a Real Estate Financial Model Step-By-Step
Get 20+ Hours of Video Content + Reusable Real Estate Excel Model Templates
Get lifetime access to step by step online video training as well as industry-grade reusable real estate excel templates for modeling acquisitions and developments for multifamily, office, retail, industrial properties, including JV & Waterfall Modeling.
Learn From Real Estate Practitioners
Led by real estate private equity expert Aaron Hancock, you'll not only learn modeling best practices across the different real estate property types, you'll learn how real estate investors actually evaluate opportunities.
Enhance Your Real Estate Credentials
Designed for professionals and students pursuing careers in real estate private equity as well as operators, developers, lenders, individual investors. Enrollment includes the option of sitting for the Real Estate Financial Modeling Certification. Those who successfully pass the exam can present their achievement on their resumes and LinkedIn (see below).
Who is This Program For?
This course is designed for individual investors as well as students and professionals pursuing careers in:
A 360° Real Estate Financial Modeling Program
This course begins with the foundations of real estate finance and excel best practices, adding complexity piece by piece. By the end of the program, learners will build complete, industrial grade multifamily, office, retail and industrial models, including in depth treatment of the modeling of revenues, operating expenses, capital improvements, debt, and joint venture waterfalls
- Real estate financial modeling best practices
- Real estate investment and development theory
- How to utilize historical financials to build a multifamily acquisition model
- How to utilize Argus outputs to build a commercial acquisition model
- How to build a real estate development model
- How to model a debt schedule
- How to model a joint venture waterfall
What's Included
Each module builds sequentially towards a complete understanding of the Real Estate model building process
Introduction to Real Estate Modeling
Section 1 of our Real Estate Financial Modeling Program. This course provides an introduction to the ...
1
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Course TOC
Introduction to Real Estate Modeling
Section 1 of our Real Estate Financial Modeling Program. This course provides an introduction to the function of real estate financial models, the challenges presented by bespoke approaches, and Wall Street Prep’s approach to teaching Real Estate Financial Modeling. We will begin with a review of ef ...
Section 1 of our Real Estate Financial Modeling Program. This course provides an introduction to the function of real estate financial models, the challenges presented by bespoke approaches, and Wall Street Prep’s approach to teaching Real Estate Financial Modeling. We will begin with a review of efficiency and formatting fundamentals that will be employed throughout the course. From there, we'll begin to develop an understanding of the different types of real estate models.
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Course Introduction
1. Course Introduction
3:29
Modeling Best Practices
2. Course Downloads
Files
3. Formatting Conventions
1:52
4. Working with Dates & Timelines
8:16
5. Modeling Best Practices Rules of Thumb
2:10
6. Modeling Best Practices Key Takeaways
0:23
Real Estate Modeling Basics
7. Real Estate Model Structure
10:14
8. Real Estate Model Types
2:03
9. Argus
2:53
Appendix: Excel Settings for Modeling
10. Excel Settings for Modeling
3:28
11. Excel for Mac Quick Setup
8:08
12. Keyboard Shortcuts
10:36
Operating Cash Flow
Section 2 of our Real Estate Financial Modeling Program. Real estate is all about cash flow. This mo ...
2
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Course TOC
Operating Cash Flow
Section 2 of our Real Estate Financial Modeling Program. Real estate is all about cash flow. This module will cover cash flow builds for multifamily and commercial property types. We will build the foundations of revenues and expenses and finish with a discussion on the importance of net operating i ...
Section 2 of our Real Estate Financial Modeling Program. Real estate is all about cash flow. This module will cover cash flow builds for multifamily and commercial property types. We will build the foundations of revenues and expenses and finish with a discussion on the importance of net operating income. Each section will begin with the characteristics underpinning the cash flow for the property type at hand. After detailed discussions of various revenue and expense methodologies, concepts will be crystalized with step-by-step modeling walkthroughs in Excel.
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Real Estate Finance 101
1. Operating Cash Flow Introduction
0:28
2. Course Downloads
Files
3. Tenants, Income, Expenses & Cash Flow
1:46
4. Property Types
3:37
5. Commercial Leases
4:15
Modeling Revenues: Multifamily
6. Multifamily Property Characteristics
2:26
7. Multifamily Revenue Build - Method 1
5:18
8. Multifamily Revenue Build - Method 2
3:01
9. Multifamily Revenue Build Comparison
0:49
10. Multifamily Revenue - Model Flow
1:11
11. Multifamily Revenue Build - Method 1 - Model Layout
2:42
12. Multifamily Revenue Build - Method 1 - Historical Financials
9:42
13. Multifamily Revenue Build - Method 1 -Trailing Performance
4:16
14. Multifamily Revenue Build - Method 1 - In-Place Income
2:03
15. Multifamily Revenue Build - Method 1 - Revenue Assumptions
2:44
16. Multifamily Revenue Build - Method 1 - Offensive Capital Expenditures
3:03
17. Multifamily Revenue Build - Method 1 - Tracking Units
7:01
18. Multifamily Revenue Build - Method 1 - Rental Income
2:04
19. Multifamily Revenue Build - Method 1 - Other Revenue
2:33
20. Multifamily Revenue Build - Method 1 - Total Income
2:27
21. Multifamily Revenue Build - Method 2 - Model Layout
3:40
22. Multifamily Revenue Build - Method 2 - Historical Financials
5:16
23. Multifamily Revenue Build - Method 2 -Trailing Performance
3:32
24. Multifamily Revenue Build - Method 2 - In-Place Income
2:44
25. Multifamily Revenue Build - Method 2 - Revenue Assumptions
5:38
26. Multifamily Revenue Build - Method 2 - Revenue Build Review
0:55
27. Multifamily Revenue Build - Method 2 - Tracking Units
7:05
28. Multifamily Revenue Build - Method 2 - Rental Income
4:17
29. Multifamily Revenue Build - Method 2 - Other Revenue
3:59
30. Multifamily Revenue Build - Method 2 - Total Income
2:23
31. Multifamily Revenues Key Takeaways
2:44
Modeling Revenues: Commercial
32. Commercial Property Introduction
0:07
33. Commercial Property Characteristics
1:47
34. Commercial Revenue Build
7:03
35. Commercial Revenue - Model Flow
1:47
36. Commercial Revenue - Model Layout
4:48
37. Argus Output Fundamentals
4:45
38. Commercial Revenues - Toggling & Combining Argus Outputs
5:24
39. Commercial Revenues - Populating the Model Tab
1:43
40. Occupancy & Rent Per Square Foot
2:27
41. Retail Percentage Rent
6:17
42. Commercial Revenues Key Takeaways
1:08
Modeling Expenses: Multifamily
43. Modeling Expenses Introduction
1:05
44. Multifamily Expense Build
1:33
45. Expense Line Items
7:50
46. Multifamily Expenses - Model Flow
0:56
47. Multifamily Expenses - Model Layout
1:47
48. Historical Financials
6:40
49. Trailing Performance
1:36
50. In-Place Operating Expenses
6:35
51. Expense Assumptions
0:58
52. Proforma Operating Expenses
4:57
53. Multifamily Expenses Key Takeaways
1:40
Modeling Expenses: Commercial
54. Introduction to Commercial Expenses
1:24
55. Commercial Expense Build
6:24
56. Industrial Expense Build
1:53
57. Commercial Expenses - Model Flow
1:04
58. Commercial Expenses - Model Layout
2:05
59. Commercial Expenses - Argus Output Tagging
5:49
60. Commercial Expenses - Toggling & Combining Argus Outputs
0:56
61. Commercial Expenses - Populating the Model Tab
3:01
62. Commercial Expenses Key Takeaways
1:11
Net Operating Income
63. Net Operating Income Introduction
0:27
64. Defining Net Operating Income
2:34
65. Net Operating Income & Cap Rates
10:01
66. Net Operating Income Takeaways
1:11
Quiz: Course Review
67. Real Estate Operating Cash Flow Quiz
Quiz
Non-Operating Cash Flow
Section 3 of our Real Estate Financial Modeling Program. Although real estate is valued based on ope ...
3
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Course TOC
Non-Operating Cash Flow
Section 3 of our Real Estate Financial Modeling Program. Although real estate is valued based on operating cash flow, non-operating cash flows are integral to business plans. This module will cover leasing costs for commercial properties, capital improvements and costs associated with buying and sel ...
Section 3 of our Real Estate Financial Modeling Program. Although real estate is valued based on operating cash flow, non-operating cash flows are integral to business plans. This module will cover leasing costs for commercial properties, capital improvements and costs associated with buying and selling a property. After detailed discussions of the various cost items within non-operating cash flow, the concepts will be reinforced with step-by-step modeling walkthroughs in Excel.
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Leasing Costs
1. Tenant Improvements
4:08
2. Course Downloads
Files
3. Leasing Commissions
1:42
4. Modeling Leasing Costs
1:28
5. A Note on Argus
0:40
6. Leasing Costs Key Takeaways
0:49
Capital Costs
7. Capital Expenditures
2:56
8. Capital Reserves
1:08
9. Capital Costs - Model Flow
1:01
10. Capital Costs - Model Layout
1:44
11. Modeling Capital Expenditures
7:54
12. Capital Costs Key Takeaways
1:18
Acquisition & Sale
13. Capital Costs Assumptions
1:52
14. Frictional Costs
6:22
15. Acquisition & Sale - Model Flow
1:06
16. Acquisition & Sale - Model Layout
1:34
17. Modeling Acquisition & Sale
10:20
18. Reversion
15:05
19. Modeling Reversion
12:14
20. Acquisition & Sale Key Takeaways
1:30
Unlevered Cash Flow
21. Defining Unlevered Cash Flow
3:10
22. Importance of Unlevered Cash Flow
0:33
Debt & Levered Cash Flow
Section 4 of our Real Estate Financial Modeling Program. Real estate is a highly levered asset class ...
4
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Course TOC
Debt & Levered Cash Flow
Section 4 of our Real Estate Financial Modeling Program. Real estate is a highly levered asset class and an understanding of leverage is critical for any real estate investor. This module will serve as a primer on real estate debt, covering everything from different ways to finance an acquisition, t ...
Section 4 of our Real Estate Financial Modeling Program. Real estate is a highly levered asset class and an understanding of leverage is critical for any real estate investor. This module will serve as a primer on real estate debt, covering everything from different ways to finance an acquisition, to key terms in loan documents and how to model an amortization schedule. A significant portion of this module is dedicated to understanding the applications of leverage, reviewing key terminology and introducing debt-specific calculations. The module concludes with a step-by-step modeling walkthrough in Excel.
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The Capital Stack
1. Why use Leverage?
12:41
2. Course Downloads
Files
3. Methods of Financing
2:27
Key Financing Terms
4. Key Financing Terms
1:31
5. Loan Amount
3:02
6. Interest Rate
12:53
7. Loan Term
0:45
8. Amortization
2:52
9. Fees
2:00
10. Recourse
2:08
11. Prepayment Penalties
9:34
Lender Considerations
12. Lender Consideration Introduction
0:19
13. Lender Universe
8:38
14. Loan Types
3:31
15. Loan Sizing
20:11
16. Additional Funding Mechanisms
6:29
Amortization Schedule
17. Loan Cash Flows
3:36
18. The PMT Function
1:27
19. Amortization Schedule to Proforma
1:17
20. Debt Financing - Model Flow
0:33
21. Amortization Table Practice
8:20
22. Debt Financing - Model Layout
2:21
23. Debt Financing Assumptions
4:14
24. Modeling Debt Financing
15:42
25. Calculating Levered Cash Flow
1:17
Levered Cash Flow
26. Defining Levered Cash Flow
0:57
27. Importance of Levered Cash Flow
0:27
Joint Ventures & Waterfalls
Section 5 of our Real Estate Financial Modeling Program. The waterfall is infamously part of most re ...
5
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Course TOC
Joint Ventures & Waterfalls
Section 5 of our Real Estate Financial Modeling Program. The waterfall is infamously part of most real estate interview modeling tests. This module introduces joint ventures and the theory behind waterfalls. After introducing key terminology and reinforcing the underlying theory, considerable time w ...
Section 5 of our Real Estate Financial Modeling Program. The waterfall is infamously part of most real estate interview modeling tests. This module introduces joint ventures and the theory behind waterfalls. After introducing key terminology and reinforcing the underlying theory, considerable time will be spent on a step-by-step walkthrough of how to model a waterfall.
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Waterfall Fundamentals
1. Joint Venture Fundamentals
5:02
2. Course Downloads
Files
3. Waterfall Fundamentals
2:44
4. Joint Venture & Waterfall Key Terms
0:27
5. Joint Venture Example
2:51
Conceptualizing a Waterfall
6. Waterfall Core Concepts
6:22
Modeling a Waterfall
7. Hurdle Mechanics
7:19
8. Joint Venture & Waterfall - Model Flow
1:11
9. Hurdle Schedules Explained
9:15
10. Calculating Levered Returns
1:04
11. Building the First Hurdle
14:33
12. Building the Second Hurdle
12:38
13. Building the Third Hurdle
7:27
14. Building the Last Hurdle
7:47
15. Understanding Post-Waterfall Returns
4:49
16. Joint Venture & Waterfall - Model Layout
1:28
17. Modeling Joint Venture Assumptions
2:49
18. Modeling a Waterfall Part 1
9:27
19. Modeling a Waterfall Part 2
9:52
20. Modeling a Waterfall Part 3
5:43
21. Modeling a Waterfall Part 4
4:04
22. Summarizing Waterfall Outputs
4:04
Summarizing & Analyzing the Model
Section 6 of our Real Estate Financial Modeling Program. Real estate financial models are tools for ...
6
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Course TOC
Summarizing & Analyzing the Model
Section 6 of our Real Estate Financial Modeling Program. Real estate financial models are tools for projecting the cash flows of a potential investment. The cash flow projections alone are not enough to analyze a potential investment. This module will cover how to summarize the outputs of a model to ...
Section 6 of our Real Estate Financial Modeling Program. Real estate financial models are tools for projecting the cash flows of a potential investment. The cash flow projections alone are not enough to analyze a potential investment. This module will cover how to summarize the outputs of a model to form the basis of an analysis by discussing key metrics and how to put these metrics into perspective.
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Returns & Key Metrics
1. Analyzing a Real Estate Model Introduction
1:11
2. Course Downloads
Files
3. Return Metrics
11:32
4. Modeling Return Metrics
6:14
5. Debt Metrics
1:23
6. Modeling Debt Metrics
2:55
7. Other Metrics
3:54
8. Modeling Other Metrics
4:05
9. Sources & Uses
1:52
10. Modeling Sources & Uses
8:22
11. Completing Modeling Return Metrics
4:10
Making a Model Useful
12. Review of Formatting and Layout
1:26
13. Summarizing Model into Annual Cash Flows
9:54
14. Checks
1:12
15. Transaction Summary
1:02
16. Transaction Summary - Model Flow
1:40
17. Transaction Summary - Model Layout
2:03
18. Modeling the Transaction Summary, Part 1
15:48
19. Modeling the Transaction Summary, Part 2
17:56
20. Modeling Checks Part 1
9:06
21. Modeling Checks Part 2
7:57
Taking a Step Back
22. What are we looking for?
1:52
23. Risk/Return Spectrum
8:11
24. Tweaking the Model
2:41
25. Modeling Sensitivity Tables Part 1
12:16
26. Modeling Sensitivity Tables Part 2
11:37
Development Modeling
Section 7 of our Real Estate Financial Modeling Program. Real estate can be bought or built. Up to t ...
7
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Course TOC
Development Modeling
Section 7 of our Real Estate Financial Modeling Program. Real estate can be bought or built. Up to this point, the course has been focused on buying property. This module will unpack the differences and similarities in modeling a development and an acquisition. Development specific topics such as co ...
Section 7 of our Real Estate Financial Modeling Program. Real estate can be bought or built. Up to this point, the course has been focused on buying property. This module will unpack the differences and similarities in modeling a development and an acquisition. Development specific topics such as construction budgets and lease-up will be covered as well as the nuances of development financing. Armed with the real estate financial modeling fundamentals previously discussed, this module will also go into detail on how to model a development step-by-step.
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Major Differences in Development
1. Introduction to Development Modeling
1:47
2. Course Downloads
Files
3. Project Timeline
5:23
4. Modeling Dynamics
3:20
5. Development - Model Flow
1:07
6. Why a Multifamily Example
0:47
Understanding a Development Budget
7. Development Cost Categories
4:45
8. Review of Unlevered Cash Flow
1:26
9. Unlevered vs. Levered Development Costs
0:40
10. Development Budget Contingency
1:42
11. Development Fees
4:12
Leasing-up a Development
12. Lease-up Key Terms
2:33
13. Review of Multifamily Revenue Builds
1:35
14. Projecting Revenues & Expenses
1:40
15. Lease-up Timing
1:39
Development Financing
16. Introduction to Development Financing
0:37
17. Reserves & Shortfalls
2:51
18. Funding a Development Loan
4:08
Development Key Metrics
19. Development Return Metrics
3:40
20. Other Development Metrics
1:27
Modeling a Development
21. Development - Model Layout
6:21
22. Modeling the Development Budget
8:14
23. Lease-up & Timing Assumptions
9:10
24. Modeling Timeline Trackers
11:25
25. Modeling the Development Timeline
8:00
26. Modeling the Lease-up Timeline
5:41
27. Trending Revenues & Expenses
12:35
28. Modeling Proforma Revenues & Expenses
12:17
29. Modeling Development Costs
3:42
30. Review of What We've Done to This Point
1:09
31. Modeling Development Financing
1:33
32. Circularity in Development Financing
4:21
33. Modeling the Funding Timeline
5:09
34. Modeling Financing Reserves
10:48
35. Reviewing the Debt Schedule
1:16
36. Reviewing the S&U and Waterfall
0:36
37. Summarizing the Development Model
4:53
38. Transaction Summary Overview
2:47
39. Revenue & Expense Summary
22:11
40. Modeling Checks
10:23
41. Development Modeling Wrap-up
4:10
Office Building Acquisition Case Study
Section 8 of our Real Estate Financial Modeling Program. Building well-formatted and extensive model ...
8
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Course TOC
Office Building Acquisition Case Study
Section 8 of our Real Estate Financial Modeling Program. Building well-formatted and extensive models is the name of the game for those working for institutional firms or preparing materials for a potential investor. But, many situations – whether a modeling test or first pass at a potential persona ...
Section 8 of our Real Estate Financial Modeling Program. Building well-formatted and extensive models is the name of the game for those working for institutional firms or preparing materials for a potential investor. But, many situations – whether a modeling test or first pass at a potential personal investment – necessitate building a model quickly from a blank Excel sheet. This acquisition case study is an opportunity to test everything you’ve learned utilizing the key pieces of information you would have in the real world. After attempting the case study independently, follow along to see how best to stay organized and which “corners to cut” when under time constraints.
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Office Building Acquisition Case Study
1. Office Building Acquisition Case Study Introduction
13:55
2. Course Downloads
Files
3. Creating the Inputs Tab
15:43
4. Revenues
7:30
5. OpEx and NOI
2:40
6. Leasing and Capital Costs
5:49
7. Acquisition and Sale
4:45
8. Unlevered Cash Flow and Returns
3:07
9. Debt Schedule
7:11
10. Debt and Levered Cash Flow
9:51
11. Revisiting Our Assumptions
4:21
12. Waterfall
1:22
13. Summarizing the Model
12:56
14. Tying it All Together
5:49
Multifamily Building Development Case Study
Section 9 of our Real Estate Financial Modeling Program. Building well-formatted and extensive model ...
9
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Course TOC
Multifamily Building Development Case Study
Section 9 of our Real Estate Financial Modeling Program. Building well-formatted and extensive models is the name of the game for those working for institutional firms or preparing materials for a potential investor. But, many situations – whether a modeling test or first pass at a potential persona ...
Section 9 of our Real Estate Financial Modeling Program. Building well-formatted and extensive models is the name of the game for those working for institutional firms or preparing materials for a potential investor. But, many situations – whether a modeling test or first pass at a potential personal investment – necessitate building a model quickly from a blank Excel sheet. This development case study is an opportunity to test everything you’ve learned utilizing the key pieces of information as you would in the real world. After attempting the case study independently, follow along to see how best to stay organized and which “corners to cut” when under time constraints.
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Multifamily Building Development Case Study
1. Multifamily Building Development Case Study Overview
14:55
2. Course Downloads
Files
3. Creating the Inputs Tab Part 1
21:14
4. Creating the Inputs Tab Part 2
22:58
5. Timelines
17:15
6. Revenues
9:21
7. OpEx and NOI
6:24
8. Development and Sale
7:03
9. Unlevered Cash Flow and Returns
2:48
10. Debt and Levered Cash Flow Part 1
8:35
11. Debt and Levered Cash Flow Part 2
22:10
12. Revisiting our Assumptions
5:27
13. Waterfall
1:29
14. Summarizing the Model
17:51
15. Tying it All Together
7:16
Get the Real Estate Financial Modeling Certification
Learners are eligible to earn Wall Street Prep's globally recognized Real Estate Financial Modeling Certification. The certification is earned by successfully completing the final exam from the program's 7 individual courses. ("Case study" courses do not include a final exam). These online assessments can be taken any time after enrollment in the program.
Course Samples
Course Introduction
Real Estate Model Structure
Multifamily Revenue Build: Historical Financials
Modeling Acquisition & Sale
Amortization Table Practice
Building the First Hurdle
Modeling the Transaction Summary
Lease-up & Timing Assumptions
RE Model Template (Values Only)
Real Estate Financial Modeling Package Highlights
Intuitive, Self-Paced and Comprehensive
Wall Street Prep's Real Estate Financial Modeling Package is intuitive and self-paced. Using a combination of videos, Excel model templates and financial reports, this course teaches students and professionals how to build, analyze, and interpret Real Estate financial models in a step-by-step fashion at their own pace. The program utilizes a case study format, as students follow their tutorial guide alongside the Excel model templates, and are directed to the appropriate external documents in order to build comprehensive models the way the way it's done on the job.
Support Center
Upon enrollment, students gain free and unlimited access to Wall Street Prep's Online Support Center, where they receive answers to questions, free downloads, and important updates from a support staff comprised entirely of experienced former investment bankers.
Private Online Tutoring (Additional Fee Applies)
Want a little extra attention? Live video-chat tutoring is available with experienced real estate professionals (additional fee applies). In addition, your tutoring sessions enable you and your tutor to share models, a virtual whiteboard and any other files via an integrated web and phone platform that enhances the learning experience.
Prerequisites
The program assumes a basic introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement) and proficiency in Excel. Students with no prior background in Accounting should enroll in the Accounting Crash Course. Students with limited experience using Excel should enroll in the Excel Crash Course.
Learner Feedback
Earn CPE Credits with WSP Online Courses
Wall Street Prep is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.