Day 1: Real Estate Developer (Financial Modelling in Excel)
Tuesday 25 November, 10:00 AM 2014 to 11:45 PM 2014
40 Holborn Viaduct, London, London, EC1N 2PZ (View Map)

Learn how to model Real Estate Development Projects in Excel

This 100% hands on course shows you how to ‘run the financials’ on a development project using Excel. On this course you will build a costs orientated cash flow from scratch with phased sales income then calculate the IRR, NPV and Equity Profit Multiple. You will also learn how these and other metrics can be used together and how they can sometimes produce spurious results. The course will also show you how to construct, optimise and understand the unique features of development finance as well as how to calculate and interpret project and financial risk. 


Ideal for property developers, lenders, analysts and consultants.


1. Comprehensive course material  2. All Excel models used  3. Two months post course support.


Course Contents:

DAY ONE - Learn how to build a detailed property development project cash flow


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

Borrowing and analysing feared 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 add financing to and perform risk analysis on development projects

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

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

Random variables, input distributions and simulation modelling

Irwin Mitchell LLP
40 Holborn Viaduct, London, London, EC1N 2PZ (View Map)
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