Real Estate Private Equity Modelling Training Course

Introduction:

This real estate private equity course is designed to provide you with an understanding of the financial aspects of commercial and residential real estate investment and development. We aim for you to analyze how to invest and sell profitably. It will explore methodologies such as how to calculate returns, how they are financed, and how to successfully analyze development cash flows, leases, and risks.

You will gain a thorough understanding of the valuation process and explore the principles behind financing a project. This real estate private equity training will also include a review of the different financial instruments, how they can be used, and their impact on the overall performance of the real estate project.

Targeted Groups:

• Real Estate Analysts and Investors.
• Real Estate Planners and Developers.
• Government Officials and Regulators.
• Mortgage Brokers, Bankers, and Lenders.
• Investment Bankers/Managers, Venture Capitalists, and Private Equity Specialists.
• Finance Managers and Analysts.
• Non-finance professionals plan to fully understand real estate finance and investment, including present value.

Course Objectives:

At the end of this real estate private equity course, the participants will be able to:

• Learn the key financial concepts, ratios, and models needed to analyze investment and development proposals for Gulf and Western real estate.
• Explore the use of prophecy and modern technology in real estate strategy for development and investment.
• How to construct a private investment portfolio?
• How do you assess the risks and returns in private investments and real estate portfolios?
• Learn how to perform relative value analyses of differing investments.
• How do you manage troubled investments?
• How do you understand how compensation issues affect performance?
• Appreciate how leases work and how they influence real estate valuation.
• Analyze real estate development and investment risks and apply them to spreadsheets and other real estate software.

Targeted Competencies:

Upon the end of this real estate private equity training, the participant's competencies will:

• Investment analysis.
• Fund structuring.
• Risk assessment.
• Financial modeling.
• Market research.
• Asset management.
• Portfolio diversification.
• Deal sourcing.
• Due diligence.
• Valuation techniques.
• Legal and regulatory compliance.
• Strategic planning.
• Capital raising.
• Investor relations.
• Performance monitoring.

Exploring Real Estate Private Equity Strategy:

Real estate private equity involves sophisticated strategies to maximize investment performance. Students will explore creating and implementing a real estate private equity business plan in this course segment. Attendees will learn how to amplify returns and manage assets effectively while assessing various case studies demonstrating successful real estate private equity strategies.

This exploration includes articulating how a robust strategy can guide the growth of a real estate private equity asset management portfolio. By incorporating various real estate private equity tools, including analytical models and comprehensive reports, learners will be poised to comprehend real estate private equity, understand the dynamics of investing in it, and eventually aim to obtain a real estate private equity certification.

Course Content:

Unit 1: Introduction to Real Estate Private Equity:

• What is private equity?
• Risk and return.
• Valuation metrics.
• Trends in Real Estate Private Equity.

Unit 2: Understanding a Private Equity Fund Model:

• Layout and key elements of a PE Model.
• Private equity market and strategies.
• Understand the deal structure and interested parties.
• Understand the capital structure.
• Review of the key debt instruments.
• Review of the key equity instruments (a special case of Management Buyout).

Unit 3: Fund valuation methods:

• The multiples approach to valuation.
• Discounted Cash Flow (DCF), modeling, and core concepts.
• Private Equity performance metrics.
• Pre-money vs. post-money valuation.
• Special Cases.

Unit 4: Accounting Principles:

• Balance Sheet: Real Estate Valuations and Debt.
• Profit and Loss: Capital Allowances.
• Cash Flow Statement: Escrow Accounts and Distributions.

Unit 5: Modelling Fund Dynamics, Drivers, and Forecasting:

• Forecast of revenue and cost drivers.
• Indirect costs and historical ratios in the working capital schedule.
• Amortization/Depreciation schedule and capital expenditures.
• Debt schedule and the cash available to service the debt.
• Modeling dividend distributions.
• Shareholder's equity schedule and completing the income statement.
• Modeling and Analyzing Risk.

Unit 6: Performance Analysis:

• Benchmark returns within Real Estate and across industries.
• Analyze leverage and coverage ratios.
• Calculate Equity Returns Using EBITDA or Net Income.