Real estate modelling and analysis Course

Real estate modelling and analysis Course

The course equips you with a comprehension on the various concepts and practices in the real estate sector. Our courses also offers in-depth knowledge of the financial protocols relevant to the real estate market. Consequently, the participants will be equipped with the know-how to formulated advanced and effective real estate financial models independently.


The course will explain the key concepts and metrics involved in the cash flow of real estate. The course is designed to ensure that the participants get thorough insights on whether to own or rent a real estate possession and make practical decision regarding financing and investing in the real estate field. Furthermore, the course also highlights the role of private equity in commercial real estate.

Who should attend

Anyone who wants to enhance their expertise in. Real Estate modeling and analysis should attend this course, which includes:

  • Middle to senior managers from different industries
  • All professionals who want to deal or currently deal with financial modeling in their company
  • Consultants, advisors, and other professionals who wish to improve their modeling skills


The non-theoretical methodology includes interactive discussions, case studies, interactive games, and assignments to understand the concepts and their applicability.


We carefully choose all our trainers with rich and vast experience in the financial sector. The course will be conducted by an experienced training consultant having more than 20 years of industry experience with some of the world’s leading financial institutions, specializing in corporate finance, investment banking, corporate fundraising, company valuation, and asset valuation.

Module – 1: The Real Estate Segment: An Overview

  • Understanding the structure of the real estate segment
  • Reviewing the access points and performance of the real estate market
  • Significance of accounting in the real estate sector

Module – 2: Different Types of Real Estate business model

  • Studying the ‘Develop and Hold’ business model
  • Reviewing the ‘Develop and Land Lease/Sell Pads Site’ model
  • Implications of the ‘Develop/Lease-up, and Sell’ model

Module – 3: Reviewing the Real Estate Model Process and step

  • Reviewing the net operating income modeling of residential, commercial, hostels, mix development etc
  • Process of cash flow before debt service modeling
  • Phases in interest expense modeling, metric acquisition modeling, and metric disposition modeling

Module –4: Real Estate Financial Modelling Setup

  • Setting up the transaction and operating assumptions; projecting the construction period
  • Building the pro forma and making return calculations
  • How to make an investment decision based on your conditions and model output

Module – 5: Management of Construction Schedule in Real Estate

  • How to create a work breakdown structure
  • Setting reasonable deadlines for milestones
  • How to link each of the milestones with the available resources

Module – 6: Incorporation of Revenues, Costs, and Taxes in Financials

  • How to calculate the cap rates and net operating income (NOI)
  • Undertaking sensitivity analysis and valuation matrix
  • Reviewing depth service, before tax and after-tax cash flow
  • Assessing the advanced revenue and expense modeling

Module – 7: Financing the Real Estate Business

  • Implications of standard financial covenants and their application to cash flow
  • Importance of various structures, such as amortization
  • Reviewing mezzanine and participation loans

Module – 8: Real Estate Debt Modelling

  • Strategic understanding of loan-to- value (LTV) and loan-to-cost (LTC)
  • Significance of debt service coverage ratio (DSCR) and debt yield
  • Studying loan constant: Positive vs. negative leverage

Module – 9: Formulation of Waterfall Mechanism of Real Estate

  • Discussing the equity waterfall model
  • Significance of the equity waterfall mechanics
  • How to build a waterfall structure

Module – 10: Formulation of Real Estate Cash Flow Statement

  • Studying gross profit ratio (GPR), general vacancy, and credit loss
  • Implications of percentage rent and storage income
  • Significance of tenant improvement allowances and leasing commissions
  • Reviewing advanced cash flow modeling

Module – 11: Sensitivity and Scenario Creation and Analysis

  • How to do sensitivity analysis on suburb property values
  • Assessing the differences between sensitivity and scenario analyses
  • Perform sensitivity and scenario analyses

Module – 12: Real Estate Valuation

  • Undertaking DCF analysis and cash-on- cash return
  • How to undertake yield-based valuation
  • Reviewing the private equity valuation approach
  • Implications of the hotel and land valuation

Module – 13: Private Equity Investments in Real Estate

  • How to formulate capital reserves
  • Determining the loan proceeds, loan payoff, and total levered cash flows
  • Analyzing levered and unlevered equity multiples

Module – 14: Formulation of Principal Real Estate Metrics

  • Assessing the principal real estate investment analysis metrics
  • Significance of internal rate of return (IRR) and Excel workout
  • Review of capitalization rate, cash-on- cash rate, equity multiple, and Excel workout
  • How to calculate property value per square feet
  • Reviewing the investment analysis investment metrics

If you want to know more about the program, please refer to our course page at Riverstone Training schedule!