Back by popular demand, this intensive training course provides you with financial modeling skills for equity Joint Venture partnership modeling for all transaction and property types, and multi-tenant office property acquisition transaction analysis.
Included with your registration are:
Permanent access to an easily navigated, mobile-friendly Video Tutorial worth $179.00
Accompanying unlocked Excel files, compatible with both PC and Mac
All the knowledge needed to attain REFM’s Level 3 Certification
A bonus job interview test Excel Solution Set and 1-page investment memo
Why train with REFM?
- Time-tested training content second to none in terms of refinement, depth and breadth
- Efficient, student-focused teaching and learning format
- Potential to achieve the most highly-regarded Excel skills certification in the business
REFM is the trainer to these organizations:
When and Where
Sunday 10/21/18 – 8:30 AM to 5:00 PM Eastern
In-Person in Midtown Manhattan: 275 Madison Avenue #1201, New York, NY 10016 (NOTE: Building entrance is on E. 40th Street east of Madison)
Or Online (live streaming, not recorded): Online participants are able to ask questions in real time via chat or audio link
Course Format and Participant Computer Requirements
- lecture with real-time Q&A
- heavy hands-on Excel exercises
- attendees must provide their own computer with Excel 2007 or more recent for PC, or Excel 2010 or more recent for Mac
8:30 AM to 12:30 PM
Single Transaction Equity Joint Venture Partnership and Waterfall Modeling (Certification Level 3) Bootcamp
50% Lecture | 50% Hands-On Exercises
Applicable real estate transaction types: all income-producing and all unit-sales based
In this 4-hour session, you will learn about how to model equity joint venture partnerships for individual property transactions, both developments and acquisitions. “Dollars in” (capital contributions) and “dollars out” (partitioned levered cash flows) to all equity players will be studied in detail.
Topics covered include:
- rationale behind targeting disproportionate returns to the sponsor
- how to achieve disproportionate returns through fees and cash flow partitioning
- preferred return overview
- preferred return variations with respect to priority of payment
- preferred return in context (Payment types A, B and C)
- nature of preferred return (Non-compounded and compounded, non-cumulative and cumulative)
- waterfall distribution overview
- promote (carried interest) mechanism overview and modeling
- look-back internal rate of return (IRR) method
- 3-Tier waterfall modeling
- double-promote, 5-tier waterfall modeling
- alternate compounding periods: monthly, daily, quarterly
- sample partnership structures.
12:30 PM to 1:00 PM Lunch Break
1:00 PM to 5:00 PM
Office Property Operating Projection and Acquisition Screening Analysis Modeling
40% Lecture | 60% Hands-On Exercises
In this 4-hour session, you will learn the industry-standard P&L (profit and loss) statement line item set-up structure for office properties.
First, you will first learn the generic 20-line item set-up for an existing operating commercial office property, starting at Base Rental Revenue (Gross Potential Rent) and ending at Before-Tax Levered Cash Flow (cash flow to equity). Next, the assumptions for projection modeling exercise are explained.
There are three Suites in the property. The assumptions to be used are that leases for Suites 100 and 200 were put in place at the start of the trailing twelve months, and that Suite 300 is vacant currently and will remain vacant through the end of Year 1. Suite 300 rent will commence at the start of Year 2 with a Year 2 Base Year.
Suite 100 is a triple-net (NNN) lease, and Suites 200 and 300 are Gross leases (Base Year stop).
The following assumptions inputs are provided for you to key into the Exercise tab.
- Property-level Base Year (BY) operating expenses, real estate taxes and utilities PSF
- Base Year rents for all three suites
- general vacancy and credit loss
- Annual growth rates for rents for all three suites
- % of reimbursable and non-reimbursable expenses that are fixed
- Annual growth rates for:
- parking and miscellaneous revenuereimbursable expenses
- real estate taxes
- non-reimbursable expenses
- capital reserves
- Management fees as a % of EGR
- Tenant Improvements and Leasing Commissions PSF for Suite 300
Projection formula mathematical descriptions are provided to guide your Excel formula construction.
The second part of the lesson takes the NOI line from the Part 1 Solution set tab, and weaves it into an acquisition analysis screening tab that integrates purchase, sale, debt and equity elements.
The sections of this analysis are:
- Uses of Funds
- Sources of Funds
- Sponsor equity
- Third Party Investor equity
- Senior Acquisition Loan (2 options will be modeled, one with a delayed draw for capital costs)
- Unlevered Projection Analysis
- Debt Schedule
- Levered Cash Flow
- Sensitivity Tables
- Levered Summary
Data tables are used to provide a spectrum of outcome possibilities given simultaneous changes in two key inputs. A levered summary table is also provided to evaluate returns for multiple hold durations side-by-side.
Who Should Attend This Course
Intermediate- and advanced-level professionals and students.
Registration includes one completely free re-take of the class in the future.
Course Materials Included, instantly accessible upon registration
Fully-unlocked, annotated Excel files, compatible with both PC and Mac
PDF of the 60-slide presentation for the Level 3 Bootcamp
Online lifetime access to to REFM Level 3 Bootcamp, playable on any device, a $179 value
Job Interview Technical Modeling Test and Solution Set
Case study: development of a hypothetical mixed-use (multifamily and retail) property that includes a refinance and equity joint venture partnership cash flow waterfall with a sponsor catch-up. Assumptions are provided. Build out a 7-year annual projection model down through partner-level returns.
Answer the questions:
- is this an attractive deal to the third party investor at the assumption set given? Why or why not?
- if not, at what values does it become attractive?
Solution set provided is a 100% unlocked, dynamic Excel model with annotations, and includes a 1-page investment committee-style writeup.
Instructor – Bruce Kirsch
Bruce Kirsch is the founder of Real Estate Financial Modeling. Mr. Kirsch has personally trained thousands of real estate professionals and students in commercial real estate business fundamentals and Excel-based financial modeling for commercial real estate analysis.
Mr. Kirsch began his real estate career at CB Richard Ellis, where he marketed high-rise New York City office buildings for re-development in the top-producing Midtown Manhattan Investment Properties Institutional Group. After CBRE, Kirsch worked for a developer of urban infill residential lofts. Mr. Kirsch then engaged in his own urban and suburban condominium and single family detached housing ventures. Mr. Kirsch was then selected as one of the two executives to run New York City-based developer The Clarett Group’s Washington, DC business.
Mr. Kirsch holds an MBA in Real Estate from The Wharton School. Mr. Kirsch is also the co-author of the Fifth Edition of the leading real estate finance and investments textbook, Real Estate Finance and Investments: Risks and Opportunities, along with Dr. Peter Linneman, the founding chairman of The Wharton School’s Real Estate Department. Mr. Kirsch graduated with a BA in Communication from Stanford University.
Technical Specifications for Online Attendance
Online attendance uses the GoToMeeting platform. If you intend to participate using your computer speakers (instead of calling into the conference call bridge), please test your speakers and microphone before the course start time so that you are sure they will work.
Here is what to expect in terms of a user interface if you are participating online.