Analyze Real Estate Investments | Financial Modeling

Name: Analyze Real Estate Investments | Financial Modeling
Rating: 3.6 (46 reviews)

Analyze quality investment properties with a professional tool - Understand your real estate market.

Created byMarco Osorio

Last updated 12/2016

English

English [Auto],

What you'll learn

Build a Financial Model that can be tailored to any real estate market
Work personally with investors, and feel confident about guiding them through the life of an investment process.
See the blueprint of any real estate investment, know the difference between good and bad investments

Course content

5 sections • 21 lectures • 2h 12m total length

Introduction1:41
Course Start. What is Real Estate? In specific, what does it mean to invest in real estate? By the end of this lecture you should understand the emotional, or unemotional decisions you will make as an investor when thinking about investing in real estate.
Why Invest in Real Estate?1:56
Explore why real estate is a safer long-term asset than stocks, and how property can appreciate, generate rent cash flow, and be used for sale or inheritance.
Investor Perspective2:28
Adopt the investor perspective by weighing return of investment and return on investment over a ten-year horizon, noting break-even and a 110.6% profit, with residential and commercial investor types.
Financial Models10:50
By the end of this lecture you should understand the emotional, or unemotional decisions you will make as an investor when thinking about investing in real estate. You should also understand the need for advanced tools such as financial models that help you judge investments side by side.

Assumptions7:43
The assumptions you build into your model will shape the projections you receive from the actual inputs.
Assumption Template2:29
In this unit we will organize different tabs to show different financials. We will learn how to reference cells back to our assumptions main tab. Basically, we will learn how to connect everything.
Macros6:14
With the use of Macros we will be able to direct which type of cost we will incur (New Development or Re-Sale). We will also be able to activate our mortgage calculator.

Income Breakdown7:05
Loan Analysis3:48
Income Analysis4:49
Analyze real estate investments by calculating net operating income, cash flow, mortgage payments, and break-even ratio, and assess cash-on-cash return and return on equity using gross rent and cap rates.
Sale Analysis4:46
Build the sale analysis sheet to track proceeds after sale, selling costs, cumulative cash flow, and initial cash invested, then calculate net profit and return on investment.
Selling Costs7:51
An investor analyzes selling costs when liquidating property, including brokerage fees, New York State transfer tax, New York City real property tax, and closing costs, to determine net proceeds.
Initial Investment Closing Costs + Yearly Costs9:40
Amortization Table5:02
Build an amortization table to track monthly mortgage payments, interest, cumulative principal, and loan balance over 240 months, informing equity and tax deduction planning.
Loan Amortization Part 24:29
In this unit we will create a short version of our financial statements sheet. We will use this sheet to present to investors, or print for ourselves.
Real Estate Finance Sheet Continued11:20
Finalize the real estate finance sheet by adjusting for inflation, incorporating initial cash invested, and calculating cap rate, net operating income, return on investment, and cash-on-cash return across mortgage scenarios.
Summary Sheet16:55
Monte Carlo Simulation8:04
Explore Monte Carlo simulation to quantify real estate investment risk and uncertainty, using appreciation rates, standard deviation, and 2,000 iterations to estimate ten-year value with mean and percentiles.
Monte Carlo Simulation Part 25:30

Requirements

Before taking this course you should have a sound understanding of what your objectives are. Are you looking to understand investments? Are you looking both to understand investment making in order to invest yourself? Once you know your purpose, I will teach you how to have a better understanding of the meaning of ROI and how to think in terms of common sense, which will take you far. Requirments: 1. Basic knowledge in financial accounting (Operating Statements, Mortgages, Equity). 2. Knowledge on Appreciation 3. Know the difference between residential and commercial real estate. 4. Rent, Property Improvement, Comparative Market Analysis.

Description

Welcome to this finance course! What you can expect from this course is building the necessary tool to assess real estate investments. I will build the financial model with you, and explain the math behind the equations, and the meaning of every financial metric (Ex. CapRate). This is a hands-on course meaning I will provide the excel sheet for you to practice on your own time. This tool can be adapted to any real estate market. I will teach you common sense behind “complicated decision making". What is good about this is that you will not only build a financial model, but you will learn what makes up a good investment. We will take into account future values of a property, or equity, by measuring economic factors through a powerful excel financial metric named Monte Carlo Simulation.

Please send me a message for any question you may have. I look forward for us to enjoy.

My Best,

Marco

Who this course is for:

Real Estate Investors looking to acquire single homes/apartments.
Finance Majors, Economics Majors, PH.D Students on any finance level
Investors looking to assess the economics of an investment

Analyze Real Estate Investments | Financial Modeling

What you'll learn

Explore related topics

Course content

Brief Introduction To Real Estate4 lectures • 17min

Developing The Financial Model3 lectures • 16min

Breaking The Financial Model Down12 lectures • 1hr 29min

Additional Information1 lecture • 7min

Conclusion1 lecture • 4min

Requirements

Description

Who this course is for: