Learning Pro Forma Modeling
I'm currently working as an urban planner in the public sector, but would like to make a leap into the private side as an analyst or project manager. Obviously, pro forma modeling is one thing I need to have under my belt to even consider this move. Does anyone have suggestions as to where to get a better handle on pro forma modeling? I'm looking at ULI's online courses. ULI is a bit pricey, but I've been told it's worth it. Planetizen also offers a few courses. Thanks!
Bump
I got my current job as an Associate at a public REIT thanks in a large part to BIWS. I still reference some of the lessons periodically. Definitely recommend.
Very helpful. I've considered looking into REIT's as well, but not sure how many opportunities there are in the Rocky Mountain region (Denver, Salt Lake). Do you think the Advanced Modeling course is necessary to take before the RE Modeling course?
Depends on what kind of RE job you are looking at but probably not. You wouldn't need to know how to do an M&A model or three statement model if you are only dealing with assets on a portfolio level (as opposed to corporate entity level).
Hi Any insight on the what kind of modeling would the lending side-entry level originations/underwriting do? Thank you!!!
I think the advanced modeling course would definitely be useful on whatever side of the RE equation you're on. I have an MBA and could do a decent DCF already, but still learned stuff from the BIWS advanced modeling course. It's almost not just "advanced modeling" it's basically "expert Excel".
I agree with you it is a good course to develop excel/modeling skills in general, but lot of the modeling you learn is related to M&A or capital transactions like public/private equity raise that you don't really use for a lender role, wouldn't recommend this path if you only have limited time to prepare as these lessons are very long.
Adrian, I'm not on the lending side but based on my limited knowledge, I'd focus on getting familiar with cash flow modeling. I've heard some good things about Foundations of Real Estate financial modelling by Staiger although apparently the book has lot of errors haha. I'd also study the type of credit metrics the lending side looks at (debt yield, DSCR, etc) and get familiar with how you calculate mortgage schedule in Excel. I liked BIWS's real estate course as well.
Will second the recommendation to supplement BIWS w/ Staiger's book. Will also second the fact that it has some egregious errors. I think the editor may have been drunk.
Overall, great material, but one of the supplementary Excel models that you can access after buying the book was capping debt service instead of NOI.
The book definitely has blatant errors but you can google what those are. Overall, the lessons are fantastic and it'll teach you depth beyond what most excel tests will actually require.
I remember going into my first excel test all nervous that I'd forget something and then being blown away by how easy it actually was compared to what I had been working on.
UDR and Aimco are both based in Denver.
Is it possible to split the BIWS program between multiple people?
also wondering...
Thanks everybody! This was very helpful.
I am creating a Master Class Entitled "The Definitive Guide to Ground Up Development". The 1st Course addresses pro forma analysis and uses a Built To Rent Single Family asset to demonstrate and teach Ground Up Development. I have created an Excel Workbook composed of 10 worksheets which is structured to primarily serve the Developer Partner and its Investment Partner. Let me know if you are interested in learning more.
Honestly, there are some passable courses for cheap on Udemy (not the optimal route but if you can do some self-learning and fill in the gaps then you'll be fine). Also just messing around with A.CRE models can help give you a broad understanding of modeling fundamentals.
As a ground up developer with 55 year of experience, I have reviewed many of the pro forma tools available for purchase and gratis. In none of these cases have I found what I hold to be a true Developer's Pro Forma. What that means is tool that operates to instantly report the cause and effect of changing key variables (one or a set of them) to reflect the impact (+/-) that results from making those changes.
Additionally, any pro forma should report performance on the project AND stakeholder levels and allow you to get a "feel" for sensitivity of the proposed project.
I don’t even think you are 55 years old. How the hell do you have 55 years of experience ?
The courses offered by GetREFM are good.
I'd also plug the A.CRE accelerator as well. It's very, very, comprehensive but can be a little pricey.
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