Real Estate Financial Modeling for beginners
Hey guys,
I’m trying to build a solid foundation for RE modeling in the hopes of eventually applying to a REIT or REPE fund down the road. Any suggestions on how to build up my financial modeling skills? Assume I’m a complete beginner.
At the moment, I’ve been advised to look at Adventures in CRE, REFM, Marquee, and Argus, but I’m not entirely sure which of these are worth looking at, or which order I should proceed in.
Going thru the same process. I went ahead with REFM because it is cheap compared to the other financial modeling certs, and so far I am satisfied.
I am planning on going thru the Argus cert later because it actually is required of every single real estate company. But, I plan on honing my financial modeling skills before I dive into Argus.
If you get something other than REFM and are interested in exchanging files, lemme know.
Thanks lmin. I will keep you posted.
Argus cert is definitely not required by every single real estate company. Experience with the program definitely helps though.
It’s not hard to learn Argus either. If you understand the basic principles of modeling, it’ll be a breeze. It’s just doing that in a specific program and knowing what tab to click on is all. I also did the REFM and was happy with it. Although I think Linneman’s textbook + Adventures in CRE is a great combo to substitute.
Is it necessary to take the BIWS Excel and Financial Modeling + Advanced Modeling courses before taking the BIWS Real Estate Modeling course?
No it is not.
I do not recommend REFM.
BIWS/Adventures in CRE are much much better. I took all levels of REFM and also had one of their employees give a boot camp at my company which was OK at best. The way they build their models is not very efficient and can be hard to follow (in my opinion). I much prefer the methods from Adventures in CRE
Agreed, I think REFM models are horrendous. A.CRE and BIWS are far better - slight preference for A.CRE.
Out of BIWS, REFM, and Adventures in CRE, I like ACRE the best. The videos are super helpful, and there’s variety. If you wanna buy REFM models, I suggest waiting for their sales.
I also found a lot of practice through Googling models and browsing through the WSO forums. You can find links to a Google Drive of AIG and Related case studies (I think?)
If you have friends who have gone through modeling tests, they might still have the prompt for you to practice with. If not, it’s a good excuse to network.
Do Google searches to find complex real estate models. They are out there! Once you find them, take them apart piece by piece and learn how the creator made them dynamic. Making a model dynamic and easy to use is the key thing with complex models. The back end can look like the matrix but the front end could just be a toggle switch. Also beef up on formulas in Excel. If you can take these models apart and put them back together piece by piece, you will gain knowledge about modeling. Feeling really crazy? Start recording macros in Excel and learn how to write VBA.
Moral of the story, do a Google search before you shell out cash.
Do Google searches to find complex real estate models. They are out there! Once you find them, take them apart piece by piece and learn how the creator made them dynamic. Making a model dynamic and easy to use is the key thing with complex models. The back end can look like the matrix but the front end could just be a toggle switch. Also beef up on formulas in Excel. If you can take these models apart and put them back together piece by piece, you will gain knowledge about modeling. Feeling really crazy? Start recording macros in Excel and learn how to write VBA.
Moral of the story, do a Google search before you shell out cash.
There is a free course out there that could help you. Has some basic and more advanced lessons
https://streetwisemodeling.thinkific.com/courses/Real-Estate-Pro
I would start by completing Levels I-III of REFM before moving onto any case studies or interview tests. CREFC has the best Argus training in my opinion though none are currently scheduled - being familiar with what the software is and how it is used could be enough for an entry level position.
i went onto ACRE website, but looks like they do not offer video lessons, but just free resources on their CRE 101 posts. Am I missing out sth here?
Some of their posts have videos and some don't. You can find all their video tutorials on their YouTube channel (search for Spencer Burton and Michael Belasco).
There are a few videos on YouTube I’ve seen that can help. I can post some here or send them to you. LMK
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