Real Estate Feasibility Studies & Financial Modeling Training Course

Course Overview

Learning Objectives

• Explain how a real estate feasibility study differs from a general project appraisal or corporate financial model.
• Gather and test market evidence on demand, supply pipeline, absorption, and achievable prices and rents for the target product.
• Convert market research into documented, defensible assumptions for use in a financial model that others can review.
• Estimate development costs, including land, construction, soft costs, finance, and contingency at the level of detail each study stage requires.
• Calculate residual land value and use it to support land bids and landowner negotiations without overstating what a site can carry.
• Build a monthly development cash flow model with land payments, construction draws, and sales collections.
• Model off-plan sales, instalment plans, and escrow release assumptions and their effect on funding needs.
• Value income-producing assets using net operating income, capitalization rates, and discounted cash flow.
• Size development and investment debt using loan-to-value and debt service coverage measures and lender covenants.
• Structure equity waterfalls and landowner profit shares in real estate joint ventures.
• Interpret IRR, NPV, equity multiple, and profit on cost, and recognize where each can mislead.
• Run sensitivity and scenario analysis on price, cost, timing, and absorption assumptions to reveal what drives the result.
• Present a clear investment recommendation backed by a reviewed and auditable model.

Who Should Attend

Learning Outcomes

• By the end of this course, participants will be able to:
• Scope a real estate feasibility study suited to the stage of the project decision.
• Assess demand, supply pipeline, absorption, and pricing evidence for a target market.
• Document model assumptions so that reviewers can trace and challenge each one.
• Prepare a development appraisal and calculate residual land value to support a land bid or landowner negotiation.
• Build a monthly development cash flow with land, construction, sales, and funding in a clearly structured spreadsheet.
• Model off-plan collections and show their effect on peak funding need.
• Value an income-producing asset using capitalization and discounted cash flow methods and compare the results.
• Size debt with loan-to-value and debt service coverage measures and explain the result to lenders.
• Model an equity waterfall and a landowner profit share in a joint venture under different performance outcomes.
• Interpret IRR, NPV, equity multiple, and profit on cost, and reconcile them when they disagree.
• Run sensitivity and scenario tests and explain what the results mean for risk.
• Write an investment paper with a clear recommendation and stated conditions.

Course Outline