Real Estate Development Project Modeling


This course reviews real estate project finance concepts and focuses on the skills required to design and create a model to help finance professionals evaluate a real estate development investment. In the course we review a case study for a mixed-use development project and examine concepts including model design, logic, project timing and various phases and various financing structures. Various intermediate and advanced Excel tools along with helpful keyboard shortcuts will also be covered throughout the course.


Participants should have a basic working knowledge of Excel and the real estate sector prior to taking this course.


8 - 16 hours, depending on the amount of material to be covered.

Learning Topics

Design and Structure a Real Estate Development Project Model

  • Design a clear and logical financial model
  • Lay out all necessary assumptions
  • Model various project phases
  • Use date functions and binary flags to manipulate model cash flows and flexibly manage timing in the model
  • Design a powerful scenario manager
  • Construct financial statements and necessary schedules
  • Calculate important metrics including Net Operating Income, Cash Flow for Debt Service, Levered and Unlevered Free Cash Flow

Incorporate Advanced Capital Structure Features

  • Layer in financing structure that includes a construction loan, revolving credit facility, mortgage, mezzanine debt and equity

Sensitize and Evaluate the Project

  • Explore model optimization and self-auditing techniques
  • Set-up financing sensitivity analysis – revenue reductions, cost overruns, interest rate risk, etc.
  • Incorporate and control model circularity
  • Incorporate a schedule to evaluate the project’s returns
  • Build a strong summary page to display the results
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