This course is the second of three that gives you the Excel skills to analyze income property investments. It builds on Excel Skills (A). The course covers completion of the setup for years 3-6 and all of the steps for computing before-tax and after-tax cash flows at sale. You will learn how to use selected Excel formulae for expediting your work and for computing results with internal rates of return and net present values. The course compares the five standard return measures and how to interpret them. You will then learn how to go from single-period leverage analysis to multi-period. The course concludes with how to use the Excel analysis for professional practice.
• To understand and practice the steps for using excel to complete the setup of the multi-period discounted cash flow model for analyzing income property investments.
• To learn critical Excel functions for performing the financial analysis
• To understand how to compute unleveraged and leveraged before-tax and after-tax IRRs
• To understand how to evaluate your returns using the Brookside Square mixed-use project as a case illustration.
1. Review of Analysis Completed in Excel Skills (A)
2. Completing the Pro Forma
3. Completing the Pro Forma Excel Demo
4. Net Proceeds from Sale Calculations: Net Book Value & Capital Gain on Sale
5. Net Proceeds from Sale Calculations Tax Payment
6. Net Proceeds from Sale Calculations Excel Demo
7. Multi-Period Return Measures: Internal Rate of Return
8. Multi-Period Return Measures IRR Excel Demo
9. Multi-Period Return Measures: NPV & Equity Multiple
10. Multi-Period Return Measures NPV Equity Multiple Excel Demo
11. Multi-Period Return Measures: The Impact of Leverage
12. Professional Practice Advice
14. Final Course Assignment
The course will require 3-4 hours of work to be completed.
The course will feature video tutorials, excel training, virtual meetings, etc.
The course will includes quizzes after each video, excel tutorials, and a written essay.
Build Academy will issue course certificates with credits to anyone who successfully completes 80% of the course assessments. Course participants will receive a diploma for completing the eight courses in the Real Estate Finance and Investment program.
We are in the process of accrediting the course with the State of New York for CEUs (Continuing Education Units). At the moment, the course awards international CPDs (Credits for Professional Development).
The course is for real estate professionals who would like to further advance into their career and also for the general public who want to learn the basics of real estate. Successful completion of the previous courses in the program is required.
Kristen Hunter, The Brookside Square Case Study, 2016
Richard B. Peiser and David Hamilton, Professional Real Estate Development: The ULI Guide to the Business, 3rd Edition (The Urban Land Institute: Washington, D.C., 2012)
William Brueggeman and Jeffrey Fisher, Real Estate Finance & Investments, 15th edition (McGraw-Hill, 2015)
William J. Poorvu with Jeffrey L. Cruikshank, The Real Estate Game (Free Press, 1999).
Richard Peiser PhD, Michael D. Spear Professor at Harvard GSD
Richard Peiser has been the Michael D. Spear Professor of Real Estate Development at the Graduate School of Design since 1998. He is also Director of the university-wide Real Estate Academic Initiative created in 2003. He was previously on the faculty at the University of Southern California (1986-1998) as associate professor of urban planning and development, director of the Lusk Center for Real Estate Development, and Academic Director of the Master of Real Estate Development Program that he founded in 1986. His courses: Real Estate Finance and Development, Field Studies in Real Estate, Planning and Urban Design, and Advanced Real Estate Development and Finance offer basic and advanced-level study of real estate at the GSD. He also taught the studios: Alternative Urban Pattern Prototypes: Looking at Pomona/Los Angeles, Newry, Northern Ireland—Revealing History in Urban Reconstruction, and Alternative Futures for the West Lake, Hangzhou, People’s Republic of China, as well as field studies in Texas, California, New Hampshire, Idaho, and Shanghai. He is directing the school’s activities in advanced education for senior real estate executives, notably the six-week Advanced Management Development Program in Real Estate.
Kristen Hunter, DDes Candidate at Harvard GSD
Kristen Hunter is a doctoral candidate in Real Estate Finance and Urban Development at the Harvard University Graduate School of Design (GSD), where she has taught Real Estate Finance, as well as Public and Private Development, since 2010. She received a Master in Design Studies with distinction in Real Estate and Project Management from the GSD, earning the Gerald M. McCue Medal for highest overall academic record and the Ferdinand Colleredo Mansfeld Prize for superior achievement in real estate studies. She also holds an M.A. in Medieval Chinese History from Cornell University and an A.B. cum laude in East Asian Languages and Civilizations from Harvard University. An experienced real estate development manager and LEED AP, Kristen has delivered a variety of infill projects in Boston’s inner city neighborhoods, and currently provides strategic advisory for complex urban redevelopment projects in domestic and overseas markets.
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