Intermediate Pro Forma: A Value Add Pro Forma

Online: On-Demand Course

Intermediate Pro Forma: A Value-Add Pro Forma

Building on the introductory pro forma modeling with Excel course, or your own basic understanding of pro forma modeling, this course moves beyond your understanding of a basic property acquisition pro forma by introducing Excel functions and processes that can be used to analyze a property that needs renovation or major capital improvement. The project will take you through a case that will ask you to model initial financing using a transitional loan, and once income stabilizes, you will model financing with a permanent loan.

Each session starts with a conceptual discussion of the task at hand and you will receive instructions on how to complete the task. At the end of the course, you will have a pro forma model that is designed to analyze a value-added project. This model is yours to keep and may be modified (such as in the advanced pro forma course) to include more advanced features, such as a waterfall structure for modeling investment returns.

Overview

This course will build on your basic understanding of pro forma modeling with Excel to walk you through the creation of a pro forma value-add project. Your work will be structured into three parts:

  • Introduction
  • The Renovation and Lease-up Stage
  • The Stabilization Stage

By the end of the course, you will have a pro forma model that is designed to analyze a value-added project.

The project will take you through a case that will ask you to model initial financing using a transitional loan, and once income stabilizes, you will model financing with a permanent loan.

Each session starts with a conceptual discussion of the task at hand and you will receive instructions on how to complete the task. At the end of the course, you will have a pro forma model that is designed to analyze a value-added project. This model is yours to keep and may be modified (such as in the advanced pro forma course) to include more advanced features, such as a waterfall structure for modeling investment returns.


This course counts toward the Pro Forma Fundamentals Certificate.

Learning Objectives

You will complete this course able to:

  • Understand how and why a value-add pro forma is used.
  • Create a value-add pro forma.
  • Understand and model the project stages from renovation and lease-up to stabilization.
  • Understand basic sensitivities related to assumptions of the pro forma.

Curriculum

The course will include:

Introduction

  • Review of a Basic Model
  • Additional Components of a Value-added Project

The Renovation and Lease-up Stage

  • Renovation Budget and Schedule
  • Bell-shaped Curve for Construction
  • Lease-up Period
  • Transitional Financing
  • Floating-rate vs. Fixed-rate
  • Interest during Construction

The Stabilization Stage

  • Refinancing
  • Underwriting Criteria
  • Cash Out
  • Timing Issues
  • Additional Features of Permanent Financing
  • Interest-only Period
  • Prepayment Penalty


ULI Learning is provided by the Urban Land Institute.

Topics

  • Pro Forma Modeling
  • Finance and Investment

Experience Level

  • Intermediate

This course is designed for intermediate-level participants who have some experience with the topic and are looking to deepen and extend their knowledge and insights.

Career Stage

  • Mid-Career Real Estate Professionals

This course is designed for those industry experience looking to build and extend their knowledge base to progress along a career path.

Course Format

This course will teach you how to develop your own pro forma for value-add development.  You will need a computer with Excel to complete this course. 

Pricing

  • ULI Members: $395.00
  • ULI Members (Government/NonProfit/Academic): $350.00
  • Non-Members: $525.00
Components visible upon registration.