This module will provide students with a hands-on approach to creating a Financial Model for a Real Estate Investment Property. It will cover a variety of topics, including Cash Flow Analysis, Internal Rate of Return (IRR) calculations, and Cash Flow Forecast. During this course, students will also be exposed to real-world examples.
Real Estate Investment Property Models
There are many ways to use Real Estate Investment Property Models to create an analysis for your real estate investment. Real estate investment property models can be created in Excel. These models can be tied to real estate rental or sales assumptions, average monthly rents, and the amount of equity invested in a property.
Internal Rate of Return (IRR)
The Internal Rate of Return (IRR) of an investment property can be an important part of your investment decision. The IRR is the percentage return on investment (ROI) a property generates over a specific period of time. In other words, it gives you a complete picture of the profitability of the property. You can use this figure to compare one investment property to another, or to compare the IRR of different types of properties.
Cash Flow Forecast
When you first start your investment property business, it can be difficult to create an accurate cash flow forecast. This is why it is important to understand the expenses you will incur in operating the property and then break these expenses down into separate categories. Missing one expense can have a big impact on your cash flow.
Rent analysis spreadsheet model
When analyzing rental properties, a spreadsheet is a valuable tool. You can easily import data from multiple apps and maintain an organized database. Using a spreadsheet also helps you track expenses and potential profitability.