Intermediate Pro Forma: A Value Add Pro Forma

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Start:
May 19 @ 12:00 pm
End:
May 28 @ 2:00 pm
Category:
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Venue:
Live Online
Address:
Online DC United States
Organizer:
ULI Learning
Email:

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May 19, 21, 26, and 28, 12:00 pm – 2:00 pm ET

Course Description

Building on the introductory modeling course, this webinar incorporates additional components into the basic property acquisition model. Students will learn Excel functions and processes that can be utilized to analyze a property that needs renovation or major capital improvement. The project will initially be financed with a transitional loan, and once income stabilizes, a permanent loan will be borrowed.

Each session will start with a conceptual discussion of the task at hand. Students will then receive instructions on how to complete the task.  At the end of the course, students will have a pro-forma model that is designed to analyze a value-added project and may be modified to include more advanced features, such as waterfall structure.

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

Instructor

Charles TuCharles Tu
Professor of Real Estate
Burnham-Moores Center for Real Estate
University of San Diego
San Diego, California

 

 

Tu is the Daniel F. Mulvihill Professor of Commercial Real Estate at the Burnham-Moores Center for Real Estate at the University of San Diego (USD). Tu joined the USD faculty in 2004 and was appointed the academic director of the Master of Science in Real Estate (MSRE) program in 2010. He is also responsible for the curriculum of the undergraduate real estate major. In addition to teaching courses, Tu coaches student teams in local and national competitions.  USD MSRE students won six first-place and two second-place victories in the ARGUS University Challenge in the eight years the event was held.

Tu’s research covers a wide range of topics, including housing valuation, smart growth and the new urbanism, sustainable and green buildings, commercial mortgage-backed securities (CMBS), real estate investment trusts (REITs), multifamily housing, retail shopping centers, and real estate education. He has published in many academic journals and for professional organizations such as the Urban Land Institute (ULI) and the Mortgage Bankers Association (MBA). He currently serves on the editorial board of the Journal of Sustainable Real Estate.

Tu earned his PhD in business administration from the George Washington University (GWU) in 1999. He received the Chartered Financial Analyst (CFA) designation in 2000 and became a LEED Accredited Professional in 2009. He is ARGUS Software Certified (ASC) for ARGUS Valuation-DCF, ARGUS Enterprise and ARGUS Developer. Before joining USD, Tu taught real estate and finance courses at GWU and California State University and Fullerton.

Registration

ULI Members: $395
Nonmembers: $525
Govt./nonprofit ULI member: $350