Modul Advanced Real Estate Financing

Module No. M-REM4-007
Spring Term

The goal of the module is to transfer profound understanding of advanced concepts of real estate financing as well as extensive insight in the theoretical fundamentals and practical applications of real estate cash flow modelling using MS Excel.

“Advanced Real Estate Financing” builds on basics in finance and real estate taught in the Bachelor programme and will provide thorough insights in advanced concepts in Real Estate Financing. The module also provides MS Excel skills and in particular (cash flow) modeling skills which can be used in order to solve numerous business decision problems.

1st Course: Advanced Methods of Real Estate Financing
Course No. L-REM4-012

The course “Advanced methods of real estate financing” introduces students to the main concepts and instruments of real estate financing. After an introductory presentation of real estate financing products, the course provides extensive insight in the concept of real estate private equity, non performing (real estate) loans and project financing. Given the current turmoil on financial markets and the consequences for the real economy, a strong focus is placed on real estate securitization and real estate in the context of global capital markets. The instruments presented in the course are of high practical importance for the whole real estate industry. The students are given the knowledge to evaluate the advantages and limitations of these techniques and products.

2nd Course: Real Estate Cash Flow Modeling
Course No. L-REM4-013

The course “Real Estate Cash Flow Modelling” aims at teaching students how to use Excel in a sophisticated way. The application of miscellaneous Add-ins and Macros will be elaborated as well as certain pitfalls outlined. Theoretical basics are presented using case studies in the area of real estate investment and financing (as well as fundamentals in risk management). Furthermore, cash flow models are structured, cost of capital integrated and varied according to different debt financing methods. The VBA basics section offers an introduction to programming of macros and elaborates on VBA security, useful VBA-tools and application possibilities and limits. The reporting section deals with graphical illustration, sorting and filtering and pivot tables.