Pro Forma Fundamentals Certificate

ULI’s Certificate in Commercial Real Estate Pro Forma Fundamentals is designed to provide real estate development professionals with the set of technical skills necessary to make better-informed development, investment and valuation decisions.

The certificate—obtainable upon completion of three online courses—provides entry- to intermediate-level professionals with a fundamental understanding of pro forma analysis through spreadsheet modeling.

The certificate program includes 20 hours of instruction conducted through convenient online programming, affording students the flexibility to learn in a way that works for them.

Certificate Requirements

Students are required to complete the following online courses:

Each course will be offered live online at least two times per year.

Following the completion of each course, a short proficiency exam will be made available for students wishing to earn the certificate. Students must pass all three exams in order to receive the certificate. Students may take an exam up to three times before having to repeat the program.

Pro Forma Modeling with Excel Part I: The Investment Pro Forma

This introductory course is a four-part workshop that guides students through the construction and manipulation of a basic multifamily investment pro forma. The program is geared toward individuals who have never completed a pro forma from scratch. Starting from a blank spreadsheet, students will receive step-by-step direction in the creation of this investment pro forma. At the conclusion of the last session, participants will have completed their own investment pro forma and will have gained a new appreciation for how valuation and investment decisions are made.

Each session of the workshop is designed to build on the previous one, and each participant will have a completed pro-forma model at the conclusion. Participants are expected to use learned skills to independently build individual sections of the model. However, the completed stages will be distributed at the end of each session.

Take the Class
This course is now available as an on-demand online course. Learn wherever and whenever is convenient for you!

Register for the On-Demand Webinar

You will learn:

  • How to identify the relevant project data required to begin crafting a pro forma.
  • The basic to intermediate Excel skills needed to model an industry-accepted pro forma.
  • Basic components of an investment pro forma: inputs, amortization, pro-forma income cash flows, and valuation.
  • How to construct an amortization table to accommodate three loan types: constant payment mortgage (CPM), interest only (IO), and custom amortization.
  • How to properly format a pro forma for an investment template.

Duration: Four online course sessions of two hours each.

Cost:

  • ULI member: $375
  • Non-member: $495

Pro Forma Modeling with Excel Part II: Rent Rolls and Construction Draws

Building on the first pro-forma modeling course, this four-part online program will help further build the participants’ financial modeling and Excel skills. Students will learn more advanced Excel functions for valuation, amortization, rent roll, construction and permanent financing, construction draws, and cash flows.

In each session, students will receive concise direction in spreadsheet construction. At the end of the last session, students will have a complete pro-forma model that can be scaled further to include waterfalls, stochastic processes, portfolio analysis, and visual displays of results.

Each session of the workshop is designed to build on the previous one. Participants are expected to use learned skills to build individual sections and maintain the pace of the workshop. However, as in the first course, the completed stages will be distributed at the end of each session.

Take the Class
This course is now available as an on-demand online course. Learn wherever and whenever is convenient for you!

Register for the On-Demand Webinar

You will learn:

  • Advanced Excel skills required to build a development pro forma for a multifamily project of any size.
  • Graphically demonstrate the construction draw.
  • Develop the methodology for drawing construction dollars using an S-curve.
  • How to quantify project cash flows.
  • Additional components to a development pro forma: rent roll, construction financing, construction draw, permanent financing and scenario analysis to quantify risk.

Duration: Four online course sessions of two hours each.

Cost:

  • ULI member: $375
  • Non-member: $495

Pro Forma Modeling with Excel Part III: Investment Waterfall Distributions

This third modeling course introduces students to the theory and practical construction of “waterfalls” for existing and new Microsoft Excel spreadsheet models.

The waterfall is the method of distributing profits among partners within a transaction. In more complex transactions, profits are not distributed pari passu. (Pari passu is the proportional distribution of profits according to the percentage of capital invested—for example, with an investor who provides 80 percent of the capital receiving 80 percent of the profit.)

During the first session, students will gain a theoretical understanding of what a waterfall is, as well as be exposed to the Microsoft Excel functions required to construct a waterfall. In the second session, students will construct a waterfall from a blank spreadsheet that can be incorporated into all existing spreadsheet models.

Take the Class
This course is now available as an on-demand online course. Learn wherever and whenever is convenient for you!

Register for the On-Demand Webinar

You will learn:

  • Basic types of equity partnership distributions.
  • The key inputs to the waterfall distribution from a joint venture agreement.
  • How to model variable-return distributions to the project sponsor and equity investor.
  • Advanced valuation formulas in Excel.
  • How to “bolt on” the waterfall to all existing pro forma models.

Duration: Two online course sessions of two hours each.

Cost:

  • ULI member: $215
  • Non-member: $295

Real Estate School 2015

Sign up for one or more of the following courses in real estate finance and development--all count toward a ULI Professional Development Certificate. Click on a course below to register online, or download the course catalog.

January 26-28, 2015

January 29-31, 2015

February 2-4, 2015