Collateral Debt Obligations and Other Modelling in Real Estate

This page includes various videos and files that are designed to be used before and after a real estate modelling course. The first file, the CDO exercise, is for a structured finance model that demonstrates fundamental issues in setting-up a model and it is described in the article titled “creating a financial model.” The hotel model files are intended for people who are beginning the model. Watching each video and working through each exercise may take a while. But you can take a quick look at the first video and some or all of the exercises related to building a hotel model if you want a big head start on the basic modelling course. The videos and model files after the series of videos for building a hotel model such as the featured real estate model address more advanced issues that involve simulating a portfolio of projects and financing those projects. The advanced models use a percent of time function along with functions to adjust for quarterly analysis. Other difficult issues involve simulating a lease roll for a commercial building and modelling progress payments for a portfolio of residential projects.

Unique Aspects of Real Estate Models on Website

Real estate models are related to project finance and corporate models but involve portfolios of assets (multiple phases of residential homes, commercial buildings combined with shopping centers and so forth). Unique aspects of real estate models included on the website include developing portfolios of projects with different start dates, holding periods and construction profiles using functions, data tables or macros and portfolios of leases with different terms through working with date functions.

Excel File for with Analysis of Collateral Debt Obligations with Probability of Default and Loss of Default Part 1

Featured Real Estate Model with Videos

Model of Project Portfolio (This introduces the model set-up and using the INDEX function for analysis of portfolios
Model of Single Hotel Project (This is a basic model that is analogous to project finance models)
Model of Investment portfolio using data table

This model illustrates some of the tricky issues that arise in real estate .
The biggest problem is reflecting a portfolio of different projects that have different construction start dates, S-curves, sales rates and other items. These problems can be resolved through effective use of date functions where a common time line is established and the start and end date for every project is computed on rows.