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FUNDAMENTAL ANALYSIS I

- BASIC COURSE -

 

FM I

   This course is for the novice investing individual who has a general interest in the investment market. Asset classes may appear to them as a black box, of which, clarity and transparency are crucial requirements before feeling comfortable investing huge amounts of funds in areas such as real estate. For example, if your investment manager tends to passively invest money, it would be desirable for you, the investor, to individually evaluate promised returns quickly, critically and to be able to judge whether the advice of the investing manager may be biased.


   In this course, you will take on the role of an expert investment manager who is in charge of giving recommendations on a real estate investment decisions. In other words, we will simulate a situation in which you have to exercise the most professional approach to achieve the best result. Of course, no previous knowledge is required, as the trainer will guide you through the process step-by-step.


   Beginning with a standard model and based on the use of a case study, we will judge an investment case by creating the Valuation Model and by its outcome reaching results and using these results to advance investment recommendations. To support your understanding of the achieved results every step is explained in detail. Also, the trainer will apply and narrate his own real-life business experiences while going through each step. Using this ‘story telling’ approach makes the topic more relatable as a means to better understand the more technical terminology and situations. The difficulty level will increase as you work through each analysis and more skills are acquired and adapted to work through the tasks.


   Remember all the steps; review the model; substitute some numbers. As an alumni of the ADD!KNOWLEDGE seminar you will conclusively be able to intelligently, confidently perform professional real estate investing just like the experts do!


PRICE: € 1.890,00 (incl. VAT)

LOCATIONS: Berlin, Hamburg, Munich, Frankfurt

DURATION: 2 days à 8 hrs

In english and german language

 

 

Schedule

Schedule Day 1

Schedule Day 2

   

9:00 - 11:00 a.m.

9:00 - 11:00 a.m.

Case study and introduction to valuation

Retail & Project development

a. Real investment prospectus evaluation

a. Retail use

b. Introduction to valuation model

b. Shopping Center Part 1

c. Main determinants of the model

c. Shopping Center Part 2

   

11:00 a.m. – 1:30 p.m.

11:00 a.m. – 1:30 p.m.

a. Evaluate the results

a. Project development Part I

b. Create sensitivities

 

c. Create summary tables

 

d. Extend the model

 

   

--- Lunch break---

---Lunch break ---
   

1:30 - 3:00 p.m.

1:30 p.m. - 3:00 p.m.

a. IRR & returns

a. Project development Part II

b. Compare results to standard model

b. Discussion

c. Discuss the Full model

 

d. Insights from asset management

 
   

3:00 p.m. - 5:00 p.m.

3:00 p.m. - 5:00 p.m.

a. Residential model

- Last tips / Repetition

b. Case study

- Q & A

c. Difference to office model

 

d. Discussion

 

 


 

 

FUNDAMENTAL ANALYSIS II

- ADVANCED COURSE -

 

FM I

   The advanced course for those who have previous knowledge in real estate investment will incorporate a review of basic information as well as additional parts to the Valuation Model on a commercial level, such as tax calculations, ‘promote calculations’, Profit and Loss, Sources and Uses statements, etc. These models are the high-end tools that are used by professional commercial investment managers when considering joint venture  (non-single) arrangements with more than one investor.


    As an absolute beginner, a student’s capacity will be limited during these two training days. Previous knowledge in the field for this course is highly recommended in order to be able to fully grasp all of the content.


PRICE: € 2.290,00 (incl. VAT)

LOCATIONS: Berlin, Hamburg, Munich, Frankfurt

DURATION: 2 days à 8 hrs

Courses offered in English and German language

 

 

 


 

 SPECIAL OFFER FOR STUDENTS 

 

   Nowadays, students face a highly competitive job market and they have to work to give themselves more exposure to proper experience and prospective employers. Classroom attendance and good grades are no longer sufficient enough to get the desired job. Instead, hiring companies are increasingly demanding of their potential future employees to have practical experience

 

   Our course introduces no unnecessary theory but rather purely real life tools and strategies/methods! Useful insights tried and true resources normally used exclusively by the most prestigious of businesses are now revealed and are no longer reserved to a chosen few of privileged people. Simply exclusive know-how now made accessible for everyone, even you! 

 

 

FUNDAMENTAL ANALYSIS

- BASIC COURSE -

 

FM I

   This course is for the novice investing individual who has a general interest in the investment market. Asset classes may appear to them as a black box, of which, clarity and transparency are crucial requirements before feeling comfortable investing huge amounts of funds in areas such as real estate. For example, if your investment manager tends to passively invest money, it would be desirable for you, the investor, to individually evaluate promised returns quickly, critically and to be able to judge whether the advice of the investing manager may be biased.


   In this course, you will take on the role of an expert investment manager who is in charge of giving recommendations on a real estate investment decisions. In other words, we will simulate a situation in which you have to exercise the most professional approach to achieve the best result. Of course, no previous knowledge is required, as the trainer will guide you through the process step-by-step.


   Beginning with a standard model and based on the use of a case study, we will judge an investment by creating the valuation model and by its outcome reaching results and using these results to advance investment recommendations. To support your understanding of the achieved results every step is explained in detail. Also, the trainer will apply and narrate his own real-life business experiences while going through each step. Using this ‘story telling’ approach makes the topic more relatable as a means to better understand the more technical terminology and situations. The difficulty level will increase as you work through each analysis and more skills are acquired and adapted to work through the tasks.


   Remember all the steps; review the model; substitute some numbers. As an alumni of the ADD!KNOWLEDGE seminar you will conclusively be able to intelligently, confidently perform professional real estate investing just like the experts do!


PRICE: € 490,00 (incl. VAT)

LOCATIONS: Berlin, Hamburg, Munich, Frankfurt

DURATION: 2 days à 8 hrs

In english and german language

 

 

Schedule

 

Schedule Day 1

Schedule Day 2

   

9 - 11 o'clock

9 - 11 o'clock

Case study and introduction to valuation

Retail & Project development

a. Real investment prospectus evaluation

a. Retail use

b. Introduction to valuation model

b. Shopping Center Part 1

c. Main determinants of the model

c. Shopping Center Part 2

   

11 – 12.45 o'clock

11 – 12.45 o'clock

a. Evaluate the results

a. Project development Part I

b. Create sensitivities

 

c. Create summary tables

 

d. Extend the model

 
   

--- Lunch break---

---Lunch break ---
   

13.30 - 15 o'clock

13.30 - 15 o'clock

a. IRR & returns

a. Project development Part II

b. Compare results to standard model

b. Discussion

c. Discuss the Full model

 

d. Insights from asset management

 
   

15 - 17 o'clock

15 - 17 o'clock

a. Residential model

- Last tipps / Repetition

b. Case study

- Q & A

c. Difference to office model

 

d. Discussion

 

 

 

 

OUR APPROACH

   To assist you in achieving your goals our courses we will equip you with a Valuation Tool. This tool, with our trainer’s help and comprehensive guidance, will be set up during the course. This Valuation Tool is established as the international renowned ”industry standard“ used to value and evaluate real estate investments. Making use of MS Excel, we will build the model together step-by-step. By doing this, you will learn to consider all the important factors that are crucial for value creation. As a participant in our course, you can be assured that no important detail of this process will be omitted.


   We consider the Valuation Tool to be very useful as it displays and illustrates the whole lifecycle of any real estate investment. You will learn to understand each individual, important factor in the model with regards to its content. We also offer you a comprehensive picture of how real estate business works with all its facets and the mechanisms to which real estate investments are subject to.


 

OUR KNOW HOW

   You will benefit exceptionally from our know-how: As the general intention of a model is to illustrate the reality in a more simple way, we will do the opposite. We will use the Valuation Model to rebuild the reality to complete your knowledge of real estate investments and to give you a better insight into the lifecycle of the investment. By means of this model, we will demonstrate which market participants will appear within the lifecycle of the investment; from the beginning, i.e. the purchase of the property, to the management phase and ending with the disposition. We will emphasize the importance of asset management and its role within the world of real estate.


   Furthermore, as a participant of this course you will benefit from our exclusive business experience which will be integrated into the class model by extending the “standard model“ to our “Extended & FULL model“. We know there are many models and methods to attempt to understand the world of real estate investment. In general, there exist different valuation approaches. These approaches vary from company to company because there are different assumptions and sources available. However our exclusive classes give you the best, practical insight from successful companies. When you complete the course, you can realize the benefit of our exclusive business insights offered only through these courses! We do this by offering insight into the methods and training with the tools that prestigious business use to be effective. With our knowledge and work experience we are able to convey knowledge of the best way to manage real estate investments and how you can do it, too!


 

READ MORE

How would you answer to following questions? What would be your best approach to find the solution?


Case 1) There´s a single residential property with 1000 sqm on the market and you are willing to buy. Which price shall you pay?

 

Case 2) It was recently published that an investor bought a retail portfolio consisting of several shopping centers for rd. € 200mn. How can the paid purchase price be judged? How can we judge the underlying assumptions? (link to the investor report -1.3 mb). 

 

Case 3) Goldman Sachs has successfully executed the IPO of the LEG residential portfolio with more than € 1 bn. made in profit. How was this possible? What can we learn out of this? (link to the IPO prospectus -2.6 mb)

 

   We will analyze all these questions on a fundamental base. All crucial components are taken into consideration to ultimately find the price. Our approach is to go the whole way through the underwriting / financial modeling process. No decisions are made purely from emotions. Our conclusions are solely based on facts from the use of analytical tools.


   However, our approach is consequently ambitious since we take the perspective of an investor, with an internal appraisal perspective– as if we would buy these assets for ourselves. The biggest contrast to the external appraisal perspective is that we emphasize more the importance of the asset management phase, which we are able to take directly from our own experience. Often, external appraisers like banks, audit companies or real estate brokers lack the experience in how the prepared business plan will be executed in reality. After they have done the valuation, the project is finished and only the winning party who manages the portfolio will make the experience how the reality matches with their valuation.


   Let me explain this point in relation to case 3). For example, at the time of the sale of the LEG residential portfolio in 2008, several investment companies as well as brokers and audit companies were assigned to give a recommendation to at which price this portfolio should be bought. Finally this portfolio was sold at rd. € 3,4 bn. The second best bid was rd. about € 3,3 bn. As known the Whitehall Funds / Goldman Sachs won the competition. Several years later, in 2013, Goldman Sachs was able to bring the portfolio back to the market with a total market value of € 4,8 bn. (Side question: Would you have made that purchase?)


   This fact raises several questions. How could such an increase in value be performed? Which measures had to be executed in asset management to achieve a gain in value? Were there only internal factors - i.e. internal factors are these who can be actively influenced by the asset manager or where there some external factors like general market inflation or a market higher demand for such a product so that the value increased on its own? For now, and for our purposes, the most important question is: At the time of the valuation did every appraiser made false assumptions? Wouldn´t it be advantageous if the second highest bidder would have bet € 3,6 bn.? What did he not take into consideration?


   It has to be highlighted that at the time of the acquisition all parties involved did their best to calculate the purchase price; Whether it be the investment companies, banks, real estate brokers, audit companies or even the seller, the public authority. While none of these parties had done something wrong, record shows us that they obviously lacked the appropriate/essential information and some important factors were omitted when doing the valuation. To learn from history and from this very experience, we will give you exclusive advice and a tool to understand the “main drivers” of value creation. At the end, you will be able to not only answer these questions professionally and but also make better investment decisions.

 

ASSET MANAGEMENT

   For external parties, it is often vague who the actors are and what their contributions are in the value chain of real estate. What is the difference between the Property Manager, the Asset Manager and the Center Manager when considering retail use? In general, the asset manager is the representative of the investor and is responsible for managing all processes in order to achieve the return targets. For that, he makes use of contractor, which I will structure strictly into the following groups: Income side: Property Manager, Real estate brokers, Cost side: Facility Manager, technicians (internal and external architects), legal.


   An Asset Manager is in charge of:

- setting up an asset strategy incl. leasing, expenditures and disposition;

- negotiate leases and renewals and keep knowledge updated of the current market situation by the real estate brokers;

- Execute lease contract, i.e. construction and TIs measures in coordination with the technician and architect;

- acquisition and sales support;

- organizing & creating datarooms;

- etc...

For more information visit our course!

 


 

  

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