REAL ESTATE FINANCIAL MODELINGTwo-Day Intensive: Greater Southern California And Online Via Real-Time Webinar Broadcast

Saturday, April 21 – Sunday, April 22, 2012

University of Southern CaliforniaLos Angeles, CA

Instructors:

Bruce KirschEditor, Real Estate Finance and Investments: Risks and Opportunities, 3rd EditionFounder, Real Estate Financial ModelingAdjunct Faculty in Real Estate at Georgetown University

Bulkeley BanksSenior Director of Financial Modeling, Real Estate Financial Modeling

Model For Success With Real Estate Financial Modeling

About REFM

REFM is the premier financial modeling solutions provider for Excel-based financial spreadsheet models, financial modeling training, and financial modeling consulting for real estate transactions of all types.

REFM provides its customers with the advanced financial modeling knowledge, tools and skills they need to successfully model their transactions and present them with confidence internally and to potential partners, lenders and investors. REFM’s educational training is offered through digital Self-Study Video Tutorials and Live Group Training seminars. REFM also provides Private Consulting Services.

Based in Arlington, VA, REFM was founded by Bruce Kirsch in 2009. Mr. Kirsch is a recognized expert in and top instructor of Microsoft Excel-based financial modeling for real estate transactions. Through REFM, Kirsch has trained both new and experienced real estate professionals in financial modeling from a wide variety

of real estate businesses, organizations and institutions, including private equity, development, brokerage, trade groups and government including:• Vornado Realty Trust• Clark Enterprises• Skanska USA Commercial Development• Alvarez & Marsal• A Middle East Sovereign Wealth Fund• Holland and Knight LLP.

In addition, REFM has given on-campus real estate financial modeling training sessions to Undergraduate, Masters and MBA students from top schools including The Wharton School, The University of Pennsylvania School of Design, Harvard Business School, Harvard Graduate School of Design, Massachusetts Institute of Technology, MIT Sloan, UCLA, USC, Georgetown University, Cornell University, University of Chicago and George Washington University.

3REFM Two-Day Intensive: Greater Southern California

Overview

This is a 2-Day intensive interactive class that teaches basic, intermediate and advanced Excel-based financial modeling skills and techniques specific to a variety of real estate property and transaction analyses. In addition to other topics, this class addresses the financial structuring of partnerships and partitioning of cash flows for profit sharing. Class size is limited to ensure a low student-to-instructor ratio.

Format:

Participants will follow along in Excel on their laptops, perform skills and model-building exercises and have an ongoing Q&A with the instructor.

Included in Course Fee

•Sophisticated, reusable Excel-based models specific to the class sessions

•90 days of streaming video replay

What You Must Bring

Your laptop with Excel 2007 or 2010 installed (Excel 2003 is not OK). Macs are OK if they have Excel for Mac 2008 or more recent. Don’t forget your power cord and mouse.

Registration:

http://www.getrefm.com/public-open-enrollment-training-certification-preparation-c-2

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Saturday, April 21

9:30 AM to 10:00 AM Review of Level 1 Bootcamp

10:30 AM to 1:30 PM Level 2 Bootcamp

1:30 PM to 2:30 PM Lunch Break

2:30 PM to 6:00 PM Level 3 Bootcamp

Sunday, April 22

9:30 AM to 1:00 PM Mixed-Use Residential Condominium Building Development/Housing Subdivision Development Modeling

1:00 PM to 2:00 PM Lunch Break

2:00 PM to 4:30 PM Apartment/Multifamily Acquisition and Individual Unit Renovation Modeling

4:30 PM to 6:00 PM Distressed Commercial Mortgage Note Modeling

Schedule Summary

At A Glance

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Saturday April 21 9:30 AM to 10:00 AM

Review of Level 1 Bootcamp

In this 1/2-hour, review session, participants will review the basics of operating in Excel, as well as advanced techniques, specifically as they relate to real estate analysis. Participants will receive the Level 1 Bootcamp Self Study as part of the course registration and should complete the self-study prior to this class.

Topics covered include*:

Detailed Schedule

• Arithmetic and Rounding• Statistics• Relative vs. Absolute Cell References• Inserting and Deleting Rows and Columns• Function Wizard• Creating Summary Tables• Formatting Numbers• Conditional Cell Formatting• Data Table Lookup Functions• Custom Formatting• Format Painting• Paste Special• Transpose

• Avoiding Error Messages• Dates and Timelines• Conditional Statements• Financial Functions for Compounding and

Discounting• Internal Rate of Return (IRR)• Mortgage Payment Calculation• Formula Auditing• Data Tables for Sensitivity Analysis• Circular References• Keyboard Shortcuts• Best Practices

6Saturday April 21 10:30 AM to 1:30 PM

Real Estate Finance Bootcamp Training (Level 2 Certification Preparation)

In this 3-hour, interactive session, participants learn the foundations of real estate finance as well as advanced techniques and topics. Participants follow along in Excel in real time and perform exercises to ensure they are grasping the lesson and are mastering the concepts and technical skills being taught. Participants are encouraged to ask their questions in real time to have them answered by the Instructor on a rolling basis.

Topics covered include:

•The Time Value of Money Model (includes Exercise #1)

•The Discounted Cash Flow Model (includes Exercise #2)

•Internal Rate of Return (IRR)•Mortgage Payment Calculation•Refinancing/Interest-Only Scenario Payment

Calculation (includes Exercise #3)•Refinancing Case Study•Maximum Loan Amount Calculation•Residual Land Valuation (includes Exercise

#4)•Future Net Operating Income Calculation•Transaction Capital Structures•Financing Development Transactions

•Multiple Equity Investors Discussion (includes Exercise #5)

•Profit Sharing Discussion•Preferred Return, Internal Rate of Return

Waterfall and Promote theory basics

Excel techniques and formulas taught include:

•Compounding and Discounting•Net Present Value (NPV) and XNPV•Internal Rate of Return (IRR) and XIRR•Conditional Statements•Mortgage Payment (PMT)•Principal Payment (PPMT)•Interest Payment (IPMT)•IFERROR•Minimum (MIN) and Maximum (MAX).

7Saturday April 21 2:30 PM to 6:00 PM

Equity Joint Venture Partnership and Waterfall Modeling Bootcamp Training (Level 3 Certification Preparation)

Equity joint venture partnerships are becoming increasingly complex and their proper structuring and modeling increasingly critical as equity capital requirements have grown given today’s more conservative lending environment. Participants follow along in Excel in real time and perform exercises to ensure they are grasping the lesson and are mastering the concepts and technical skills being taught. Topics covered in this 3.5-hour, interactive session, include:• Rationale behind targeting disproportionate returns to the Sponsor• How to achieve disproportionate returns through fees and cash flow partitioning • Preferred Return overview and variations with respect to priority of payment• Preferred Return in context (Payment Types A, B and C)• Nature of Preferred Return (Compounded and not, cumulative and not)• Annual and Monthly Preferred Return Exercises• Waterfall Distribution overview, with Animation• Promote Mechanism overview and modeling• Look-Back Internal Rate of Return (IRR) Method• 3-Tier Waterfall modeling• Double-Promote, 5-Tier Waterfall modeling and Exercise• Alternate Compounding Periods: Monthly, Daily, Quarterly• Sample Partnership Structures• Claw-Back overview and modeling Exercise.

Participants are encouraged to ask their questions in real time to have them answered by the Instructor on a rolling basis.

8Sunday April 22 9:30 AM to 1:00 PM

Mixed-Use Residential Condominium Building Development/Housing Subdivision Development Modeling Training

In this 3.5-hour, interactive session, participants gain a mastery of the skills needed to successfully model for-sale mixed-use condominium building and for-sale housing subdivision ground-up development transactions, including those involving distressed and foreclosed development sites. Participants follow along in Excel in real time and perform exercises to ensure they are grasping the lesson and are mastering the concepts and technical skills being taught.

Topics covered include:• Site and Building Information and Construction Type• Mix Details• Project Timing Elements • Capital Structure• Uses and Sources of Funds• Pre-Sales and Market Sales• Closings, Cash Flows and Returns.

Participants are encouraged to ask their questions in real time to have them answered by the Instructor on a rolling basis.

9Sunday April 22 2:00 PM to 4:30 PM

Apartment/Multi-Family Building Acquisition and Individual Unit Renovation Modeling Training

In this 2.5-hour, interactive session, participants gain a mastery of Excel-based technical financial projection modeling skills for the acquisition and individual unit renovations (with continued operation) of a rental apartment building with ground-floor retail. The principles and skills taught apply equally to duplexes and 1,000-unit complexes. Participants follow along in Excel in real time and perform exercises to ensure they are grasping the lesson and are mastering the concepts and technical skills being taught.

Topics covered include:• Integration of historical property data and existing rent roll into your pro-forma• Modeling of future lease expirations and renewals• Modeling of the unit renovation program• Modeling of operating expense savings gained from the renovation/greening of apartment units• Modeling of acquisition loan financing, residual equity requirement, and permanent take-out loan/refinancing

• Constructing amortization tables and using the VLOOKUP function efficiently• Property Disposition

Participants are encouraged to ask their questions in real time to have them answered by the Instructor on a rolling basis.

10Sunday April 22 4:30 PM to 6:00 PM

Distressed Commercial Mortgage Note Modeling Training

Commercial Mortgage Notes are a less visible but potentially highly profitable way of investing in real estate. Participants follow along in Excel in real time and perform exercises to ensure they are grasping the lesson and are mastering the concepts and technical skills being taught. Topics covered in this 90-minute, interactive session include:• What makes a Commercial Mortgage Note distressed in nature• The various elements that comprise a Mortgage Note investment, including:

• Collateral Value and Note Face Value at original underwriting• Current Remaining Loan Principal• Nominal and Default Interest Rates• Receiver Collections

• How to model the acquisition of a Mortgage Note:• All cash or with acquisition debt• With and without ongoing debt service• With and without cash flows after foreclosure but before final sale

• How to model exit opportunities:• Sale of Note• Partial paydown• Sale of the underlying collateral.

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Bruce Kirsch, Principal and Founder, REFM

Bruce Kirsch began his real estate career at CB Richard Ellis, where he marketed high-rise New York City office buildings for re-development in the top-producing Midtown Manhattan Investment Properties Institutional Group. After CBRE, Kirsch was recruited to be the Director of Acquisitions at Washington, DC-based Metropolis Development Company, a cutting edge local developer of urban infill design-forward residential lofts. While at Metropolis, Kirsch sourced, analyzed and negotiated the acquisition of three privately-owned District of Columbia sites to support the development of 500,000 SF of mixed-use condominium, multi-family and retail product.

After leaving Metropolis, Kirsch engaged in his own urban and suburban condominium and single family detached housing ventures. Kirsch was then selected as one of the two executives to run New York City-based developer and consultant The Clarett Group’s Washington, DC business.

While at The Clarett Group, named one of New York City’s most important real estate development companies by Crain’s New York Business, Kirsch was responsible for analyzing and making urban and suburban site acquisition recommendations for development of trophy-level office, condominium, multi-family and age-restricted multi-family properties in the greater Washington metropolitan area. In addition, Kirsch had significant day to day project management responsibilities for the entitlement, financing and marketing of the company’s existing Washington, DC metropolitan area development portfolio. Kirsch was additionally involved in the marketing and implementation of The Clarett Group’s consulting business.

Mr. Kirsch holds an MBA in Real Estate from The Wharton School of the University of Pennsylvania, where he was awarded the Benjamin Franklin Kahn/Washington Real Estate Investment Trust Award for academic excellence. Kirsch started teaching on real estate topics while at Wharton as the Wharton MBA Real Estate Club’s Co-Vice President of Education. Kirsch was also a member of the Wharton team that won 1st Place at the National Real Estate Finance Challenge case competition.

Prior to Wharton, Bruce performed quantitative equity research on the technology sector at The Capital Group Companies, the manager of the American Funds, the largest family of mutual funds in the United States.

Mr. Kirsch is a Faculty member in real estate at the Georgetown University School of Continuing Studies. Mr. Kirsch graduated with a BA in Communication from Stanford University and has served as an Editor of The Wharton School’s Professor Emeritus Peter Linneman’s Third Edition of Real Estate Finance and Investments: Risks and Opportunities.

Instructors

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Bulkeley Banks, Director of Financial Modeling and Marketing, Instructor

Bulkeley Banks joined REFM in 2010 upon receiving his Masters in Professional Studies in Real Estate at Georgetown University, where he served as the Finance Co-Chair on the Student Advisory Board in Real Estate. At REFM, Mr. Banks develops financial models, spearheads consulting client financial analyses, and oversees marketing efforts. Mr. Banks also serves as an instructor for REFM. Prior to joining the company, Mr. Banks worked at the University of Chicago’s Evolution and Ecology Lab analyzing genetic variation in botany. Mr. Banks holds a BA in Philosophy from the University of Chicago, where he was awarded the Herman S. Dunlap Scholarship.

Real Estate Financial Modeling2055 15th Street North, Suite 203Arlington, VA 22201Tel (703) 577-4110training@GetREFM.com

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