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REFM Training Overview Real Estate Financial Modeling (REFM) Training enables you to master basic and advanced concepts and techniques of Microsoft Excel, real estate finance, and real estate transaction and partnership financial modeling by going through Excel models line-by-line and performing skills exercises. All training is exclusively Microsoft Excel-based and is delivered assuming that each participant will be following along on their own computer. All training includes reusable, fully-unlocked Excel files. Benefits of training with REFM include: Improved analysis capabilities, quicker work turnaround and fewer mistakes Increased confidence in ones Excel skills Improved financial modeling knowledge, understanding and customization capabilities Sharpened presentation of a transaction's financials Heightened credibility internally and with potential partners, lenders and investors Additional benefits specifically for University students include: Stronger performance in internship and job interviews Sharpened presentation of case study financials Stronger performance on academic assignments and exams. Past Training Clients Include Vornado Realty Trust Clark Enterprises Skanska USA Commercial Development Alvarez & Marsal A Middle East Sovereign Wealth Fund Holland and Knight LLP.

Table of Contents Identifying Risks and Opportunities in Real Estate Training (1 hour) Basic Building Physical and Economic Characteristics and Basic Zoning Terminology Training (1 hour) Demystifying the Excel Pro-Forma: What It Is and How You Can Begin To Master It Training (2 hours) Excel For Real Estate Bootcamp Training (3 hours) Real Estate Development Modeling Basics Training (1 hour) Real Estate Finance Bootcamp Training (3 hours) Mixed-Use Apartment/Multi-Family Building Development Modeling Training (4 hours) Mixed-Use For-Sale Condominium Building Development/For-Sale Housing Subdivision Development Modeling Training (4 hours) Mixed-Use Office/Industrial Building Development Modeling Training (4 hours) Apartment/Multi-Family Building Acquisition and Individual Unit Renovation Modeling Training (4 hours) Customization of a Commercial/Retail Asset Cash Flow Output From ARGUS DCF Training (1.5 hours) Distressed Commercial Mortgage Note Modeling Training (1.5 hours) Equity Joint Venture Partnership and Waterfall Modeling Bootcamp Training (4 hours) Private Equity Fund Excel Modeling Training (2 hours) About REFM and Instructor Biographies 4 4 5 5-6 6 7 8 9 10 11 12 13 14 15 16-19 3

Identifying Risks and Opportunities in Real Estate Training This 1-hour session teaches participants about the real estate cycle and how it creates risks and opportunities related to acquiring, operating and developing commercial real estate. Participants are encouraged to ask their questions in real time to have them answered by the Instructor on a rolling basis. Basic Building Physical and Economic Characteristics and Basic Zoning Terminology Training This 1-hour session teaches participants about the basics of the physical and economic characteristics of buildings as they relate to real estate investment. Also covered is a primer on basic zoning terminology and calculations as they relate to real estate analysis. Participants are encouraged to ask their questions in real time to have them answered by the Instructor on a rolling basis.

Demystifying the Excel Pro-Forma: What It Is and How You Can Begin To Master It Training This 2-hour session breaks down the real estate pro-forma into its essential components, analyze the pieces individually in easy-to-understand language, and then re-assembles them into the original whole. The relationships between the constituent parts are explained so that participants will intimately understand the entire spreadsheet and its various functions. Participants are encouraged to ask their questions in real time to have them answered by the Instructor on a rolling basis. Excel For Real Estate Bootcamp Training In this 3-hour, interactive session, participants learn the basics of operating in Excel, as well as advanced techniques, specifically as they relate to real estate analysis. 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 *: 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 5

* All Topics Include Exercises Excel techniques and formulas taught include: SUM ROUND, ROUNDUP, ROUNDDOWN MAX, MIN, AVERAGE, MEDIAN Cell Anchoring using Dollar Signs EOMONTH, EDATE, DATEVALUE IF, AND, OR, and combinations thereof SUMIF, SUMIFS COUNTIF, COUNTIFS VLOOKUP, HLOOKUP IFERROR RATE PV, FV NPV and XNPV IRR and XIRR PMT, PPMT, IPMT

Real Estate Development Modeling Basics Training This 1-hour session teaches participants the fundamentals of financial modeling specifically for real estate development transactions. Participants are encouraged to ask their questions in real time to have them answered by the Instructor on a rolling basis.

Real Estate Finance Bootcamp Training 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). 7

Mixed-Use Apartment/Multi-Family Building Development Modeling Training

In this 4-hour, interactive session, participants gain a mastery of technical financial projection modeling skills for the ground-up development of a mixed-use rental apartment building, including 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 Apartment Unit and Mix Details Project Timing Elements Capital Structure Uses and Sources of Funds Cash Flows and Returns Capitalized Valuation.

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

CFA Institute has approved this program, offered by Real Estate Financial Modeling, LLC, for 3.5 CE credit hours. If you are a CFA Institute member, CE credit for your participation in this program will be automatically recorded in your CE Diary. 8

Mixed-Use For-Sale Condominium Building Development/For-Sale Housing Subdivision Development Modeling Training

In this 4-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.

Mixed-Use Office/Industrial Building Development Modeling Training

In this 4-hour, interactive session, participants learn how to model the ground-up development and sale of a commercial (office or industrial) building (with a ground-floor retail component for office building) and income-producing parking component. 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 Project Timing Elements Capital Structure Uses and Sources of Funds Cash Flows and Returns Capitalized Valuation

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

CFA Institute has approved this program, offered by Real Estate Financial Modeling, LLC, for 3.5 CE credit hours. If you are a CFA Institute member, CE credit for your participation in this program will be automatically recorded in your CE Diary. 10

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

In this 4-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 o 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.

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Excel-based Customization of a Commercial/Retail Asset Cash Flow Output from ARGUS DCF Training

While ARGUS DCF is able to generate future cash flow projections based on market factors and tenant rollover assumptions, a DCF valuation and sensitivity analyses are more easily controlled by using Excel. Additionally, a customized presentation of the property valuation and investment returns is more appropriate to individual deals and partnerships. 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: How to quickly build a live Excel-based pro-forma valuation model that links directly to a 11-year cash flow Excel-based output from Argus How to construct data table-based Sensitivity Analysis using discount rate and terminal capitalization rate as variables How to construct a leveraged cash flow analysis including both a Senior Loan and a Mezzanine loan How to construct and run data table-based Sensitivity Analyses on Internal Rate of Return by varying: o Purchase Price vs. Terminal Capitalization Rate o Purchase Price vs. Loan-to-Cost o Loan-to-Cost vs. Interest Rate. Participants are encouraged to ask their questions in real time to have them answered by the Instructor on a rolling basis. 12

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: o Collateral Value and Note Face Value at original underwriting o Current Remaining Loan Principal o Nominal and Default Interest Rates o Receiver Collections How to model the acquisition of a Mortgage Note: o All cash or with acquisition debt o With and without ongoing debt service o With and without cash flows after foreclosure but before final sale How to model exit opportunities: o Sale of Note o Partial paydown o Sale of the underlying collateral.

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Equity Joint Venture Partnership and Waterfall Modeling Bootcamp Training

Equity joint venture partnerships are becoming increasingly complex and their proper structuring and modeling increasingly critical as equity capital requirements have grown given todays 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 4-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 Claw-Back Exercise.

Participants are encouraged to ask their questions in real time to have them answered by the Instructor on a rolling basis. 14

Real Estate Private Equity Fund Excel Modeling Training

In this two-hour, interactive session, participants gain a mastery of technical financial projection modeling skills for the raising of a real estate private equity investment fund. Topics covered include modeling a typical investments net cash flow, rolling up multiple investments to the Fund level, modeling of Management Fees and partitioning of cash flows to the Limited and General Partner ownership interests. 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: Big Picture Fund Basics Terminology General Legal Structure Desirability of Proportional Financial Reward General Financial and Incentive Structure Other Potential Structure Characteristics Modeling a Prototypical Individual Investment For Replication Modeling at the Fund Level Considerations for Running Sensitivities.

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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. REFM is a member of the District of Columbia Building Industry Association and the Northern Virginia Building Industry Association, and a program-level participant in the CFA Institute Approved-Provider Program.

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Instructor Biographies 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 Citys 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 multifamily 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 companys existing Washington, DC metropolitan area development 17

portfolio. Kirsch was additionally involved in the marketing and implementation of The Clarett Groups 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 Clubs 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.

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Bulkeley Banks, Director of Financial Modeling and Marketing, Instructor

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

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