3176 students


This is the first course in the 16-course Accelerator. In this case-based course, you will learn to value income-producing real estate using the Direct Capitalization method.

Regardless of your role in real estate, you will use the concepts, skills, and techniques learned in this course almost daily.

In this course you will:

  1. Learn to build out a static real estate pro forma for a multifamily investment, modeling from Gross Rental Revenue to Net Operating Income
  2. Derive an appropriate capitalization rate (“cap rate”) from a competitive set of similar properties in the market
  3. Combine the net operating income and cap rate to arrive at an estimated value for the investment
  4. See how the principles learned in this course apply in the real world


You have recently been hired by A.CRE Advisors as part of their multifamily acquisitions team, underwriting prospective investments. Your boss has called you into his office to discuss an Offering Memorandum (“OM”) he just received from a broker, East Lang Ellis, for Foles Tower – a 300 unit, Class A, multifamily high rise in the Center City submarket of Anycity, USA.

Your boss would like you to put together a basic real estate financial model using the information provided in the OM and the supplemental documents that have been uploaded to the broker’s “War Room”. He is requesting you use both the direct capitalization and discounted cash flow methods to assess the value of the opportunity.


  • Multifamily; concepts apply to all property types


  • While we recommend using Microsoft Excel, as that is the industry standard, this course will work with most other spreadsheet software such as Google Sheets and OpenOffice Calc
  • This course was built using the Google Chrome browser, thus we recommend you use Google Chrome for optimal view experience
  • This course is best taken on a desktop computer, although the platform is compatible with tablet and mobile devices


  • The course assumes you have at least a basic proficiency working with Microsoft Excel


User Avatar Spencer Burton

Spencer Burton is currently President and member of the founding team at Stablewood, a data-infused multi-strategy institutional real estate investor that combines the best of traditional real estate investment with proprietary data analytics and machine learning. Spencer has over 20 years of real estate experience, both as a fiduciary and principal. Over his career, Spencer has helped close $5+ billion and underwrite $30+ billion of commercial real estate at some of the largest institutional real estate firms in the world. He has worked in land brokerage, residential development, commercial real estate acquisitions, debt production, and Investment Manager for a $60 billion institutional real estate investor. Spencer is also the co-creator of AdventuresinCRE.com, the industry’s go-to place for commercial real estate financial modeling, education, and career advancement resources. He is also the author of various AI-powered CRE tools and an expert on the practical application of generative AI in commercial real estate. Spencer Burton holds a Bachelor of Arts in International Affairs with an emphasis in economics from Florida State University and a Masters in Real Estate with a concentration in finance from Cornell University.