Achieving a stabilized Net Operating Income (NOI) in real estate requires careful planning and sound execution. One element that can cause confusion is when underwriting capital reserves. Should they go above the line (i.e., as an Operating Expense) or below the line (i.e., as a Capital Expenditure)? And what is the purpose of the Capital […]
Recientemente, recibimos una pregunta muy interesante en el “Q&A (Preguntas y Respuestas)” del Acelerador de Modelos Financieros Inmobiliarios de A.CRE, dicha pregunta estaba relacionada con el uso de las funciones PAGOINT Y PAGOPRIN de Excel. De modo que, me gustaría aprovechar la oportunidad para discutirlo. En primer lugar, debo decirte que el “Q&A” es un […]
We recently received an intriguing question in the Q&A section of the A.CRE Real Estate Financial Modeling Accelerator regarding the uses of the IPMT and PPMT Excel functions. As such, I’d like to take the opportunity to discuss it. First of all, I must tell you that the Q&A is a fascinating and great learning […]
In this article, we explore Low-Income Housing Tax Credit (LIHTC) investments, a key component in the affordable housing sector. Established to encourage private investment, the LIHTC program offers tax credits to developers for creating and rehabilitating affordable rental housing. To help you better understand this investment opportunity, we’ll we examine some of the historical context, […]
Una de las oportunidades de inversión que reviste mayor riesgo son los “Desarrollos Inmobiliarios”, de modo que, invertir en este tipo de negocio inmobiliario realmente valdrá la pena en la medida que se obtenga un beneficio acorde con el riesgo que representa. En este sentido, ¿Alguna vez te has preguntado cómo se mide el beneficio […]
Real estate developments carry inherent risks, making them one of the most challenging investment opportunities. However, the potential for profit can justify the risks involved. Have you ever wondered how to assess the profit potential behind a real estate development? How can you determine if investing in real estate development is worthwhile? In this article, […]
Return metrics are some of the key components for assessing commercial real estate investments. They give professionals an insight into the potential gains and risks associated with various properties. But which return metrics are most useful for all the various investment scenarios or risk profiles? Or, is there a single return metric that can guide […]
La calidad del mensaje (Prompt) que se transmite a la inteligencia artificial (IA) es crucial para obtener los resultados deseados en cualquier trabajo, en este sentido, comunicar un prompt en el análisis Financiero inmobiliario, bien estructurado, a ChatGPT es sinónimo de una experiencia satisfactoria y de resultados eficientes. Pero, ¿cómo estructurar ese mensaje? Bien, en […]
We recently received an intriguing question in the Q&A section of the A.CRE Real Estate Financial Modeling Accelerator regarding the calculation of untrended and trended returns. As such, I’d like to take the opportunity to discuss it. First off, it’s worth noting that the Q&A is an engaging educational component of the A.CRE Real Estate […]
Una de las funciones que regularmente hacemos en A.CRE, es dar a conocer el perfil que ofrecen las universidades para la formación de profesionales inmobiliarios. De hecho, en nuestro sitio web puedes encontrar más de 50 perfiles de universidades en los Estados Unidos y Canadá, como Harvard, MIT, Cornell, UT, USC, Rice, etc. Me imagino […]
The incentives offered to the tenants of a real estate property constitute another of the adjustments that real estate professionals must underwrite to achieve a stabilized NOI, but beyond the adjustment, the concessions represent the cost of reaching a certain occupancy figure for the property. For example, when we are underwriting “Total Rental Income” on […]
Los incentivos que son ofrecidos a los inquilinos de una propiedad inmobiliaria, constituyen otro de los importantes ajustes que deben suscribir los profesionales inmobiliarios para alcanzar un NOI estabilizado, pero más allá del ajuste, las concesiones representan el costo de alcanzar una determinada cifra de ocupación de la propiedad. Por ejemplo cuando estamos suscribiendo el […]
Considerar la posible pérdida por desocupación, así como la falta de pago de los inquilinos en una propiedad inmobiliaria que genera ingresos, representa otra de las decisiones clave de suscripción que los profesionales inmobiliarios deben tomar cuando están transitando el camino hacia un NOI proforma (Estabilizado). En el siguiente ejemplo de proforma observarás los ítems […]
Considering the potential vacancy loss as well as tenant default on an income-producing real estate property represents another key underwriting decision that real estate professionals must make when transitioning to a pro forma (Stabilized) NOI. In the following pro forma template, you can see the “Actual Vacancy and Credit Loss” and “General Vacancy and Credit […]
The calculation of stabilized Net Operating Income for a property is synonymous with building a stabilized proforma. This modeling process starts by estimating revenues and then the expenses, which means we must adjust the anticipated revenues minus the given expenses to evidence normally stabilized operations of the property. It sounds simple enough but the precise […]