In this post, I’d like to show you how to partition the internal rate of return of your real estate investment in Excel. I also throw in a quick equity multiple partition, to highlight how the time value of money affects your returns. I’ve recorded a short Watch Me Build video tutorial to illustrate the […]
Since starting A.CRE, Michael and I have fielded email after email requesting a more structured real estate financial modeling training program on the site. Over the years, we’ve covered hundreds of real estate modeling topics in our blog, published hours of video, and shared 50+ real estate Excel models in our Library. Nonetheless, no matter how […]
We’ve received numerous requests over the years for a Self Storage Development Model in Excel. With strong investment and development activity in this niche property type, I recognize a self storage model on A.CRE is long overdue. But with so many other projects on our plates and limited experience with self storage, we just hadn’t […]
The Cornell Baker Program in Real Estate is an immersive, two-year Ivy league graduate real estate education with the rigor, structure, and academic profile of an MBA while focused entirely on Real Estate. Located at Cornell University’s picturesque campus in Ithaca, NY, the program is jointly administered by the College of Architecture, Art, and Planning and the School of Hotel […]
One of the reasons Mike and I blog, is to force ourselves to be continually learning. I built the first version of my real estate waterfall model, because I wanted to better understand the mechanics of modeling an equity waterfall with IRR hurdles. Mike started his Understanding Leases Series, because there were nuances of modeling complicated (and […]
We have a few stochastic modeling tools for real estate on the website, but none as robust as this Apartment Acquisition Model with Monte Carlo Simulation Module. I originally built the model in 2016 by taking my standard apartment acquisition model, and assigning probabilities to various assumptions. I then added a Monte Carlo Simulation module […]
At A.CRE, we receive thousands of emails every month from our readers, users of our financial models, and our Accelerator members. The topics of those emails range from career advice, consulting requests, and questions about the Accelerator, to technical issues, bug reports, and modeling questions. And while our administrative staff does a phenomenal job of […]
So a question recently came in around why a commercial real estate investor would use the Yield-on-Cost metric to assess a value-add real estate investment. This question came on the heals of several other questions also related to development spread (i.e. investment spread) and market cap rate. So I thought I’d put a post together […]
We’ve spent a lot of time here discussing and sharing different real estate models, and we’ve received a ton of feedback from our readers as a result. In some of that feedback we’ve received, several people have asked what period and date rows I prefer to use and how I setup a brand new model. […]
As we continue to build out our A.CRE 101 series and our Glossary of Commercial Real Estate terms, we’ve started to supplement these initiatives with short (<30 second) video clips on how to do various CRE calculations and modeling tasks in Excel. You can think of these 30 second tutorials as bite-sized lessons in real […]
In recent months, I’ve been working on an advanced real estate investment amortization table with interest-only capability, fixed and variable interest rates, multiple interest calculation methods (i.e. 30/360, Actual/Actual, Actual/365, Actual/360), monthly and annual periods, duration calculation, lender yield calculation, average life calculation, static and dynamic debt service payments, and more. This module is meant […]
For several years now, our library of real estate models has been lacking a robust ground-up apartment development model. Sure, our All-in-One (Ai1) model has the capability to model multifamily development deals, but it’s more a generalist tool than a specialized one. As a result, I’ve found it wanting when used to model developments. Update: In version […]
A few years ago, I recorded my screen as I built a 3-tier real estate equity waterfall model. What I didn’t mention in that Watch Me Build video, is that the kind of waterfall I built is colloquially called a European-style equity waterfall. And while that type of waterfall is extremely common, both in the […]
A question came up recently in the A.CRE Accelerator’s real estate waterfall modeling course regarding how to model GP Catch Up (i.e. Sponsor Catch Up) and LP Clawback provisions. I put together a quick video tutorial in response to that question, and in doing so I realized I had never shared to A.CRE a real […]
As many of you recall, in 2015 I set out to build an Excel alternative to the widely-used (and now discontinued) ARGUS DCF. With career moves and a lot of other A.CRE-related side projects, this undertaking has been slow going. Alas, in 2016 I released the first beta-version of the model – my All-in-One (Ai1) […]