So you want to run Monte Carlo simulations in Excel, but your project isn’t large enough or you don’t do this type of probabilistic analysis enough to warrant buying an expensive add-in. Well, you’ve come to the right place. Excel’s built-in functionality allows for stochastic modeling, including running as many simulations as your computer’s processing power […]
A childhood friend called me this week and asked for a favor. He is the lender on a private real estate loan and was wanting a way to personally service the loan. Namely, he needed a tool to issue monthly invoices, track the principal vs interest paid in each month, and calculate the current loan […]
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 […]
In my experience, using the SUMPRODUCT function in Excel to calculate weighted average is one of the most oft-used Excel techniques in real estate financial modeling. I learned this technique on day one of my first real estate internship and I continue to use it at least once a week to this day. So in […]
I’ve fielded a handful of Cash-on-Cash (CoC) return questions of late. So, I thought it would be worthwhile to write a post on what the Cash-on-Cash return metric tells me about a potential real estate investment. This article is a primer, if you will, on when this metric is helpful to use in your analysis […]
Over the years, Michael and I have built and shared numerous real estate equity waterfall models, all multi-tiered and most with internal rate of return (IRR) hurdles. And as our readers have downloaded those models, I’ve received dozens of requests for an equity waterfall model with a simpler partnership structure. This model seeks to be an […]
We received a question from an A.CRE reader this week that I thought warranted a thorough response. The question was, and I paraphrase, “I am an LP looking for models to help vet syndication deals. Do you have any models that can be used to evaluate a deal from the perspective of an LP, as […]
We recently shared a new modeling test to our library of real estate case studies entitled UK Debt Advisory Firm Modeling Test. In that case study, the test asked the real estate professional to analyze the returns of three different debt options. Two of those debt options include a type of mortgage called a linear […]
At A.CRE, we’ve built dozens of custom GPTs for internal and external purposes. Some of the GPTs have general application, while others are custom GPTs specifically for commercial real estate. And among those custom GPTs specifically for CRE, we’re working to build the world’s largest library of real estate analyst GPTs. A few months ago, […]
In our glossary of commercial real estate terms, we recently answered the question: what is debt yield? As a follow up to that entry, I thought I’d expand on the concept of debt yield by showing you how lenders use debt yield to come up with the appropriate mortgage loan amount. Lenders and Sensitivity to Loan […]
Some of you are working to land that first professional job in real estate. Others are hoping to leverage existing education and industry experience to move up. Regardless of where you are, the content, format, and style of your real estate resume is essential to success. In this post, I’ll discuss what makes real estate different from other […]
For our 12th case study, we offer a challenging opportunity with a value-add retail case study. These case studies are meant to help you practice mastering real estate financial modeling. The Maplewood Plaza case study puts you in the role of an Acquisition Analyst at Legacy Retail Partners, a family office based in Milwaukee, WI. […]
Capital for commercial real estate investments is generally sourced from one or more of the following buckets: public equity, public debt, private equity, or private debt. In my experience, few people fully understand these four buckets of capital, let alone how the various capital sources work together to get a real estate deal done. In […]
Real estate consulting jobs include work in a variety of areas such as appraisal and valuation, entitlement services, portfolio strategy, enterprise M&S, workplace strategy, location footprint strategy, site acquisition and analysis, among others. Professionals who take positions at real estate consulting firms typically possess expertise in a specialized area of real estate for which they’re hired […]
This is the 9th real estate case study in a series of commercial real estate case studies shared by A.CRE. These case studies are meant to help you practice mastering real estate financial modeling. In this case study, you play the role of a job candidate interviewing for a Capital Markets Associate role and must […]