In the third part of this data table series, I’d like to show you how you can create data tables with multiple return metrics within each cell of the data table as shown in the image below. The way to do this is actually quite simple. If you are unfamiliar with how to create […]
Back when we first started this website, I wrote a post with a downloadable excel file that walks the reader through how to create a one variable data table. This is a long overdue follow up to that post to show you how to create a two-variable data table. This will be part 2 of […]
Spencer and I are excited to introduce the A.CRE MBA Real Estate Profile series. This series is intended to provide prospective MBA students with a glimpse into some of the world’s top MBA real estate programs and what they have to offer those who intend to focus on commercial real estate while pursuing their MBA. The series […]
In this post, I’d like to share a method, that with a little practice, will enable you to quickly do cap rate math in your head; whether it’s quickly figuring out what the sale or purchase price would be of a property based on the NOI and cap rate or inversely, figuring out what the […]
This is a dynamic debt amortization module that gives the user the capability to model a loan with an interest only period up front and an amortizing floating rate debt repayment period once the interest only period is over. This module also allows the user to model other more straightforward scenarios such as an interest […]
After posting the construction draw module a few weeks back that demonstrates how to calculate the true LTC of a development loan, I decided that since we have yet to publish a condo development model, to build upon that module to create one. This condominium model has a lot of really great functionality that will allow […]
Mitigating A Common and Potentially Costly Error During Development Underwriting When lenders provide debt for a development project, they lend based on a Loan-to-Cost ratio (LTC), which is simply the percent of the total budget the lender will agree to lend to the borrower. So, if a project costs $10MM, and a lender loans $6MM, […]
The internal rate of return is one of the most commonly used metrics to value real estate investment opportunities. Simply put, the IRR is the target percent an investor is expected to earn over the life of the investment if the investment performs as projected. To explain formulaically, the IRR is the discount rate applied […]
San Francisco’s downtown area is currently going through an unprecedented, skyline redefining transformation. So many incredible developers and architects are in the process of leaving their mark on this city and it’s all happening or will be happening within roughly one square mile south of Market St in the downtown areas known as the Transbay District, Rincon […]