The internal rate of return is one of the most commonly used return metrics to analyze real estate investment opportunities. Simply put, the IRR is the anticipated, project-determined discount rate an investor is expected to earn over the life of the investment if the investment performs as projected. An example of how it works is […]
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 […]
When attempting to maximize the value of your money invested in real estate, the timing of your exit is key to maximize your return. Exit too early, and you might leave money on the table. Exit too late, and you might have better used that capital on other opportunities. In this quick post, I discuss […]
We have begun to compile a calendar of events for some of the more well known trade organizations in the industry in order to give our readers a one stop place to find out about events that are happening throughout the US and internationally. Obviously, this calendar will not be a complete list of all event offerings […]
What is an Earnest Money Deposit The earnest money deposit, also known as the good faith deposit or good faith money, is a sum of money that gets deposited by the buyer of a property into an escrow account usually a few days after signing the PSA, or purchase and sale agreement. The money, usually […]
In this post, I walk you through the A.CRE Mixed Use Development Model for Condo and Retail projects. The model is basically a reworked and expanded version of the Condo Development Model, so if you are familiar with that, this should feel and operate very similarly. This model can also be used as a condo […]
After posting the construction draw module 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 the user to get a […]
For one reason or another, there is a perfectly functioning and pretty valuable formula that can be utilized in Excel that Microsoft has chosen to exclude from Excel’s list of functions: the DateDif function. This function is a valuable tool that can instantly calculate the number of days, months, or years between two dates. While in […]
Excited to share the new A.CRE Hotel Development Model with everyone. As evidenced by the numerous requests we have gotten for this over the years, this model is long overdue so I’m quite happy to get it out there finally. At the core, the hotel development model is basically a hybrid of our Hotel Acquisition […]
I’ve decided to do a major overhaul of my last acquisitions model for office, industrial, and retail properties. There were a lot of things I wanted to change as well as add to the model and finally had a weekend to do it. This new and improved model includes both monthly and annual cash flows, […]
This is an Excel model I originally built from scratch back in 2015 for quickly assessing multifamily redevelopment opportunities. It was designed to work best for scenarios where individual units will be rehabbed over the hold at varying times. It’s a simple way to quickly analyze the viability of this type of multifamily investment. Since […]
This post was inspired by a recent question on our real estate financial modeling Accelerator forum. Additionally, Spencer and I frequently get emails asking about this very issue, which is ‘why the IRR (internal rate of return) and XIRR (extended internal rate of return) functions provide different results on the same cash flow’. Both functions […]
In this post, I’m going to go over Index Match Match, which is a very useful Excel formula that is used in both the Hotel Valuation Model and the Hotel Acquisition Model – The Basic Model. This formula allows you to hone in on a specific target cell and return its value when two criteria […]
Below is an overview of how LIHTC (low income housing tax credits) are calculated and applied to affordable housing projects. At the bottom of the post you will find downloadable excel files that correspond with the videos. LIHTC – An Overview LIHTC s are federal tax incentives given to the states who then award developers […]
This is a dynamic amortization schedule for debt 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 […]