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LIHTC (Low Income Housing Tax Credits) Overview and Calculator

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 […]

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Watch Me Build Data Tables For Real Estate Sensitivity Analysis

This is a 3 part mini-series on using data tables in Excel to perform real estate sensitivity analysis. In this series, I’ll walk you through how to build both one-variable and two-variable data tables in parts 1 and 2. And in Part 3, I’ll walk you through how to no longer limit your two-variable sensitivity […]

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Watch Me Build A Construction Draw Schedule (Updated Jan 2020)

In the following video, I record my screen and narrative my steps as I build a basic construction draw schedule. I’ve also included the template and completed worksheets from this Watch Me Build exercise. Basic Construction Financing & Draw schedules: A Conceptual Overview A standard draw schedule with a basic capital stack of debt and […]

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Roll Up Your Monthly Cash Flow Line Items Into Annual Periods Using Only One Formula For The Whole Sheet

While building out my hotel development model (currently underway), I decided to take a break and record a video about how I roll up the monthly cash flow line items on my Monthly Cash Flow sheet into annual cash flow line items on a separate sheet using only a single formula and simply copying and […]

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A.CRE Flashcard Series – Sharpen Your Vocabulary (Updated 09.25.19)

As Spencer and I continue to flesh out the Adventures in CRE Glossary of Commercial Real Estate Terms, we thought it would be fun and useful to provide some of our readers who are just starting out in the industry with some practice flashcards. We hope you can use this as a tool to test […]

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30/360, Actual/365, and Actual/360 – How Lenders Calculate Interest on CRE Loans – Some Important Insights

(Updated August 7, 2019 to include a Watch Me Build video and Downloadable file) Commercial real estate lenders commonly calculate loans in three ways: 30/360, Actual/365 (aka 365/365), and Actual/360 (aka 365/360). Real estate professionals should be aware of these methods if they want to understand the real interest rate as well as the total amount of interest […]

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Through The Entitlement Process: Identifying Risks and Strategies For Mitigation

Investing in and developing an unentitled site, broadly speaking, is one of the riskiest, yet rewarding, endeavors in the commercial real estate industry. The entitlement process, in particular, is fraught with the potential for setbacks and even failure, all while significant money needs to be spent and put at risk long before any revenue can […]

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Deep Dive: Understanding Acquisitions: The Letter of Intent (LOI)

The Letter of Intent – Legal Issues The letter of intent is a critical document that is written up at the beginning of a potential real estate transaction between either a prospective buyer and seller or a prospective tenant and landlord. The LOI contains preliminary understandings between both parties about major points of interest and concerns […]

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Hotel Proforma Basics – Hotel Cash Flow Projection

Hotels are a unique asset in the commercial real estate world and are underwritten differently as a result. Probably the most obvious difference is the duration of the ‘lease term’ of the tenant, which is usually daily to weekly. Another major difference is that hotels are more operating intensive and typically contain other complimentary services […]