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 lender is lending at a 60% LTC. However, the […]
Welcome to this episode of the Contract to Close series! This episode features Josh Roling, a real estate attorney and an expert in all things commercial real estate acquisitions. Josh is a close friend and colleague of mine with whom I’ve done 48 deals! In this episode, I speak to Josh about title insurance. It’s […]
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 […]
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 […]
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 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 […]
Spencer and I are excited to introduce the A.CRE Undergraduate Real Estate Series. Much like our series on top MBA in Real Estate and Masters in Real Estate programs, this series on Real Estate Undergraduate programs will provide our readers with a glimpse into not only what these programs have to offer, but insights from current or […]
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 […]
Welcome to the A.CRE Hotel Valuation Model‘s Tutorial Page. On this page you will find all the tutorials for the A.CRE Hotel Valuation model in Excel. There is a lot to learn within this model and over time, I’d like to show you both how to use it as well as how I built it. […]
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 […]
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 […]