, , ,

Real Estate Financial Modeling Accelerator (Updated February 2024)

Prior to launching the Accelerator program, Michael and I fielded email after email requesting a more structured real estate financial modeling training program on the site. Over the years, we've covered hundreds of real estate modeling…

Garantías de tipos de interés

Una garantía de tasa de interés es una combinación de un tope de tasa de interés y un piso de tasa de interés. Sirve para limitar las fluctuaciones de la tasa de interés de un préstamo a tasa variable. El prestatario que utiliza una garantía…

Tasa de interés máxima

Una tasa de interés máxima es un tipo de contrato de derivados que proporciona al comprador protección contra la subida de las tasas de interés. Establece un nivel máximo (o tope) en la tasa de interés de un préstamo a tasa variable o…

Interest Rate Cap

An interest rate cap is a type of derivative contract that provides the purchaser with protection against rising interest rates. It sets a maximum (or cap) level on the interest rate on a floating or variable rate loan. If interest rates rise…

Interest Rate Collar

An interest rate collar is a combination of an interest rate cap and an interest rate floor. It serves to limit the range of interest rate fluctuations on a variable-rate loan. A borrower who uses a collar agrees to an upper limit on the rate…

Interest Rate Swap

An interest rate swap is a financial contract in which two parties agree to exchange one stream of interest payments for another, over a set period. Typically, this involves swapping fixed-rate loan payments for variable-rate payments, or vice…

Equity Multiple

A return metric which shows how much an investor earned on his or her invested capital. The equity multiple (EMx) is calculated by dividing the sum of all capital inflows (capital distributions) by the sum of all capital outflows (capital contributions).…

Annual Percentage Yield

Annual Percentage Yield (APY) is the true rate of return earned taking into account compounding interest. Also known as the Annual Effective Rate, the formula for APY is as follows: APY = ( 1 + APR / n ) ^ n – 1 Periodic Rate = ( 1 + APY…

Annual Percentage Rate

The Annual Percentage Rate (APR) is a simple nominal interest rate representing annual interest accrued. APR is the base rate that allows linear compounding period after period. Periodic Rate = APR / n When n = Frequency of compounding…

Financial Model

A comprehensive, quantitative tool that combines various financial and operational inputs to forecast and predict the financial performance, value, and viability of a commercial real estate investment or project. A financial model enables…

Unlevered

The term "unlevered" or "unleveraged" refers the state of a real estate investment, cash flow, or financial metric without (or before) the use of debt. The term unlevered (or unleveraged) is often used in conjunction with certain financial and…

Levered

The term "levered" or "leveraged" refers to the use of borrowed funds or debt to finance an investment in a property. Leveraging allows investors to increase their potential returns by using a smaller amount of their own capital and borrowing…

Pro Forma

A financial projection that provides an estimate of the potential income, expenses, and profitability of a real estate investment or development project. Typically used for planning, analysis, and decision-making purposes, a real estate pro…

CBD

See Central Business District.

CCRC

See Continuing Care Retirement Community.

Central Business District

The central business district (CBD) is typically the center of business and economic activity of a city. Land use is generally more dense urban infill with various land uses, including retail, office, hotel, government, and entertainment buildings,…