How to Use My Real Estate Equity Waterfall Model

I took a few minutes this weekend, and created a video to help you use my real estate equity waterfall (IRR hurdle technique) model that I built in Excel. Again, keep in mind that the model is not standalone, but can be used with any of the Excel models in our library or with your own real estate investment Excel models. Here is the video:

If you’re interested in learning more, I found this great article from the CCIM on the IRR hurdle structure. This structure is definitely one of the more commonly used structures in the industry for splitting profits between a sponsor and his limited partners. It is a concept you should understand if you’re going to be working in institutional real estate investment.

If you have any comments about this model, or would just like to chat real estate, feel free to reach out to Spencer.

About the Author: Spencer Burton is Co-Founder and CEO of CRE Agents, an AI-powered platform training digital coworkers for commercial real estate. He has 20+ years of CRE experience and has underwritten over $30 billion in real estate across top institutional firms.

Spencer also co-founded Adventures in CRE, served as President at Stablewood, and holds a BS in International Affairs from Florida State University and a Masters in Real Estate Finance from Cornell University.

Contact Spencer