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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: Born and raised in the Northwest United States, Spencer Burton has over 20 years of residential and commercial real estate experience. Over his career, he has underwritten $30+ billion of commercial real estate at some of the largest institutional real estate firms in the world. He is currently President and member of the founding team at Stablewood. Spencer holds a BS in International Affairs from Florida State University and a Masters in Real Estate Finance from Cornell University.