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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…
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Modeling a Property Tax Abatement in Real Estate (Updated Jan 2024)

We often field questions about how to model property tax abatements. It's a concept we cover in our the 'Advanced Modeling - Property and Portfolio' endorsement in our Accelerator real estate financial modeling training program and something…
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Glossary of Commercial Real Estate Terms (Updated Dec 2023)

Glossary of Commercial Real Estate Terms Welcome to the A.CRE Glossary of Commercial Real Estate Terms, a practitioner's guide to the most common terms in CRE. This is an ever-growing list of commercial real estate terms and definitions that…
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LBO vs CRE Acquisition Models and Using LBO Structure to Acquire CRE

In the world of investment and finance, models play an integral role in guiding decision-making processes, evaluating risk, and forecasting returns. Two such influential models are the Leveraged Buyout (LBO) Model and the Commercial Real Estate…
Analyzing a Financial Model Setup
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8 Considerations When Reviewing a Broker’s Financial Model Setup

Whether you’re an analyst, operating in acquisitions, or working in a different property-related role, it’s essential to have the skills required to qualify an opportunity, which typically includes reviewing a broker’s financial model…
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The Road To A Stabilized NOI – Underwriting Real Estate Concessions

The incentives offered to the tenants of a real estate property constitute another of the adjustments that real estate professionals must underwrite to achieve a stabilized NOI, but beyond the adjustment, the concessions represent the cost of…
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The Road To A Stabilized NOI – Vacancy And Credit Loss In Real Estate Underwriting

Considering the potential vacancy loss as well as tenant default on an income-producing real estate property represents another key underwriting decision that real estate professionals must make when transitioning to a pro forma (Stabilized)…
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The Road to Stabilized NOI – Loss to Lease in Multifamily Property Underwriting

The calculation of stabilized Net Operating Income for a property is synonymous with building a stabilized proforma. This modeling process starts by estimating revenues and then the expenses, which means we must adjust the anticipated revenues…
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Create Your First AI Tool: Sales Comp Database ChatGPT Plugin

Traditionally in commercial real estate, each organization builds its own proprietary sales comp database and then gives its analysts access to that database in order to perform comp analysis. As AI becomes more and more important, pairing the…
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A.CRE 101: CRE Risk Profiles (Updated May 2023)

In this post we will go into detail about the four CRE risk profiles commonly ascribed to commercial real estate opportunities. In order of least risky to most risky, they are as follows: Core Core Plus Value Add Opportunistic This…
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Best Practices in Real Estate Financial Modeling (Updated Mar 2023)

Before you use one of our real estate financial models (i.e. Excel templates), or before you set out to build your own real estate analysis tool in Excel, it's important to keep in mind a few real estate financial modeling best practices. This…
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Learning Real Estate Financial Modeling in Excel

We're often asked by our readers how we learned to be proficient in real estate financial modeling. The question usually arises because the person wants to know how to model real estate in Excel to either land a job in commercial real estate…
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Watch Me Build – American-Style Real Estate Equity Waterfall (Updated Jun 2022)

A few years ago, I recorded my screen as I built a 3-tier real estate equity waterfall model. What I didn't mention in that Watch Me Build video, is that the kind of waterfall I built is colloquially called a European-style equity waterfall.…
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4-Tier Equity Multiple Waterfall – Download and Watch Me Build (UPDATED APR 2022)

Here is a simple, yet very powerful, 4-tier equity multiple waterfall module. This post contains both a completed version of the module ready to plug into a real estate financial model as well as a 'Watch Me Build' template and companion video…
real estate professional using the income approach, a financial tool to value income producing property
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A.CRE 101: How to Use the Income Capitalization Approach to Value Income-Producing Property (Updated Apr 2022)

In commercial real estate, there are a few generally accepted methods for appraising (or valuing) real property. The three most common are the Cost Approach, the Sales Comparison Method, and the Income Approach. The Income Approach includes…