Special Topics in Real Estate

AllA.CRE 101Graduate Education | Special Topics Book Reviews | CRE Terms | Find a Job

All | Investment Analysis | Interesting Deals | Leases | Taxes

real estate financial modeling courses

, , ,

Real Estate Financial Modeling Accelerator (Enroll for April 1st Start)

Since starting A.CRE, Michael and I have 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 topics in our blog;…
, , ,

Deep Dive: Understanding Acquisitions: The Letter of Intent (LOI)

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.…
, , , ,

Excel-Based Restaurant Selection Tool for the Overly Indecisive

We're celebrating some much deserved time off from work, and so what better way to spend the time than to make a completely unnecessary (but fun!) Excel model. I call this the indispensable Excel tool for the overly indecisive, and it's basically…
, , ,

Hotel Proforma Basics - Hotel Cash Flow Projection

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…
, , , , , ,

Deep Dive - Land Acquisition and Assemblage

This is a topic I'm all too familiar with. You see I cut my teeth in real estate, largely sourcing and negotiating residential and mixed-use land acquisition opportunities.  I've put land deals together both as a fiduciary and as a principal,…
, , , , ,

Deep Dive - Sources of Capital: Real Estate Private Equity

Capital for commercial real estate investments is generally sourced from one or more of the following buckets: public equity, public debt, private equity, or private debt. In my experience, few people fully understand these four buckets of capital,…
vintage Walgreens on corner of two busy california streets
, , , , , , , , ,

Single Tenant NNN Lease Valuation Model (Updated 9.18.2018)

I originally built this single tenant net lease (NNN) valuation Excel model back in 2016. Based on some feedback from a few of our readers, I've since made a few updates. This model is an attempt to re-think how the industry underwrites single-tenant…
, , , ,

Understanding Treatment of Time 0 in the All-in-One Model

I received a very astute question/concern from a user of our All-in-One(Ai1) model in our Ai1 Support Forum late last month. I initially set out to answer the question in writing, but the more I thought about my response, the more I concluded…
, , , ,

All About Cap Ex

In this post, we are going to take a deeper look into capital expenditures. What it is and how we account for it in cre underwriting.Capital expenditures, commonly referred to as Cap Ex, are expenses that occur outside of normal operating…
, ,

A.CRE 101: CRE Risk Profiles

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 OpportunisticThis…
, , , , ,

30/360, Actual/365, and Actual/360 - How Lenders Calculate Interest on CRE Loans – Some Important Insights

Commercial real estate lenders commonly calculate loans in three ways: 30/360, Actual/365 (aka 365/365), and Actual/360 (aka 365/360). Real estate professionals should be aware of these methods if they want to understand the real interest…
, , ,

Using the Cash-on-Cash Return in Real Estate Investment Analysis

I’ve fielded a handful of Cash-on-Cash (CoC) return questions of late. So, I thought it would be worthwhile to write a post on what the Cash-on-Cash return metric tells me about a potential real estate investment. This article is a primer,…
, , ,

1031 Exchange - Introduction, Overview, and Analysis Tool

A 1031 Exchange, or Like-kind Exchange, is a strategy in which a real estate investor can defer both capital gains tax and depreciation recapture tax upon the sale of a property and use that money, which has not been taxed, to purchase a like-kind…
, , , ,

The A.CRE Method For Doing Cap Rate Mental Math - Practice Tool

At the bottom of this post is a downloadable practice tool for the A.CRE Method for doing cap rate mental math. The tool will generate an endless number of random cap rates and NOIs to practice with and will walk you step by step through how…
, , , ,

A.CRE 101: How To Use The Discounted Cash Flow (DCF) Method To Value Income Producing Property

The Discounted Cash Flow Method is a method to value a project by taking all future projected cash flows of the project and discounting them back to time zero (date of purchase) using a predetermined discount rate (the discount rate when used…
real estate professional using the income approach, a financial tool to value income producing property
, , , , ,

A.CRE 101: How to Use the Income Capitalization Approach to Value Income-Producing Property

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…