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real estate financial modeling courses

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Real Estate Financial Modeling Accelerator (Updated May 2022)

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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Construction Draw Schedule: Accounting For True LTC (Updated Apr 2022)

When lenders provide debt for a development project, they lend based on a Loan-to-Cost ratio (LTC), which is simply the percent of the total budget the lender will agree to lend to the borrower. So, if a project costs $10MM, and a lender loans…
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…
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1031 Exchange – Overview and Analysis Tool (Updated Apr 2022)

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…
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Underwriting a Tenant with Private Credit

Recently, we had an Accelerator member ask a question about how to accurately determine a credit rating and spec income discount rate for a private tenant in a single tenant net lease deal. While the scenario specifically involved a medical…
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Glossary of Commercial Real Estate Terms (Updated Feb 2022)

Glossary of Commercial Real Estate Terms Welcome to the new Glossary of Commercial Real Estate Terms on A.CRE. This will be an ever growing list of commercial real estate terms and definitions and we hope it will become a valuable resource…
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The Acquisition Process | Title Insurance featuring Josh Roling – Contract to Close

Welcome to this episode of the Contract to Close series! This episode features Josh Roling, a real estate attorney and an expert in all things commercial real estate acquisitions. Josh is a close friend and colleague of mine with whom I've done…

Industrial Real Estate Investments in Emerging Markets

E-commerce isn’t a new innovation, it has been around since the early 90s and was actually first created in the 1960s. Since then, many e-commerce companies have come and gone but in the past few years, there have been a few stable companies…
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Limitations of IRR When Evaluating Real Estate Investments

The internal rate of return is one of the most commonly used return metrics to analyze real estate investment opportunities. Simply put, the IRR is the anticipated, project-determined discount rate an investor is expected to earn over the life…
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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,…
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The A.CRE Method for Doing Cap Rate Math in Your Head

In this post, I'd like to share a method that, with a little practice, will enable you to quickly do cap rate math in your head; whether it’s quickly figuring out what the sale or purchase price would be of a property based on the NOI and…
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Could You Be Exiting Too Early? Don’t Forget to Analyze Your Reinvestment Rate

When attempting to maximize the value of your money invested in real estate, the timing of your exit is key to maximize your return. Exit too early, and you might leave money on the table. Exit too late, and you might have better used that capital…
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Calculate Residual Land Value in Excel

Here's the scenario. You're a real estate developer. You spot a prime parcel of land that would be perfect for your real estate project. So you approach the owner of the land about selling and she says, "Okay, bring me an offer." How much do…
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The Earnest Money Deposit – From Contract to Close Series

https://youtu.be/BIrK6pfvqGA What is an Earnest Money Deposit The earnest money deposit, also known as the good faith deposit or good faith money, is a sum of money that gets deposited by the buyer of a property into an escrow account…
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Using Excel’s New LAMBDA Feature to Create Custom Functions for Real Estate Financial Modeling

In December 2020, Excel rolled out a new featured called LAMBDA as part of the Office Insiders (i.e. beta) program. This feature allows the user to create custom functions, which can greatly reduce duplicative formulas and reduce errors. Well…
vintage Walgreens on corner of two busy california streets
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Single Tenant NNN Lease Valuation Model (Updated Dec 2020)

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 quite a few updates (see v2.0 updates video below). This model is an attempt to re-think…