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real estate financial modeling courses

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Real Estate Financial Modeling Accelerator (Updated April 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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Analyzing Value-Add Investments in Real Estate Using Yield-on-Cost

So a question recently came in around why a commercial real estate investor would use the Yield-on-Cost metric to assess a value-add real estate investment. This question came on the heals of several other questions also related to development…
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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,…
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30/360, Actual/365, and Actual/360 – How Lenders Calculate Interest on CRE Loans – Some Important Insights

(Updated August 7, 2019 to include a Watch Me Build video and Downloadable file) 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…
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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.…
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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…
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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…
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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…
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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…
sizing a mortgage loan amount
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How to Use Debt Yield to Calculate Loan Amount

In our glossary of commercial real estate terms, we recently answered the question: what is debt yield? As a follow up to that entry, I thought I’d expand on the concept of debt yield by showing you how lenders use debt yield to come up with…