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real estate financial modeling courses

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Real Estate Financial Modeling Accelerator (Updated Aug 2021)

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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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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Roll Up Your Monthly Cash Flow Line Items Into Annual Periods Using Only One Formula For The Whole Sheet

While building out my hotel development model (currently underway), I decided to take a break and record a video about how I roll up the monthly cash flow line items on my Monthly Cash Flow sheet into annual cash flow line items on a separate…
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A.CRE Flashcard Series – Sharpen Your Vocabulary (Updated 09.25.19)

As Spencer and I continue to flesh out the Adventures in CRE Glossary of Commercial Real Estate Terms, we thought it would be fun and useful to provide some of our readers who are just starting out in the industry with some practice flashcards.…
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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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Through The Entitlement Process: Identifying Risks and Strategies For Mitigation

Investing in and developing an unentitled site, broadly speaking, is one of the riskiest, yet rewarding, endeavors in the commercial real estate industry. The entitlement process, in particular, is fraught with the potential for setbacks and…
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Modeling a Property Tax Abatement in Real Estate

We often field questions around how to model property tax abatements. This is a concept we've addressed in our All-in-One forum and a question around valuing property tax abatements came up recently in our A.CRE Accelerator Advanced Concepts…
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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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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…
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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…
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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,…
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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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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 Opportunistic This…
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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…
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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…