Real Estate Financial Modeling

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Real Estate Financial Modeling Accelerator (Updated June 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…

RE Education, Careers, Real Estate Financial Modeling, Excel Models, Interviews, Tutorial, A.CRE 101 - Basic Concepts in Commercial Real Estate, Watch Me Build, Real Estate Case Studies, Office, Development

Watch Me Solve a REPE Technical Interview Modeling Test (Updated July 2024)

What better way to spend some free time over the Thanksgiving holiday, than to record myself completing a real estate private equity technical interview exercise! While I've offered help with the real estate technical interview in the past,…

Real Estate Financial Modeling, Excel Models, Tutorial, Asset Management, A.CRE All-in-One (Ai1) Model, Ai1 Tutorials, Deep Dive, Asset Management

Hold-Sell Analysis in Real Estate (Updated June 2024)

In course 3 of our A.CRE Accelerator, we use a case study that revolves around a hold-sell (i.e. hold vs sell) analysis scenario to teach the anatomy of the real estate DCF. In that scenario, the student is an asset manager working for an open-end…

Real Estate Financial Modeling, Excel Models, Tutorial, Excel Add-ins

A.CRE Geocoding Excel Add-in to Auto-Populate Latitude and Longitude in Excel (Updated Jun 2024)

The A.CRE Geocoding Excel Add-in uses the Google Geocoding API to automatically convert a given address to latitude and longitude coordinates, or to convert a given latitude and longitude coordinate to an address. The add-in makes auto-populating…

General, RE Education, Real Estate Financial Modeling, Tutorial, Deep Dive, Valuation

Why Your IRR and XIRR are Different (Updated June 2024)

This post was inspired by a question on our real estate financial modeling Accelerator forum. Additionally, Spencer and I frequently get emails asking about this very issue, which is 'why the IRR (internal rate of return) and XIRR (extended…

RE Education, Real Estate Financial Modeling, Excel Models, Tutorial, Special Topics, A.CRE 101 - Basic Concepts in Commercial Real Estate

A.CRE 101: How to Use the Income Capitalization Approach to Value Income-Producing Property (Updated May 2024)

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…

RE Education, Real Estate Financial Modeling, Excel Tips, Excel Models, Office, Retail, Industrial, Tutorial, Modules, Watch Me Build, Artificial Intelligence, AI Applications for CRE

Watch Me Build – Modeling a Rent Schedule in Both Excel and Using AI (Updated May 2024)

In this Watch Me Build video I show you how to build a custom rent schedule module for long-term leases. The foundation of the module is a simple INDEX/MATCH combination that takes a rent schedule and models the rent cash flows across the entire…

Real Estate Financial Modeling, Excel Tips, Excel Models, Tutorial

Hide and Unhide Tabs using Drop-down Menus in Excel (Updated Apr 2024)

I'd like to share a handy little trick I learned this week for hiding and unhiding tabs in Excel using drop-down menus. Now this method requires you to use some basic VBA code and to save the Workbook as a Macro-Enabled file but don't be intimidated…

Real Estate Financial Modeling, Tutorial, Equity Waterfall, A.CRE 101 - Basic Concepts in Commercial Real Estate, Watch Me Build

Watch Me Build – American-Style Real Estate Equity Waterfall (Updated Apr 2024)

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.…

Real Estate Financial Modeling, Excel Models, Tutorial, Investment Analysis, Special Topics, A.CRE 101 - Basic Concepts in Commercial Real Estate, Deep Dive, Valuation

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…

Real Estate Financial Modeling, Excel Models, Tutorial, Modules, Acquisition, Value-Add

Using an IRR Matrix to Determine Hold Period (Updated Dec 2023)

When building a real estate financial pro forma, it's important to model for and include a summary of various return and risk metrics. Among the different return metrics, the internal rate of return (IRR) - both on an unlevered and levered…

Real Estate Financial Modeling, Excel Models, Hotel, Apartment, Office, Retail, Industrial, Tutorial, Modules, Land Development, Development, Condo

Actual + Forecast Construction Draw Schedule with S-Curve (Updated Dec 2023)

Several times in the last month, I've been asked to tackle an interesting real estate financial modeling challenge - pare actual construction draw cash flows with s-curve cash flow forecasts to create an Actuals + Forecast Construction Draw…

RE Education, Real Estate Financial Modeling, Excel Models, Tutorial, Investment Analysis, Land Development, Special Topics

Calculate Residual Land Value in Excel (Updated Jul 2023)

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…

Real Estate Financial Modeling, Excel Tips, Excel Models, Tutorial, Excel Add-ins

The Circuit Breaker – How to Fix Circular Reference Errors in Excel

If you've spent much time working with elaborate Excel workbooks that rely on iterative calculations to solve formulas with circular logic, you've undoubtedly come across a problem where if you accidently put an erroneous value in an input…

Real Estate Financial Modeling, Excel Tips, Excel Models, Office, Retail, Industrial, Tutorial, Modules, Acquisition, Value-Add

Create A Dynamic Revenue Row to Calculate Multiple Tenant Leases (Updated Nov 2022)

I recently received an email from one of our readers asking how to create a dynamic revenue row for a pro forma that can capture rent changes for multiple tenants. I thought that this would make a great post for the site and would be a good…

a shopping center with robust sales and low occupancy cost

RE Education, Real Estate Financial Modeling, Excel Models, Tutorial, Modules, Investment Analysis, Special Topics, Deep Dive

Tenant Sales and Occupancy Cost in Retail Underwriting (UPDATED JUNE 2022)

When underwriting a retail investment, rollover risk is an incredibly important consideration. You, as a prospective debt or equity investor in the property, need to understand how secure the cash flows you're buying are; or in other words,…