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Real Estate Financial Modeling Accelerator (Updated Jan 2021)

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,…
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Real Estate Elevator Pitches and Other Career Advice with Jenn Cook

Much of our content here at Adventures in CRE recently has been about career help and advice. This isn't accidental. With the current pandemic, we're doing our best to help A.CRE readers/listeners to enhance their career through this unusual…
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Using an IRR Matrix to Determine Hold Period

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…
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Advice for Young CRE Professionals with Mike Strug

Adventures in CRE has always sought to provide value to CRE professionals. Mike Strug, our guest speaker today, has a similar goal. Mike is the founder of the Young Real Estate Professionals of New York (YREPNY), a commercial real estate networking…
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Alternatives to Graduate Real Estate Education with Richard Byrd

Over the past few weeks, the Adventures in CRE staff have been updating and populating A.CRE with real estate education content, including profiles of some of the top undergraduate and graduate real estate programs in the United States. Though…
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Forecasting After-Tax Cash Flow in Real Estate Analysis

When modeling real estate investments, industry practice is generally to stop at before-tax cash flow. And this makes sense in most instances. No two owners of real estate have the exact same tax situation and no two properties necessarily have…
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Three Keys to LinkedIn Success in CRE

For commercial real estate professionals in 2020, one social media platform is more important than all of the rest. That platform is LinkedIn, and it now serves as a long-form real estate resume, a virtual business card, and for many their online…
Real Estate IRR Partitioning
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Watch Me Build – IRR Partitioning in Excel

In this post, I'd like to show you how to partition the internal rate of return of your real estate investment in Excel. I also throw in a quick equity multiple partition, to highlight how the time value of money affects your returns. I've recorded…
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How to Quickly Evaluate Real Estate Opportunities (Without Opening Excel)

We regularly respond to questions from A.CRE and Accelerator members as it relates to analyzing and evaluating real estate investment opportunities. Recently, in an Accelerator forum post a young professional marveled at how certain individuals…
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Watch Me Build a Tenant Rollover Analysis Model

The feedback has been positive on the ‘Watch Me Build a Multifamily Model’ video I recorded earlier this year. So I thought I’d follow that up with another. This time I build a Real Estate Tenant Rollover Analysis Model and talk through…
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Analyzing a Real Estate Investment from the Perspective of an LP

We received a question from an A.CRE reader this week that I thought warranted a thorough response. The question was, and I paraphrase, "I am an LP looking for models to help vet syndication deals. Do you have any models that can be used…
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The Limitations of IRR When Evaluating Real Estate Investments

The internal rate of return is one of the most commonly used return metrics to value 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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Using Boolean Logic to Model Multiple Generations of Tenant Improvements

Arguably the most powerful, and least appreciated and understood, functionality in Excel is its use of boolean logic. Or in other words, the use of TRUE and FALSE binary logic. This form of logic can be used to dramatically simplify formulas…
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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…
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…
a shopping center with robust sales and low occupancy cost
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Tenant Sales and Occupancy Cost in Retail Underwriting

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,…