Posts

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Real Estate Equity Waterfall Model - IRR and Equity Multiple Hurdles (Updated June 2018)

Over the years, my real estate equity waterfall with annual periods and the option of using either IRR or Equity Multiple Hurdles has been one of the most popular models download at Adventures in CRE. I've received dozens of requests for how…
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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 metrics to value real estate investment opportunities. Simply put, the IRR is the target percent an investor is expected to earn over the life of the investment if the investment performs…
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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…
Real Estate IRR Partitioning
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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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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. As an example, let’s take a look at the base case from my Multifamily Model posted earlier for 123 Fake…