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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Development Draw Schedule - Visually Customize Each Line Item

Working a lot with development draw schedules, I have always been looking for a catch all solution as to how one could easily model all the unique ways cash actually flows over time during the process. The norm for many is to model cash flows…
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Construction Draw Schedule: Accounting For True LTC

When lenders provide debt for a development project, they lend based on a Loan-to-Cost ratio (LTC), which is simply the percent of the total budget the lender will agree to lend to the borrower. So, if a project costs $10MM, and a lender loans…
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,…
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Calculate Residual Land Value in Excel

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…
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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…
a large commercial real estate building
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Refinance Risk Analysis Tool in Excel

Simply put, equity real estate investors spend their time modeling the upside while their debt partners spend their time modeling the down side. Equity investors generally focus on an investment's internal rate of return, cash-on-cash return,…
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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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Waterfall Model For Real Estate Joint Ventures

I've just wrapped up a new waterfall model over the weekend that I am excited to share on the site. This model was built as an addition to the acquisitions model I posted a few weeks back. And like the acquisition model, I made an attempt…