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Tutorials for A.CRE Value-Add Apartment Acquisition Model

As promised, I’m following up the release of the A.CRE Value-Add Apartment Acquisition model with a series of walk-throughs and tutorials to help you better understand the various elements of the model. The tutorials start with the basics – a guide to getting started, and then get progressively more advanced.

If you’ve already visited the model’s download page, some of the material below is redundant – but I’ve included everything in this post so you have one place to come to learn to use the model.

If you haven’t already, download the model here.

Overview – A.CRE Value-Add Apartment Acquisition Model

The A.CRE Value-Add Apartment Model includes one primary inputs tab, one report tab, and a tab to track version changes to the model.

Version Tab (Visible by default)

The model opens initially to this tab so you can see what changes have been made in the most recent version of the model. On this tab you can also find links to model tutorials, guides, support, and other information.

Underwriting Tab (Visible by default)

The Underwriting tab is where all of your primary inputs are entered. The tab is broken up into six sections, built from top to bottom. The sections can be accessed either by scrolling down to each or using the buttons along the top of the screen. The six sections are ‘Investment Description’,  ‘Investment Cash Flows’, ‘Operating Cash Flows’, ‘Reversion Cash Flows’, ‘Property-Level Returns’, and ‘Partnership-Level Returns (Waterfall)’.

Summary Tab (Visible by default)

While property-level return metrics levered IRR and levered EMx are shown along the top of the Underwriting tab, the bulk of the risk and return metrics are shown/visualized on the Summary tab. The summary tab also includes two operating cash flows charts, a strengths/weaknesses section, a frame to include a picture/map, and a summary of the investment. The Summary tab is meant to be printed, and as such the view mode is set to Print Preview by default.

Annual Cash Flow Tab (Hidden by default)

In beta v0.3, we added an Annual Cash Flow report tab. The tab rolls up the monthly cash flows to annual periods, so you can view high-level cash flows on one page. The report is printable. You can access the report by pressing the ‘Show’ toggle on the Summary tab with the Property Cash Flow section.

Tutorial #1 – Guide to Getting Started Video Walk-through

To help you get started using the model, I’ve recorded a video overview of the model to get you started.

Tutorial #2 – Using the Model to Assess a Value-Add Acquisition

  • Click here to download the underwriting notes for the hypothetical property used in this tutorial

Tutorial #3 – Using the Model to Assess a Stabilized Acquisition

  • Click here to download the underwriting notes for the hypothetical property used in this tutorial

Tutorial #4 – Getting the Most out of the Investment Cash Flow Module

Tutorial #5 – Modeling Capital Sources

Tutorial #6 – Using the GP Fees Module

Tutorial #7 – Adding/Deleting Unit Types

Tutorial #8 – Using the Variable Interest Rate Module

Tutorial #9 – Modeling Lender Reserves

Tutorial #10 – Modeling Partnership-Level Returns (Equity Waterfall)

About the Author: Born and raised in the Northwest United States, Spencer Burton has over 20 years of residential and commercial real estate experience. Over his career, he has underwritten $30+ billion of commercial real estate at some of the largest institutional real estate firms in the world. He is currently President and member of the founding team at Stablewood. Spencer holds a BS in International Affairs from Florida State University and a Masters in Real Estate Finance from Cornell University.