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.
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
Tutorial #4 – Getting the Most out of the Investment Cash Flow Module
Tutorial #5 – Modeling Capital Sources
Tutorial #6 – Using the Operating Cash Flow Module
Tutorial #7 – Modeling Partnership-Level Returns (Equity Waterfall)
About the Author: Born and raised in the Northwest United States, Spencer Burton has over 15 years of real estate investment and development experience. In his current position, Spencer assesses new acquisition, development, and debt opportunities for a $45bn real estate fund. He resides in Dallas, TX.