I thought I’d write a quick post and update our readers on some exciting news around here. As many of you may (or may not) know, Michael and I met while working on our graduate real estate studies at Cornell University. We started adventuresincre.com because we wanted a conduit through which we could interact with likeminded real estate […]
In 2016, I wrote about Wall St. Training and their free Excel modeling resources. In that post, I mentioned the free WST Macros and how it is an indispensable add-in; one that I used in my professional life daily. Unfortunately, as of 2023, Wall St. Training no longer offers the resources mentioned in this blog […]
Maintaining a vibrant, ever-changing blog is not an easy endeavor, and I’ll be the first to admit that it’s not always fun. But what makes blogging worthwhile for Mike and I is the opportunity the blog creates to interact, either through email, phone, or social media with our readers. Meeting Ben Stevens Well, a few […]
You may recall that a couple of weeks ago, I began to explore Stochastic Modeling concepts, or the idea of adding probability into my models, to get a more complete picture of the risk-return metrics of an investment. I became interested in the idea, after reading a thesis on the subject by Keith Chin-Kee Leung shared […]
As promised, I’ve recorded a tutorial on how to use my construction draw and interest calculation model. The 20 minute tutorial walks you through how to use the model to forecast construction cash flows during your development period. The model calculates construction loan interest, forecasts the distribution of sources and uses throughout construction, projects an equity […]
I’ve created a companion to my real estate equity waterfall model to work with equity multiple hurdles, rather than IRR hurdles. It took me longer than I expected to build this, largely because I was over thinking it. I messed around with IF statements, and adding rows, and a whole lot of other ideas that were […]
I promised a how-to video for my real estate apartment acquisition model, and so I thought I’d use an actual property to do so. I grabbed a property from Loopnet that is currently for sale, and dropped the information from the listing into the model. I’m not at all familiar with the property or the sub-market, and […]
If you recently upgraded from Excel 2007 or Excel 2010 to either Excel 2013 or Excel 2016 for Windows, you’ve probably noticed a change that can be quite distracting (and even annoying!). Microsoft Excel now animates certain actions as you work. For instance, when you move from one cell to another, it animates the move. […]
Styuvesant Town-Peter Cooper Village, otherwise known as Stuy Town, is back in real estate news. Blackstone, together with Ivanhoe Cambridge and CWCapital Asset Management, have agreed to buy the 11,232-unit apartment complex for $5.3 billion – nearly matching the $5.4 billion paid for the property by a Tishman Speyer/Blackrock partnership in 2006. The property is the largest apartment […]
It is little secret among our readers that I view ARGUS DCF as a necessary evil. On the one hand, it is the industry standard for underwriting real estate. Virtually every broker package for institutional quality deals comes with an ARGUS run, and most real estate shops use the software in their analysis. On the other […]
I took a few minutes this weekend, and created a video to help you use my real estate equity waterfall (IRR hurdle technique) model that I built in Excel. Again, keep in mind that the model is not standalone, but can be used with any of the Excel models in our library or with your […]
I’ve updated my Portfolio Acquisition Model to include the following changes: – Added an “Investor Level Returns” tab to the model, which uses my Real Estate Equity Waterfall Model to calculate the equity returns of the sponsor (GP) and the limited partners (LPs) – Added an “Investor Returns” box to the Portfolio Summary tab, summarizing […]
From time to time, I’m asked to share more complex development models that I’ve used professional. Unfortunately, most of the models that I’ve used professionally were built in partnership with others, and so I’m not at liberty to share those models openly. However, a couple of years ago, a friend at Cornell shared a resource with […]
UPDATE: ARGUS stopped selling ARGUS DCF at the end of 2015 and will stop supporting the software all together in 2017. The company no longer offers public training for DCF. You’ll also note that the YouTube video tutorial for DCF has been taken down. This blog post therefore, is no longer relevant. ARGUS DCF is was […]
If there’s one thing I remember from my pre-2008 days, it was seeing a lot of stories like this. Are we in bubble territory yet? SL Green Realty has agreed to buy CIM Group’s 11 Madison Ave. The 29-story office tower in Manhattan, NY will reportedly trade for $2.3 billion, the second highest price ever paid for a U.S. […]