I thought I’d share the real estate debt module I originally built for the ARGUS alternative in Excel. Most debt modules I’ve seen in real estate financial models only include the ability to model fully amortizing senior debt. Mike challenged me some time ago to come up with a more robust option, and this debt […]
Recently, we had an A.CRE reader ask us about the mechanics of Preferred Return distributions in our equity waterfall models with IRR hurdles. Specifically, he questioned the timing of when and how Preferred Return vs Return of Capital were distributed. In this blog post, I’ll share the response I gave him in order to help […]
This is the first in a series of commercial real estate case studies shared by A.CRE. These case studies are meant to help you practice to master real estate financial modeling. Presidio puts you in the role of an acquisitions professional needing to assess the viability of a value add apartment acquisition opportunity. Practice makes […]
The real estate industry is enormous. In the United States alone, over 2.9 million jobs are tied to commercial real estate, 17% of GDP comes from the real estate industry, and the aggregate value of U.S. commercial real estate is approximately $20.7 trillion. Yet, in spite of its impact and size, there is still a […]
In this Watch Me Build video I show you how to build a custom rent schedule module for long-term leases. The foundation of the module is a simple INDEX/MATCH combination that takes a rent schedule and models the rent cash flows across the entire hold period. I also include an optional file that you can […]
I’ll be the first to admit that real estate asset management doesn’t get the attention it deserves on AdventuresinCRE.com. The real reason for this is that we’re not necessarily asset management experts. I spent some time working in asset management as an intern and I took my fair share of asset management courses during my graduate real […]
I’d like to share a handy little trick I learned this week for hiding and unhiding tabs in Excel using drop-down menus. Now this method requires you to use some basic VBA code and to save the Workbook as a Macro-Enabled file but don’t be intimidated – no previous coding experience is required to make this work. […]
A few years ago, I recorded my screen as I built a 3-tier real estate equity waterfall model. What I didn’t mention in that Watch Me Build video, is that the kind of waterfall I built is colloquially called a European-style equity waterfall. And while that type of waterfall is extremely common, both in the […]
At A.CRE, we’ve built dozens of custom GPTs for internal and external purposes. Some of the GPTs have general application, while others are custom GPTs specifically for commercial real estate. One such CRE-specific GPT that we recently built and that I’m particularly excited to share today is our first real estate analyst GPT: our Advanced […]
Microsoft Excel is the primary tool used by real estate financial modeling professionals. Even while numerous non-Excel alternatives have attempted to de-throne Excel, the 35+ year-old software has shown to be surprisingly resilient to competition. And thus, if you intend to work in real estate you must be proficient in Excel. So what does it […]
Consider this scenario: you have a 50 tenant rent roll, consisting of various tenant types (i.e. small inline, large inline, junior anchor, anchor, etc.), and you want to calculate the weighted average rent for each tenant type. If I asked you, what is the fastest and cleanest way to do this in Excel, what would […]
So you’ve made it past the HR screening interview. You have the education and experience the company is looking for, but now they want to be sure you possess the real estate financial modeling skills necessary to do the job. They’ve asked you to take part in a multi-hour real estate technical interview. In that interview, they’ll […]
Before moving to the principal side of the business, I began my career as a self-described real estate investment specialist, largely working as a land broker but dabbling in other areas including the popular “single-family flip” space. In all honesty, I wasn’t qualified for the title. In fact, I had little to no actual experience […]
For several years now, our library of real estate models has been lacking a robust ground-up apartment development model. Sure, our All-in-One (Ai1) model has the capability to model multifamily development deals, but it’s more a generalist tool than a specialized one. As a result, I’ve found it wanting when used to model developments. So a few […]
In this Watch Me Build session, I’ll walk you through constructing a custom GPT that near-instantly sifts through Industrial Offering Memorandums to pinpoint whether an investment aligns with your criteria. At the heart of this build is a tailored GPT setup that efficiently processes and analyzes complex data sets found in these OMs. Custom GPTs […]