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real estate financial modeling courses

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Real Estate Financial Modeling Accelerator (Updated Nov 2024)

Prior to launching the Accelerator program, Michael and I fielded email after email requesting a more structured real estate financial modeling training program on the site. Over the years, we've covered hundreds of real estate modeling…
Development Spread
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Using Development Spread in Real Estate Analysis (Updated Jun 2024)

Real estate developments carry inherent risks, making them one of the most challenging investment opportunities. However, the potential for profit can justify the risks involved. Have you ever wondered how to assess the profit potential…
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Mastering Return Metrics for Strategic Real Estate Investment Decisions

Return metrics are some of the key components for assessing commercial real estate investments. They give professionals an insight into the potential gains and risks associated with various properties. But which return metrics are most useful…
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Underwriting a Tenant with Private Credit (Updated June 2024)

Recently, we had an Accelerator member ask a question about how to accurately determine a credit rating and spec income discount rate for a private tenant in a single tenant net lease deal. While the scenario specifically involved a medical…
IRR and XIRR are different
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Why Your IRR and XIRR are Different (Updated June 2024)

This post was inspired by a question on our real estate financial modeling Accelerator forum. Additionally, Spencer and I frequently get emails asking about this very issue, which is 'why the IRR (internal rate of return) and XIRR (extended…
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A.CRE 101: How to Use the Income Capitalization Approach to Value Income-Producing Property (Updated May 2024)

In commercial real estate, there are a few generally accepted methods for appraising (or valuing) real property. The three most common are the Cost Approach, the Sales Comparison Method, and the Income Approach. The Income Approach includes…
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Quick Thoughts on Evaluating Real Estate Investments Without Opening Excel

In our industry (commercial real estate), the ability to quickly evaluate investment opportunities is crucial for staying competitive. I know I've found in my professional career, that having a clear framework for evaluating - and then either…
after-tax cash flow analysis
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Forecasting After-Tax Cash Flow in Real Estate Analysis (Updated May 2024)

When modeling real estate investments, industry practice is generally to stop at before-tax cash flow, rather than after-tax cash flow. And this makes sense in most instances. No two owners of real estate have the exact same tax situation and…
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How to Hire Your Next Commercial Real Estate Attorney

Choosing the right commercial real estate attorney is crucial for the success of any real estate transaction. The right attorney can help you navigate the complexities of real estate law, ensure compliance, and protect your interests. Attorneys…
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Using Geometric Mean (or CAGR) as an Alternative to IRR (Updated May 2024)

The internal rate of return (IRR) and compound annual growth rate (CAGR) are both metrics used to analyze investment returns. They're both commonly used in commercial real estate financial modeling, but what's the difference? When should you…
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Single Tenant NNN Lease Valuation Model (Updated May 2024)

I originally built this single tenant net lease (NNN) valuation Excel model back in 2016. Based on some feedback from a few of our readers, I've since made quite a few updates (see v2.0 updates video below). This model is an attempt to re-think…
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Entry-Level Position in Real Estate: Breaking Through the No Experience Barrier

Recruiting for an entry-level position in real estate can be daunting, particularly for those entering this highly competitive field where experience is often prized above all. How does one 'break through' when traditional pathways seem blocked…
iming of Preferred Return vs Return of Capital
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Timing of Preferred Return vs Return of Capital in an Equity Waterfall with IRR Hurdles (Updated May 2024)

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…
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Deep Dive: Careers in Commercial Real Estate (Updated May 2024)

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…
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Watch Me Build – Modeling a Rent Schedule in Both Excel and Using AI (Updated May 2024)

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…
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Watch Me Build – American-Style Real Estate Equity Waterfall (Updated Apr 2024)

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.…