Realistic Real Estate Model
Hi, I attended the A.CRE course + read a couple of books about modeling in RE, however, I wanted to see how much more complex is a real model. Can anyone share anything?
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Some can be more complex, but real estate is pretty simple - unless you want to see Argus models, A.CRE is great.
A realistic model is usually one where AM plugs in the actual CAMs, rents, and timing after the building/development has stabilized.
Sincerely,
An Acquisitions Person
Thanks for not wanting to hand me a POS building.
Sincerely, The Non-Magical AM Team
We have high hopes that you can achieve our MLA rents. They’re only 20% over market.
If you're comfortable with the A.CRE model and can build a simple one with a basic waterfall from scratch, you should be fine.
In terms of modeling the RE cash flows... pretty straight-forward. Our acq/AM models are mostly Argus-driven down to NOI and TIs/LCs... Much easier to model MLAs, expenses, growth, etc in AE. However it can get more complex depending on the capital structure of the deal. We did a deal with a co-GP and syndicated the LP equity slug -- that waterfall structure is a little more complex. Debt/equity future-funding for capex/TIs/LCs can be a pain to functionally model.
Retweet. Im on the LP side and modeling a coinvest at either the GP or LP level can get really annoying really quickly. Same with future funding especially if you need to bifurcate by line item for some godforsaken reason
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