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?
| +48 | Anyone else being pushed to underwrite more aggressively (Multifamily)? | 14 | 4d |
| +30 | Uncertain of what To Do Next | 5 | 1d |
| +29 | What should we be buying? | 22 | 2h |
| +28 | Capital Restricted Developer | 2 | 1d |
| +27 | Basis play / value-add office in high-growth markets - value trap or generational buy? | 10 | 3d |
| +22 | Warning: J. Shaw Recruiters | 5 | 1d |
| +18 | Due Diligence - ALTA Survey | 3 | 2d |
| +17 | Laughable Job Posting | 3 | 17h |
| +15 | Seeking Advice: How Do You Get Value from ULI Membership? | 2 | 4d |
| +11 | PGIM Real Estate Equity vs. Private Credit | 3 | 4d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Following
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
Non maxime aut amet ducimus eos. Enim in deserunt eos. Reiciendis dolorem aut placeat molestiae excepturi. Commodi earum nemo placeat fugit exercitationem ut. Distinctio voluptatibus modi velit.
Ex esse qui vel quia sunt. Harum omnis soluta eius suscipit veritatis iure aperiam. Explicabo repellendus error id cupiditate sed itaque totam. Aut non quam et libero nesciunt dolor.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...