Real Estate Private Equity - Underwriting Template | Development | REPE | Credit |

My fellow Monkeys -

Trying to gauge how the industry would react to another excel model prep course. I have been working on a pretty kick-ass underwriting model that I use daily in my REPE role. Keen on finding some way to generate income from the file.

What type of price point are people comfortable with?
What is the best way to market the product?

Any advice is appreciated - thank you in advance.

Comments (14)

 
Apr 24, 2019 - 9:37pm

CaptainCapRate:

What makes it kick ass?

Several reasons:

  1. Built with an institutional mindset and has been used in over $1.5B of RE transactions (1 year). It was not built with the intention of selling, but due to demand from my network, am considering making a business out of it.

  2. Easy to understand and would include troubleshooting services (could be free). Could serve as a study tool for incoming analysts. Analysts at my firm love it.

  3. Asset Class Agnostic - would offer private 1 on 1 sessions to adjust for specific asset classes or deals.

Plenty more benefit - but the gist of it is that it has served as a training tool for over 25 analysts over the past year. Most of those analysts still use it to this day.

 
Apr 24, 2019 - 9:55pm

I work with a lot of funds that have models that could be described just like that. Most everyone just has different templates for different asset classes and all are institutional/easy to understand. Some potential benefits that might allow you to separate yourself from others could be the ease of modeling expense reimbursements for office/retail, superior flexibility of the cap stack, tools for modeling investor returns, etc.

Happy to discuss further if you want to PM me.

 
Most Helpful
Apr 25, 2019 - 9:45pm

Also watch out for legalities - if you've created it on company time probably can't sell it for your own $

Array
  • 5
 
Apr 26, 2019 - 10:05am

I'm very interested in discussing a potential partnership opportunity with you if teaming up would be accretive. I've built a dynamic waterfall that can handle subordination of pref and/or return of capital, promote or CF split, funding priority, project IRR versus LP IRR hurdles, etc... Want to add clawback/catch-up capability and make sure it could be used for the European market.

In the process of developing an asset management tool that would be on a separate tab which would calculate actual daily capital/pref balances and distribute profit as funds are distributed. There could be a comparison sheet which shows actual vs. projected capital allocated, CF distributed, estimated future contribution/distribution, etc...

I've got this Indian guy I work with for PE shops.

 
Apr 27, 2019 - 2:34am

Having come from ibd restructuring and in repe in development you simply cannot build a template model to fit all deals. Capital structuring is unique to each project and excel isnt built for that prolly best bet is to build a vba based input model that can accustom all the potential intricacies of debt and equity and then perhaps that may be worth buying but remember if the investment firm cant understand the model they will never issue a term sheet.

 
Jun 5, 2020 - 10:51am

The potential could be to have some kind of personal blog with access to training modules or You tube excel modelling on underwriting. Most companies have in house excel models with specific rules on fees and structure built over a period of time adding attributes as needed. And there are the big wig applications like Argus, so might be a tough sell on excel modelling when the goal is to get away from it in the long run.

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