REPE Modeling Test Example

Anonymous Monkey's picture
Anonymous Monkey

Saw a lot of posts on RE Modeling Tests & Case Studies and thought I'd give a shot on how I structured mine for interviews (on-site/take home) with anywhere between 30 mins to 1 hr of time allotted. The model enclosed typically takes ~30 mins to build (incl. formatting) with an extra ~5-10 for sensi's. To note, this is the exact model I sent in for a case study for an REPE MF (passed).

Link to Model:
REPE Modeling Test Example

Link to Image of Model:
https://ibb.co/KVtmLRy
*Simplified a lot of it (bells and whistles as well as P&L) but flexible for the time allotted
**Keep in mind Case Study had certain assumptions/objectives (Ex. all expenses reimbursed incl. vacancy loss), one size does not fit all. I wanted to provide a basic structure
***Missing waterfall but will make future post with one (Fees, Preff & Promote with IRR/EM Hurdles)

Let me know what you think and feel free to PM me with any questions (Also, have other models/case studies I could share). Would be interested to see other people's approaches too.

Comments (18)

Nov 10, 2019

Thanks!

Nov 11, 2019

This is pretty good,

Personal opinion is that keep the inputs on top rows instead of to the right of cash flows.

  • Investment Analyst in RE - Comm
Nov 11, 2019

Thank you and appreciate the feedback. I agree, for actual models everything is above

Nov 11, 2019

following, and appreciate you sharing so openly

Nov 13, 2019

Thanks for this! Could you maybe share some of your other models/case studies?

    • 1
  • Investment Analyst in RE - Comm
Nov 13, 2019

Glad you guys like it, I'll try to add the case studies sometime this week to this post. Hope you all find the model helpful and feel free to reach out with any questions.

Nov 13, 2019

Very nice! Can you share the initial data you had starting off the model so I can practice and build it myself with another approach? I'll post what I get afterwards.

Thanks.

Nov 14, 2019

Thanks for sharing. Is there any reason why you're not using the IPMT formula to calculate interest? As simply multiplying the rate by outstanding balance increases the total debt service over time (arguably not by much but still)

  • Investment Analyst in RE - Comm
Nov 14, 2019

Great question, it honestly was just a preference and got you in the same ballpark range which is pretty much the goal of these models.

In an actual model, I tend to make my debt dynamic (fixed (0) vs floating (1)) and combine a rate/spread in combination with 1-mo FWD Libor. I do the same, where I calculate interest on BOP Balance. For me, easier to model floating rate debt + other terms and run sensi's off of.

Hope that was helpful

    • 1
Nov 22, 2019

How is the sensitivity table at celll AG53 calculated? Was trying to figure out the inputs by following the logic but it looks like a function was used.

Thanks in advnace!

  • Investment Analyst in RE - Comm
Nov 24, 2019

Just used data table function for all sensis.

    • 1
Feb 7, 2020

I noticed that you applied your acquisition fee to the Total Costs to lever against - said another way, the 70% LTV was the purchase price and the acquisition fee.

Does this logic apply when you have debt origination fees, IS broker fees, etc.? I know the money has to come from somewhere, so it makes sense to loop them in.

  • Investment Analyst in RE - Comm
Feb 8, 2020

Broker fee (Purchase price )
Origination (total loan amount)
Sales costs (gross sale proceeds)

Feb 7, 2020

.

Apr 5, 2020

Thank you for sharing.

Can you share the case study and the additional models that you have?

Apr 6, 2020

Thank you for sharing.
i was doing a modeling ex. earlier & encountered some difficulties.. would be grateful if someone could give me some insights!

    • 10-year quarterly cash flow with rent roll that drive the top line of the cash flow
      (what does it "rent roll that drive the top line of the cash flow" mean ?)
  1. Leased-up Schedule: Leased to 4 tenants at future market rent; 25% of the area to each tenant; 3-year lease terms; Tenancy starts 3, 6, 9 and 12 months from acquisition in June 30, 2014; Tenant renewal probability 50%. Downtime for new leases 3 is months.
    (how to model the tenant renewal probability ?)

thank you so much

Apr 13, 2020

Thank you for sharing. Can you share the initial case inputs?

Can you also send the additional models which you have?

  • Investment Analyst in RE - Comm
Apr 28, 2020
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