How difficult could major mixed-use development financial modeling possibly be? Well, pretty difficult. There are a lot of moving parts. You’re basically marrying several independent financial models into one mega-model. The permutations and combinations that make it particularly busy are as follows:

Optionality on developing or selling each individual parcel
Optionality on, if selling the parcel, buying [...]

In the context of a real estate development transaction, Land Equity is non-cash equity credit given to a land owner if the land owner elects to contribute the land as equity instead of selling the land for cash to the developer. The “credit” is given by both the developer (project Sponsor) to the land owner, [...]

I am not a person to just sit on the sidelines when it comes to anything. Those that know me well would always ask how I can be so involved and my response is “How can you not?” With it being so easy to “connect” with people through social media platforms, of which I am a [...]

Three Frequently Asked Questions About IRR (Internal Rate of Return) And NPV (Net Present Value) In Real Estate Transactions

A monthly-based IRR is imperative for a development analysis, but how useful is it for calculating a longer-term hold? If you have made monthly projections, then on the margin, a monthly-based IRR is always the better one to [...]

                       
Acquiring Mortgage Notes is a less obvious way to make a play in real estate, but the financial analysis is complex. Would you like to learn how to model Note Acquisitions and get a robust Excel Template with which to do so? Attend our 2-Day Intensive in person or virtually on 4/21-4/22.
Acquiring a Mortgage Note [...]

When I got a call from a peer the other day, he had already been banging his head against the wall for an hour as to why a loan repayment formula wasn’t working for him. I opened the model and looked at it for about 60 seconds, and then told him that the formula was [...]

The Costa Rica Global Association of REALTORS® (CRGAR) has decided to support CATURGUA,  Cámara de Turismo Guanacasteca,  and its efforts to attract international visitors and investors to Costa Rica, particularly the Guanacaste Province. Both organizations understand the importance of tourism and real estate investment to Costa Rica’s economic success.
The first evidence of CRGAR’s support is the placement of [...]

Here at REFM, we want you to benefit from the wisdom we have gained in spending way too much time analyzing real estate transactions in general and in running real estate Excel models in particular. The 60-Second Skills is an ongoing series that teaches you useful skills, tips and tricks for real estate and spreadsheet analysis [...]

Hunches - we all have them. It is that “gut” feeling that you get based upon experiences from your day to day activities. But how do we deal with it when you don’t have the data to back it up? Here is an example with which I was recently wrestling.
It is apparent that commercial [...]

I was working with a client the other day and while reviewing a modified version of one of our Excel Model Templates, I noticed that they had done something dangerous. They customized a row’s formula in a single cell to apply to an exception that was unique to the time period associated with that one column. [...]