Problem: You are modeling the acquisition or development of a property that benefits from a real estate tax abatement, and want to make sure that you are reflecting the eventual phase-in properly.
REFM 60-Second Skills Solution: Set up a simple table with the tax abatement percentage for each year, and then run a VLOOKUP to reference the [...]

Whether a commercial real estate senior loan is issued for an acquisition or a development, if it is sized to the the lender’s maximum specified threshold (whether Loan To Value–”LTV”, or Loan To Cost–”LTC”), and the lender is exercising wise underwriting standards, the statement the lender is in essence making is, “in the instance of borrower [...]

Modeling development transactions can be tricky if you want to avoid allowing circular references in your spreadsheets. Circular references can distort your calculations dangerously in that they mislead your expectations for your cash equity requirements.
The primary driver of development pro-forma circular references is the fact that construction loans (a Source of Funds) accrue interest, which [...]

We’ve collected these over the years, and wanted to share them as a list. Please add to the list in the comment section below if you’d like!

Garbage in, garbage out - We’ve all heard it many times before, but most expressions become hackneyed, because they have lasting value. The question to ask yourself is, “Do [...]

Problem - You want to merge together two separate text strings, or you want a label in your spreadsheet to be a more customized description of the numeric variables associated with that label
REFM 60-Second Skills Solution - Use the CONCATENATE and TEXT functions
Basic Example - Merge together two separate text “strings” into a single result using CONCATENATE.

Merge together [...]

Before you construct your projection formulas in Excel, spell them out in words.
For example, if I have a formula that needs to be triggered at a certain time, such as the net sales proceeds of a property, I would start by writing (yes, with pen and paper, or by typing out) the following: “If this is the [...]

Problem
Long, multi-part formulas can be tough to digest and challenging to audit when they extend a long way across the formula bar, or wrap onto multiple lines based solely on the available screen real estate.

REFM 60-Second Skills Solution
Separate your formula parts visually on separate lines within the formula bar (and drag down the bottom edge [...]

To save a partially-constructed formula, or to inspect a formula outside of the cell in which it resides, simply put a single quote mark ( ‘ ) in front of the equals sign. In the eyes of Excel, this converts the entire formula into text. When you are done reviewing/editing the formula and want to [...]

Percentage Rent, also known as “overage”, is a characteristic of many retail leases that allows the landlord to participate in the sales of the retail tenant at the property. The Percentage Rent is additional rent above the otherwise base fixed rent. The rationale behind this unique lease term, which is seen only in retail leases (and [...]

While our courses and Self Study products will accelerate your learning process, I want to be perfectly clear t hat modeling well takes a ton of hard work and dedication and many, many hours logged. There is no getting around this. So, here are some ways to really learn how to model well, in addition [...]