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, [...]

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 [...]

Usually it’s hard to excited about things in Excel, but there are a few exceptions. This is one of them.
Previously I wrote about the Watch Window as a good way to keep an eye on values on a tab other than the currently active tab, but I have always been a little annoyed by having [...]

                    
Welcome to the REFM Commercial Real Estate Company Directory! The Directory is an ever-expanding list of commercial real estate owners, operators, developers, investors and other principal stakeholders.
Job seekers and market analysts, have you checked out the REFM CRE Company Directory yet? It is a quick and easy way to identify the players in a [...]

In today’s post, we will look at the basics of Future Value and Present Value, using a $100 Time Zero amount and an assumed annual growth rate of 4.00%. Follow the input commands on your financial calculator to solve for the Future Value at the end of Year 1 and the Present Value of the [...]

Over 200 joined us for last week’s webinars on the 2011 Annual Report on the Real Deals Joint Venture Equity Partnership Database! If you missed learning about how deals got done in 2011, included here is a video replay of the webinar, and the accompanying slides as well. Click below to learn about 5 Surprise [...]

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 [...]

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 [...]