Below are videos and worksheets that discuss key concepts in commercial real estate financial analysis. Feedback is welcome!
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Primer on IRR and Equity Multiple
We all use IRR when evaluating a commercial real estate investment - but have you ever sat down and thought about how IRR actually works? These two examples provide some insight on IRR and equity multiple.
MF Unit Renovations Framework
How do you decide when to renovate a multifamily unit? This video and worksheet provide a framework for decision making.
Customized Sensitivity Analysis
Typically, we see sensitivities done in a "static" format - a big table of numbers built into your template that calculates the sensitivities of the same two variables for every deal. What if you took a customized approach? You might try a few different variables, depending on the strategy. This video walks you through a couple of examples.
Executive Summary Framework
Too often, we use our existing/cookie cutter templates when presenting our financial model to acquisition teams, equity investors, and property owners. We should be telling a story with the Executive Summary...and keep it simple. Here is a simple framework:
👉 Who is your audience? Buyers, equity investors, the current property owner?
👉 What type of investment is this? Opportunistic, value add, core+?
👉 What are the key value drivers? In other words, what story are you telling?
