HELP NEEDED - Entry-level CRE analyst Modeling Assessment
[deleted]
[{"id": "i88tz2w", "text": "I don\u2019t know how much time you have, but justin kivel and his courses are pretty good (at udemy).", "replies": [{"id": "i88x2ol", "text": "I second this one. As others on here will be sure to point out, he sometimes says some stuff that\u2019s not correct, but his modeling courses are pretty solid.", "replies": [{"id": "i8b80gt", "text": "I have until next Tuesday but I'm willing to put in as much time as needed. Would you both still recommend it?\n\nedit: and if so is there a specific course that would pertain to this kind of problem?", "replies": [{"id": "i8badrz", "text": "You could probably bang out the first course in a few hours. It was called like real estate financial modeling boot camp or something. That one should give you all you need to set up a model for what you\u2019re looking to do. He also has an advanced modeling course and two private equity waterfall modeling courses that I\u2019ve taken. I\u2019ll edit this comment with the actual course name when I get into work this morning.", "replies": [{"id": "i8bgufm", "text": "Thank you!", "replies": [{"id": "i8bo0v4", "text": "No problem, and it\u2019s called The Real Estate Financial Modeling Bootcamp.", "replies": [], "depth": 6}, {"id": "i8mjieg", "text": "Yeah, I agree with @tonikyat , just do the basic intro and one advance multifamily model and thats all you need.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i899jk3", "text": "Do you mind posting the full example or DM\u2019ing it to me? Would love to play around with it.", "replies": [], "depth": 1}, {"id": "i89jztq", "text": "3.5% way to date yourself tester \ud83d\ude36\u200d\ud83c\udf2b\ufe0f", "replies": [], "depth": 1}, {"id": "i89k482", "text": "Are you supposed to determine the market cap rate? Or use their 7%? Because using the income approach, value is NOI divided by cap rate. You have the property NOI from the cash flow report. If you make an excel worksheet with the property cash flow, you can stress it by vacancy and rate and the corresponding changes to NOI should change property value accordingly. You can even include a band of cap rates with a range of values to visually see the value that corresponds with your 7% cap rate. I\u2019m not sure about including IRR in this, I just work in the financing side of it so our concern is the ability to meet debt service.\n\nedit: oh I see they give you the loan terms so you can get the property's net cash flow for your IRR calculation.  Excel can do that calculation too. So you just need to demonstrate if the property meets the IRR target, and what it is valued at using a 7% cap rate.", "replies": [{"id": "i89ywdr", "text": "This is correct. Them providing the net IRR doesn\u2019t add much value here. You have the cash flow report and are given a terminal cap rate. Pretty simple to find an approximate valuation there. Other way is to create a DCF model and assume a proper discount rate to project future cash flows to the property.", "replies": [{"id": "i8b85cr", "text": "Thank you both for this clarification. I was struggling with what I was trying to find in the first place when i saw I was given IRR", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i89mymw", "text": "Don\u2019t let \u201cmodel\u201d scare you. Just break down the different goals they want and role play the scenario. It\u2019s as simple as 3 different math problems\u2026include some tables with them if you wish. Use the role play to your advantage. Role playing (or scenario) is your home court/field advantage. Just back into it.", "replies": [{"id": "i8b88i3", "text": "Thanks man thats the plan. It's more just understanding the context of what I'm looking at lol", "replies": [], "depth": 2}], "depth": 1}]