One of the great things to come out of the 80’s (as opposed to legwarmers and headbands) was the 1031 exchange. Like-kind tax deferred exchanges have been allowed since the 1920’s or so, but the concept wasn’t permitted in its current form until a series of court decisions and tax law changes in the 1980’s. […]
1031 Exchanges: Managing Tax Liability for Optimal Private Equity Real Estate Returns Read More »
The original three posts under this title were extremely well-received (Part One, Part Two, Part Three), so we have decided to write two more. The goal of these articles is to explain real estate private equity for beginners in layman’s terms. If you’re fresh out of college or looking to make a career change, finding
A Beginner’s Guide to Commercial Leases, Part Four: More Terms Read More »
In an earlier post we discussed how leases describe and allocate operating expenses between the landlord and the tenant. Today, we would like to dive deeper into the topic of expenses, focusing on how expenses should be properly captured in your model. This capex vs. opex distinction is important both for your job and when
Real Estate Private Equity Model 101: CapEx vs. OpEx Read More »
This third installment in our series looks at one of the key investment metrics of REITs: Net Asset Value, or NAV. For most REIT investors, the comparison of NAV to the share price is a very telling indicator of value, and the type of long term private equity real estate returns that the investment could
Real Estate Investment Trusts (REITs) for Beginners, Part Three Read More »
If you are seeking a career in real estate private equity, you will need to have a basic understanding of REITs. Once you land your first real estate private equity jobs, you’ll gain even more understanding and experience with REITs because they make up one of the largest real estate ownership types in the world.
Real Estate Investment Trusts (REITs) For Beginners, Part Two Read More »
You’ve probably heard the term REIT, but perhaps you aren’t sure what it is. Or maybe you know what “REIT” stands for (real estate investment trust), but that’s about as far as you can take it. At Leveraged Breakdowns, we aim to set you up for your career in real estate private equity. Understanding REITs
Real Estate Investment Trusts (REITs) For Beginners, Part One Read More »
What exactly is a real estate investment case study? It’s basically a story problem like you had in algebra class. But instead of a train leaving Chicago going west at 45 mph, we have a building that is leased to Walgreens for 45 years. A case study is a set of facts that are used
Using Real Estate Investment Case Studies To Sharpen Your Skills Read More »
When you hear talk about the waterfall, understand that this simply means how the profits are divided between the parties involved in the deal. Generally this means how profits are split between the GP (General Partner, your employer) and the LPs (limited partners, or investors in the deal). But in some instances, there may be
Real Estate Private Equity Model 101: The Waterfall Read More »
The third and final installment of this series covers several of the other key terms contained within commercial leases. Some of these terms may come up as part of a real estate private equity interview case study. You can rehearse these on your own or even practice them as part of the real estate private
A Beginner’s Guide To Commercial Leases, Part Three: Other Terms Read More »
Commercial leases are the backbone of the REPE industry. Demonstrating a familiarity or a mastery of the terminology will help you nail a real estate private equity interview. Part one of this series focused on understanding the terminology in commercial leases related to income. Part two will zero in on the expense side of the
A Beginner’s Guide To Commercial Leases, Part Two: Expenses Read More »