Leveraged Breakdowns

Real Estate Private Equity Model 101: Property Tax Incentives

In many real estate projects there will be incentives from the City, County, State, or Federal governments that will have a meaningful impact on a real estate equity investment. Understanding these various incentives is critical to properly modeling the projects and determining accurate project-level private equity real estate returns. Property Tax Incentives The most common … Real Estate Private Equity Model 101: Property Tax Incentives Read More »

Three Sources of Industry Information To Build Real Estate Private Equity Skills

There are lots of sources for industry information as you prepare for a real estate private equity job, or continue to build your skill set. As industry insiders, we have a number of favorites, which we share below. Keep in mind that continuous learning isn’t just a catchphrase, it should be a way of life. … Three Sources of Industry Information To Build Real Estate Private Equity Skills Read More »

Sensitivity Analysis: Quantifying and Communicating Risk

How do you convey the key drivers of property performance to Investment Committee (IC)? The first major hurdle you need to clear as a real estate private equity analyst is being able to construct a reliable and accurate LBO model. That isn’t where your job ends. You also need to be able to test the … Sensitivity Analysis: Quantifying and Communicating Risk Read More »

Do Cap Rates Follow Interest Rates?

This is a very interesting time to begin your real estate private equity career path. In the past year (2019) we have seen interest rates begin to climb up from historic lows, then suddenly turn back down to historic lows again. One of the big questions that always lingers in the REPE industry is whether … Do Cap Rates Follow Interest Rates? Read More »

CMBS Basics, Part Two

Commercial Mortgage Backed Securities (CMBS) play a significant role in providing liquidity to the commercial real estate market. In many ways, CMBS issuance is a bellwether for the overall health and liquidity in the commercial real estate market. During the Great Recession, CMBS lending essentially stopped for several years, and the first issuers back into … CMBS Basics, Part Two Read More »

CMBS Basics, Part One

Breaking down insider lingo is one of our chief strategies at Leveraged Breakdowns. Real estate private equity for beginners can seem daunting with acronyms and phrases that sound familiar, but until you know them inside and out, you won’t be able to interview like an insider. And interviewing like an insider is the key to … CMBS Basics, Part One Read More »

A Beginner’s Guide to Commercial Leases, Part Five: The Final Chapter

This final installment in our series on commercial leases (unless we decide to bring you Commercial Leases: Hobbs and Shaw) will focus on co-tenancy clauses and ground leases. Again, these topics are getting deep into the weeds, but if you are hunting for your first private equity real estate job, this info can really help … A Beginner’s Guide to Commercial Leases, Part Five: The Final Chapter Read More »

Why Opportunity Zones Are All The Rage

Suppose you sit down for a REPE job interview and are asked this question: “If we completed a 1031 exchange into a mixed use project in an Opportunity Zone, exchanging a property with a tax basis of $32 million into a new project of $40 million, how much would my step-up in basis be in … Why Opportunity Zones Are All The Rage Read More »

1031 Exchanges: Managing Tax Liability for Optimal Private Equity Real Estate Returns

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 »

A Beginner’s Guide to Commercial Leases, Part Four: More Terms

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 »
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