Leveraged Breakdowns

Real Estate Private Equity Model 101: CapEx vs. OpEx

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 »

Real Estate Investment Trusts (REITs) for Beginners, Part Three

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 »

Real Estate Investment Trusts (REITs) For Beginners, Part Two

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 »

Real Estate Investment Trusts (REITs) For Beginners, Part One

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 »

Using Real Estate Investment Case Studies To Sharpen Your Skills

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 »

Real Estate Private Equity Model 101: The Waterfall

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 »

A Beginner’s Guide To Commercial Leases, Part Three: Other Terms

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 »

A Beginner’s Guide To Commercial Leases, Part Two: Expenses

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 »

A Beginner’s Guide To Commercial Leases, Part One: Income

The terms and conditions within a commercial lease can make or break a deal. Analysts must fully understand each of these terms if they want to build practical and effective LBO models. The lingo used can initially be confusing, but with practice you’ll get the hang of it. Private equity real estate returns for stabilized … A Beginner’s Guide To Commercial Leases, Part One: Income Read More »

Top Real Estate Private Equity Firms, Part Two: Brookfield

This series covers the top real estate private equity firms. Each post briefly describes the subject fund’s size, history, and key real estate equity investments and concludes with questions to help develop your investing mindset by critically reviewing the firm’s key transactions. For a real estate private equity beginner, these posts will broaden your industry … Top Real Estate Private Equity Firms, Part Two: Brookfield Read More »
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