Leveraged Breakdowns

Real Estate Modeling Test

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 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 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 »

Scroll to Top