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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 […]

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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.

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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

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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

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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

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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.

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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

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