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 »
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 »
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 »
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 »
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 »
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 »
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 »
With any real estate investment, accurately determining the value of the project at a point in time is one of the most critical pieces of information you’ll use. Real estate values change over time, and a myriad of factors influence the value. Appraisals represent an independent professional’s estimate of the market value of a property
Property Value and Appraisals are Building Blocks in Your Career Read More »
Rarely will a real estate project be funded solely with owner/investor cash. This may be wise in certain instances, yet not often. For properties that will generate cash flow, leverage helps to lower the cost of capital and boost investment returns. Beyond vanilla mortgages for stabilized properties, construction financing introduces additional complexities. Banks and credit
Construction Financing For REPE Beginners Read More »
If you want a career in a real estate private equity firm, you aren’t alone. Any single job opening attracts fierce competition. Thus, to get a career in real estate private equity, you need to stand out from the crowd. Generic candidates don’t get hired. Unfortunately, many candidates struggle to set themselves apart.