Real Estate Private Equity (REPE) Guide
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REIT Guide (Industry Overview and Valuation Drivers)
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Cap Rate: Understand the Most Important Real Estate Metric
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Demystifying Funds from Operations (FFO)
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Real Estate Financial Modeling Case Study (Excel Template)
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Insider's Guide to the Top Real Estate Investing Books (REPE)
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All Real Estate Content
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Adjusted Funds from Operations (AFFO)
Adjusted Funds from Operations (AFFO)What is AFFO? Adjusted Funds from Operations (AFFO) measures the financial performance of real estate investment trusts (REITs), particularly in their capacity to support the issuance of dividends to...
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Cap Rate
Cap RateWhat is Cap Rate? The Cap Rate, or capitalization rate, is calculated as an investment’s net operating income divided by the value of the investment and is expressed as a percentage.
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Cash on Cash Return
Cash on Cash ReturnWhat is Cash on Cash Return? The Cash on Cash Return is a real estate metric comparing an investment property’s pre-tax cash flows to the initial equity investment.
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Commercial Real Estate Interview Questions
Commercial Real Estate Interview QuestionsCommon Commercial Real Estate Interview Questions We’ve compiled the most frequently asked commercial real estate interview questions in the following post to help candidates prepare for CRE rol...
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Funds from Operations (FFO)
Funds from Operations (FFO)What is FFO? Funds from Operations (FFO) is a measure of cash generated by a Real Estate Investment Trust (REIT).
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Gross Rent Multiplier (GRM)
Gross Rent Multiplier (GRM)What is Gross Rent Multiplier? The Gross Rent Multiplier (GRM) compares a property’s fair market value to its expected gross annual rental income. The ratio between a real estate property investment’s...
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Leasehold Improvements
Leasehold ImprovementsWhat are Lease Improvements? Leasehold Improvements are expenditures that relate to the improvement of a leased property, which are amortized over either the lease term or the estimated useful life.
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Lessor vs. Lessee
Lessor vs. LesseeWhat is Lessor vs. Lessee? The difference between a Lessor vs. a Lessee is that the lessor lends an asset, such as equipment or property, to the lessee, in exchange for periodic interest payments thro...
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Loan to Value Ratio (LTV)
Loan to Value Ratio (LTV)What is Loan to Value? The Loan to Value Ratio (LTV) describes the relationship between a loan amount and the appraised fair value of the asset securing the loan, e.g. property, home, automobile.
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Net Absorption
Net AbsorptionWhat is Net Absorption? Net Absorption measures the supply and demand in the commercial real estate market, i.e. the change in tenant demand relative to the supply available in the market.
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Net Effective Rent
Net Effective RentWhat is Net Effective Rent? Net Effective Rent is the actual rental cost paid by a renter, factoring in deductions related to concessions and promotions.
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Net Operating Income (NOI)
Net Operating Income (NOI)What is Net Operating Income (NOI)? Net Operating Income (NOI) is the most important profit measure in real estate. It strives to isolate to core operating profits of real estate assets, so as to avo...
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NOI vs. EBITDA
NOI vs. EBITDAWhat’s the Difference Between NOI vs. EBITDA? NOI and EBITDA are two similar measures of profitability in real estate with some key differences.
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Occupancy Rate
Occupancy RateWhat is the Occupancy Rate? The Occupancy Rate represents the ratio of occupied to total rental units. The formula for calculating the occupancy rate divides the number of occupied rooms by the total...
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Real Assets vs. Financial Assets
Real Assets vs. Financial AssetsWhat are Real Assets? Real Assets are tangible resources, namely real estate, infrastructure, and commodities, with an intrinsic value tied to their utility, i.e. ability to produce goods or services.
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Real Estate Investment Firms
Real Estate Investment FirmsWhat are Real Estate Investment Firms? If you’ve ever purchased a single family home, you are likely already familiar with the parties involved in real estate: You have the seller (usually just...
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Real Estate Multifamily Acquisition Financial Model
Real Estate Multifamily Acquisition Financial ModelReal Estate Multifamily Acquisition Model Introduction In this article, we will walk you through a back-of-the-envelope (“BoE”) Multifamily Acquisition Model that introduces some of the co...
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Real Estate Private Equity (REPE)
Real Estate Private Equity (REPE)What is Real Estate Private Equity? Real Estate Private Equity (REPE) or Private Equity Real Estate (PERE) refers to firms that raise capital to acquire, develop, operate, improve, and sell buildings...
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REIT Industry Guide
REIT Industry GuideWhat is a REIT? Real estate investment trusts (“REITS”) are companies that own real estate portfolios across a range of property sectors such as offices, retail, apartments, hospitals and...
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REIT Valuation Methods
REIT Valuation MethodsREIT Valuation Methods REIT Valuation is commonly performed by analysts using the following 4 approaches Net asset value (“NAV”) Discounted cash flow (“DCF”) Dividend discount model (“DDM”) Multiples...
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REPE Book Recommendations
REPE Book RecommendationsBest Real Estate Books As a real estate private equity professional, I have certain "must-read" books on my bookshelf. Below is a list of those books, broken down by book types. Please note that we d...
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Vacancy Loss
Vacancy LossWhat is Vacancy Loss? Vacancy Loss, or “credit loss”, is the rental income lost by a property owner from unoccupied space, i.e. vacant units with no tenants.
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Vacancy Rate
Vacancy RateWhat is Vacancy Rate? The Vacancy Rate refers to the percentage of unoccupied units relative to the total number of rental units available at a property over a specified period. An unoccupied unit doe...
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