Real Estate Modeling 1: Introduction to Real Estate Modeling

Real Estate Modeling 1: Introduction to Real Estate Modeling

Flashcards What are the 5 traditional property types? Multifamily, Office, Retail, Industrial, and Hotel Which of the following would you find on the Inputs & Drivers tab of a real estate financial model?- Sources and uses- Yield summary- Property overview- JV waterfall Property Overview In which lease structure(s) are tenants required to pay expenses?1. Triple Net (NNN)2. Full Service (FS)3.Modified Gross (MG)

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Which of these is FALSE?- Argus is helpful because lease expirations introduce probabilities into cash flow calculations.- Argus is helpful because commercial tenants often have different lease terms.- Argus is used to project cash flows for commercial properties.- Argus is often used for complete property underwritings.Argus is often used for complete property underwritings.Real estate models are heavily reliant on which of the following?- Statistical functions- What-If analyses- Text formulas- Dates and timelines Dates and timelines Which formula is frequently used in real estate financial models when dealing with dates and timelines?

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What is the best way to provide additional details about your assumptions in a model?Use cell comments Which of the following is not a formatting and layout best practice for financial modeling?- Always password protecting your model- Always assuming the model will be used by someone else- Being predictable- Creating "plug-and-play" models Always password protecting your model Which of the following is not one of the main sheets of a real estate financial model?- Inputs & Drivers- Transaction Summary- Engine- Model Engine What is the main driver of property values? Tenants and their ability to pay rent What is Argus?A software program used to project cash flows for commercial property types.Which of the following is a supporting tab for a multifamily model?- Model- Historical Financials- Annual- Inputs Historial Financials Which formula is frequently used when working with dates in a model?

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Which of the following would you find on the Transaction Summary tab of a real estate financial model?- Investment returns- Revenue drivers- Expense drivers- Timing assumptions Investment Returns

Which of the following should you avoid?- Naming cells and ranges- Changing cell font colors- Changing cell background colors- Referencing cells on different sheets Naming cells and ranges Where will your manager primarily look to understand your model?Transaction summary tab Which of the following is not a way in which revenue is generated by a real estate asset?- Broker fees- Rent- Parking income- Expense reimbursements Broker fees Which sheets does Wall Street Prep teach as the main sheets in a real estate model?1. Inputs & Drivers2. Argus3.Model4. Transaction Summary5. Monthly CF 1, 3, and 4 Which of the following real estate functions does not rely on financial models?- Private equity- Brokers- Lenders- Tenants Tenants In a model, what font color should hard-coded numbers (inputs) be?Blue What is a good alternative to merging cells? Center Across Selection Which of the following is a supporting tab for a commercial model?- Transaction Summary- Debt- Argus Outputs- Overview Argus Outputs Which of the following is a type of commercial model?- Hotel- Multifamily- Office- Land Office What is a good way to keep track of assumptions when building a financial model?Microsoft Excel cell comments