Dec 27 2023
Episode 132 - Cracking the Code: Modeling Commercial Real Estate Deals in Real Time
Today hosts Braden Cheek, Brian Duck and Joel Thompson go through a live-deal analysis, highligting the key components to look at while analyzing commercial real estate properties.
Time Stamps:
0:00: Introduction to smart board live deal analysis.
1:19: Emphasizing the importance of experience in deal analysis.
2:23: Comparing real estate deals to car purchases and the need for daily analysis.
3:38: Introduction to West Ridge Plaza in Topeka, Kansas.
4:51: Reviewing property details, condition, and tenant dynamics.
6:00: Analyzing rent roll, lease terms, and tenant distribution.
8:25: Examining benefits of location in a busy shopping corridor.
10:39: Evaluating lease expiration dates and minimizing risk.
12:59: Quick overview of financial model with net operating income.
15:07: Insights into modeling tips, especially cash and deferred maintenance.
17:19: Emphasizing reasonable exit cap assumptions for accurate modeling.
20:45: Explaining rationale behind exit cap assumption and total cost of sale.
22:52: Analysis results, including equity, cash flow, and debt service coverage.
24:03: Significance of metrics like cash on cash, equity multiple, and five-year IRR.
25:17: Highlighting LP's attractive returns, especially cash on cash and five-year IRR.
26:22: Clarification on investor IRR and considering the assumed property sale year.
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Links mentioned in this episode:
www.TheCriterionFund.com
www.HowToInvestInCRE.TV
Invest.HowToInvestInCRE.com
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