Watch Me Model a Real Estate Private Equity Technical Interview Exercise in Excel

Warning: This video is long and boring! But, if you're preparing for a real estate technical interview, you'll likely find value in it. Watch me complete what is an actual real estate private equity modeling test. Download the Excel file and follow along (see notes below for edits).

0:00 - Introduction, Model Setup, and Overview
4:31 - Model Development and Assumptions
10:00 - Project Costs and Equity Modeling
15:18 - Equity, Debt, and Interest Calculations
21:35 - Operations Setup and Rental Income Modeling
28:28 - Operation Months and Expense Recovery
36:38 - Operating Expenses and Cash Flow
44:00 - Finalizing Operations and Terminal Value
51:25 - Property Level Cash Flows and Waterfall Model
58:52 - Equity Contributions and LP/GP Cash Flow
1:07:10 - Finalizing Waterfall Analysis and Review

To download the Excel file that goes along with this video (both the finished version as well as a blank tab to follow along), visit: https://www.adventuresincre.com/watch...

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A Couple of Notes/Corrections:

At 21:20, the formula for the Loan Cash Flow should be Total Project Costs (row 22) minus Equity (row 26), not row 20 minus row 26. This error was fixed around the 26:00 mark, but was not made clear.

The formula in C21 that sums all Construction Interest for the entire development period [=SUM(G21:CR21)] got zeroed out somehow. I didn't realize this had happened until the 1:00:00 minute mark, when I saw my Levered Cash Flow line had equity contributions beyond when I'd expect. Adding the formula in C21 back, corrected the issue.