Anatomy of a useful model ↗
Which assumptions actually drive this decision?
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34 concepts · Same curriculum, wherever you enter.
Modeling foundations
5 conceptsFormulas, units & references ↗
Can someone else follow and safely change the calculation?
Time value of money ↗
What is a future dollar worth at the decision date?
NPV, IRR & dated returns ↗
Does the pattern of cash flows meet the required return?
Model audits & sensitivity ↗
What could change the conclusion, and does the model reconcile?
Income-property investment
5 conceptsUnderwriting an acquisition ↗
What are we buying, and what income can it support?
Rent, vacancy & effective income ↗
How much of the potential rent becomes collectible revenue?
Operating expenses & NOI ↗
What income does the property produce before financing?
LTV, LTC, DSCR & debt yield ↗
How much debt can the property responsibly support?
Cash flows, exits & returns ↗
How much does the owner receive, and when?
Development pro forma
5 conceptsFrom site area to rentable program ↗
How much useful space can this site support?
Design choices change value ↗
Does a design saving improve the investment?
The complete development budget ↗
Have all uses of capital been identified?
Schedule, draws & interest carry ↗
When is capital needed, and what does time cost?
Value, land residual & decision tests ↗
What land price can the project support?
Value-add investment
5 conceptsA defensible value-add thesis ↗
Which intervention creates a benefit users will pay for?
Capex & the cost of downtime ↗
What does the renovation cost while income is interrupted?
Rent & occupancy transitions ↗
How quickly does the improved building earn its target income?
Bridge finance & permanent takeout ↗
Can the stabilized asset repay the temporary facility?
Where value creation comes from ↗
Did the intervention earn more than it cost?
Partnerships & waterfalls
5 conceptsEquity structure & the capital stack ↗
Who supplies capital, bears risk and receives control rights?
Capital return & preferred returns ↗
Which claims are paid before residual profit is shared?
Operating, refinance & exit distributions ↗
What cash is available at each distribution event?
Tiered promotes & hurdles ↗
When does the sponsor participate more strongly in the upside?
Partner returns & agreement audits ↗
What did each partner invest and actually receive?
Multidisciplinary field guides
9 conceptsField guide: Opportunity & vision ↗
Why should this project exist?
Field guide: Market & site ↗
Is there demand, and where should we develop?
Field guide: Diligence & control ↗
Can we responsibly acquire and develop this property?
Field guide: Planning & feasibility ↗
What should we build, and does it make sense?
Field guide: Approvals & commitment ↗
Can we secure the approvals and capital?
Field guide: Design & procurement ↗
How does the concept become buildable?
Field guide: Construction & delivery ↗
Can we deliver safely, on time and on budget?
Field guide: Commissioning & handover ↗
Is the building ready for people and operations?
Field guide: Tenancy & stabilization ↗
Is the asset performing as intended?