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. *Be Sure to check us out on Spotify and Apple Podcasts for the Audio version of today's episode!** https://open.spotify.com/show/08KmNvqGV5HjmHUC8fLuce https://podcasts.apple.com/us/podcast/how-to-invest-in-commercial-real-estate/id1543470290 Leave a review and win FREE MERCH! https://podcasts.apple.com/us/podcast/how-to-invest-in-commercial-real-estate/id1543470290 Links mentioned in this episode: www.TheCriterionFund.com www.HowToInvestInCRE.TV Invest.HowToInvestInCRE.com To sign up for our exclusive investor list, click below. https://www.thecriterionfund.com/join-our-investor-list