The Advanced Real Estate Equity Waterfall Modeling Class
What you'll learn
- Learn to model real estate equity waterfall structures with a GP catch-up clause
- Learn to model real estate equity waterfall structures with an LP clawback clause
- Learn to model real estate equity waterfall structures with multiple preferred returns based on IRR and equity multiple hurdles
- Learn to model real estate equity waterfall structures with cash-on-cash-based preferred return hurdles
Requirements
- Students should have a basic understanding of real estate finance and Excel
- Completion of The Real Estate Equity Waterfall Modeling Master Class is recommended
Description
Welcome to the Advanced Real Estate Equity Waterfall Modeling Class!
In this course, you'll learn how to create financial models for some of the most commonly used JV equity partnership structures in commercial real estate, and how each of these structures can ultimately affect returns to all investors in a deal.
My name is Justin Kivel, and throughout my career, I've worked on over $1.5 billion of closed commercial real estate transactions, working for and with some of the biggest real estate investment, brokerage, and lending firms in the world. After spending almost a decade in the trenches of the industry, I decided to teach the skills I learned on the job over the years, and since then, I've taught tens of thousands of students real estate financial modeling and analysis through the Break Into CRE platform.
This course was created to be a practical, hands-on guide to understanding how some of the most commonly used JV equity waterfall structures actually work in practice, and how to build out financial models to split cash flows between investors.
In this course, we'll walk step-by-step through four different equity waterfall model build-outs, including:
The Cash-on-Cash Waterfall Model: This model incorporates a preferred return and promoted interest using cash-on-cash-based hurdles during operations, as well as the opportunity for the GP to earn promoted interest when the property is sold.
The Dual-Preferred Return Waterfall Model: This model incorporates two preferred returns using IRR and equity multiple-based hurdles, with promoted interest only earned by the GP when both return hurdles are exceeded.
The GP Catch-Up Waterfall Model: This model incorporates a "Catch-Up" clause into the cash flows, with all distributions above an IRR-based preferred return hurdle split based on these terms, up to a maximum GP allocation of all distributions to investors.
The GP Catch-Up With Clawback Waterfall Model: This model incorporates the same "Catch-Up" structure as the original GP Catch-Up Waterfall Model, but also includes an LP clawback mechanism where promoted interest will be returned to the LP if preferred return hurdles aren't exceeded.
Whether you're trying to land a job at a real estate private equity firm and want to make sure you're prepared to model the different waterfall structures you might come across on the job, or if you're raising capital to fund your own deals and just trying to find the best structure for you and your partners, this course will be a great resource to take a deep dive into this topic.
Here's what some of our students have had to say about the course:
★★★★★ "Very clear explanations! I like the repetition through the different examples to embed learning. It's also helpful to say which shortcuts you are doing so that this becomes second nature."
★★★★★ "This is amazing training. It covers those hands-on things which are hard to get without being into the CRE business. Very detailed, error-less explanation of complex scenarios."
★★★★★ "Unbelievable course. I spent the weekend working through this and the prerequisite Equity Waterfall Modeling Master Class. This was the practical deep dive I needed to compliment my real world and academic exposure to Real Estate Private Equity."
★★★★★ "Fantastic course, and just like with Justin's other courses: crammed with great content and hands-on application. No fluff. Just into the materials and the mechanics. This course is rather advanced, but it covers a lot of different techniques, methods, and concepts."
Ready to get started? Just click "Buy Now" button on this page, and I'll see you on the inside!
Who this course is for:
- Real estate investors and investment professionals who want to learn to build advanced equity waterfall structures in Microsoft Excel from scratch
- Real estate entrepreneurs who want to raise capital from investors and calculate cash flow splits between partners in a variety of different waterfall structures
- Aspiring real estate investment professionals who want to pass an Excel modeling exam during the interview process
Instructor
Master real estate financial modeling, advance your career, and earn more money.
If you’re an aspiring real estate investment professional looking to break into the real estate investment field, or a current real estate professional looking to advance your career and increase your compensation, you’re in the right place.
My name is Justin Kivel, and I’m a real estate investment professional with a love for teaching. Throughout my career, I’ve worked on over $1.5 billion of closed acquisitions across multifamily, retail, office, and mixed-use properties. I’ve had the opportunity to work with some of the brightest minds in real estate investing and have spent almost a decade in the industry across private equity, finance, and brokerage roles.
Unfortunately, most of what I know today I had to learn on the job. Although great courses exist on Microsoft Excel and financial modeling, I couldn’t find a resource that was specifically tailored toward real estate investment professionals that would actually walk me through exactly what I needed to know to succeed in the real estate investment industry.
These courses are that resource.
After dozens of phone calls and coffee meetings with college students and aspiring real estate investment professionals, I realized that most people were asking exactly what I was asking when I was in their shoes.
“What skills do I actually need to know to break into the real estate investment industry, or advance in my current real estate investment career?”
These courses were created to teach you those skills.
Our students have gone on to land jobs at some of the top real estate investment, development, and brokerage firms across the globe, including Brookfield Asset Management, Hines, Starwood Capital Group, LaSalle Investment Management, Eastdil Secured, JLL, CBRE, and many more.
Over 80,000 current and aspiring real estate investment professionals have used these courses to help them ace real estate financial modeling interview exams to land their dream jobs, secure consulting gigs with top private equity firms, build (and rebuild) entire financial models from scratch, and confidently analyze their own potential real estate investments.
So whatever that next step in your real estate investment career looks like, these courses are here to help you get there as quickly and efficiently as possible.
Looking forward to seeing you in class!