Financial modeling is one of the most important skills that a real estate professional can have in his arsenal. Building complex models in excel should be second nature, however it’s a skill that many professionals lack. Josh Kahr (NYU Real Estate grad), over at Kahr Real Estate is a leading provider of excel financial modeling courses. With years of teaching experience, he’s learned many of the common pitfalls students encounter when learning financial modeling, and has attempted to help students by providing online live models, downloadable excel code, and excel tutorial videos. I covered a few of these videos in a previous post, however he has since added a variety of features.
Online Live Models
Josh has created a few live online models where students can enter real data and see the results on their web browser. He’s created a model for Manual Iterations to learn how to calculate construction loans more effectively and without using circular references in excel. He’s created an IRR Lookback model which is a commonly used financial structure in partnerships. Simply enter your cashflows and “hurdle” rates, and the model will tell you the IRR for the developer and the investor. Lastly, he’s created a simple five tenant commercial cash flow model. These models are a great way for students to play with the numbers and see how each input effects the subsequent output.
Downloadable Excel Code
Josh has also created a few models available for download. The first file is Automatic vs. Manual Iterations:
Automatic vs. Manual Iterations
Next, he’s created a file that demonstrates how to convert monthly cashflows to quarterly and how to convert quarterly to annual cash flows (uses SUM and OFFSET).
Converting-Months-to-Quarters-to-Years
And the final file he’s created shows how to calculate how many unique tenants there are in a rent roll using COUNT, SUM, IF, FREQUENCY, and MATCH.
Video Tutorial
Josh has stressed the difference between automatic and manual iterations, so naturally he’s created a video which talks about the pros and cons and which method is preferred.
I hope you find these resources useful, please post any specific questions you may have in the comment section below.
