Real Estate Mortgage and Debt Models - Adventures in CRE

Understanding Stabilization Through The Lens Of Operating Expense Ratio

Arturo Parada — Thu, 07 Aug 2025 21:58:52 +0000

The term “stabilized” is deeply embedded in the language of real estate. It shows up frequently in financial models, offering memoranda, development strategies, and underwriting assumptions. So frequently, in fact, that its meaning is often taken for granted. Yet when examined more closely, the concept reveals itself to be far more nuanced than it first […]

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30/360, Actual/365, and Actual/360 – How Lenders Calculate Interest on CRE Loans – Some Important Insights (Updated July 2025)

Michael Belasco — Mon, 21 Jul 2025 12:00:05 +0000

(Updated August 7, 2019 to include a Watch Me Build video and Downloadable file) Commercial real estate lenders commonly calculate loans in three ways: 30/360, Actual/365 (aka 365/365), and Actual/360 (aka 365/360). Real estate professionals should be aware of these methods if they want to understand the real interest rate as well as the total amount of interest […]

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Watch Me Build a Dynamic Mortgage Amortization Table in Excel (Updated September 2024)

Spencer Burton — Wed, 25 Sep 2024 18:30:42 +0000

There are a few basic, yet fundamental, real estate modeling skills you must master before anyone will take you seriously as a real estate professional. Building a mortgage amortization schedule is one of them. Virtually every model you create will require this skill – or some variation of what you do when you build an amortization table. […]

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Loan Payment Schedule and Balance Tracking Tool (Updated Aug 2024)

Spencer Burton — Fri, 09 Aug 2024 18:30:26 +0000

A childhood friend called me this week and asked for a favor. He is the lender on a private real estate loan and was wanting a way to personally service the loan. Namely, he needed a tool to issue monthly invoices, track the principal vs interest paid in each month, and calculate the current loan […]

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Linear Mortgage Payment Schedule Tool (Updated July 2024)

Spencer Burton — Wed, 24 Jul 2024 13:00:40 +0000

We recently shared a new modeling test to our library of real estate case studies entitled UK Debt Advisory Firm Modeling Test. In that case study, the test asked the real estate professional to analyze the returns of three different debt options. Two of those debt options include a type of mortgage called a linear […]

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Advanced Mortgage Amortization Module (Updated May 2024)

Spencer Burton — Sun, 26 May 2024 17:00:58 +0000

In recent months, I’ve been working on an advanced real estate investment amortization table with interest-only capability, fixed and variable interest rates, multiple interest calculation methods (i.e. 30/360, Actual/Actual, Actual/365, Actual/360), monthly and annual periods, duration calculation, lender yield calculation, average life calculation, static and dynamic debt service payments, loan assumptions, and more. This module […]

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Real Estate Debt Module in Excel (Updated May 2024)

Spencer Burton — Tue, 14 May 2024 13:00:37 +0000

I thought I’d share the real estate debt module I originally built for the ARGUS alternative in Excel. Most debt modules I’ve seen in real estate financial models only include the ability to model fully amortizing senior debt. Mike challenged me some time ago to come up with a more robust option, and this debt […]

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Advanced Mortgage Amortization Schedule – Custom GPT by A.CRE

Spencer Burton — Sat, 27 Apr 2024 17:28:23 +0000

At A.CRE, we’ve built dozens of custom GPTs for internal and external purposes. Some of the GPTs have general application, while others are custom GPTs specifically for commercial real estate. One such CRE-specific GPT that we recently built and that I’m particularly excited to share today is our first real estate analyst GPT: our Advanced […]

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Commercial Mortgage Loan Analysis Model (Updated Mar 2024)

Spencer Burton — Thu, 07 Mar 2024 17:22:05 +0000

Over the years, I’ve received various requests to augment our library of real estate Excel models to include a model for underwriting and analyzing commercial mortgage loans. Specifically, people have asked for a tool to calculate the loan amount (ie. loan sizing) based on a combination of tests – debt service coverage ratio, loan-to-value, and […]

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Refinance Risk Analysis Tool in Excel (Updated Nov 2023)

Spencer Burton — Sat, 04 Nov 2023 14:19:18 +0000

Generally speaking, equity real estate investors spend their time modeling the upside while their debt partners spend their time modeling the downside. Equity investors generally focus on an investment’s internal rate of return, cash-on-cash return, equity multiple and other return metrics while debt investors focus on debt coverage, loan to value, debt yield and refinance […]

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Construction Draw Schedule: Accounting For True LTC (Updated Apr 2022)

Michael Belasco — Wed, 20 Apr 2022 13:00:27 +0000

When lenders provide debt for a development project, they lend based on a Loan-to-Cost ratio (LTC), which is simply the percent of the total budget the lender will agree to lend to the borrower. So, if a project costs $10MM, and a lender loans $6MM, the lender is lending at a 60% LTC. However, the […]

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Dynamic Amortization Schedule (Updated 2.06.2020)

Michael Belasco — Thu, 06 Feb 2020 14:27:29 +0000

This is a dynamic amortization schedule for debt that gives the user the capability to model a loan with an interest only period up front and an amortizing floating rate debt repayment period once the interest only period is over. This module also allows the user to model other more straightforward scenarios such as an […]

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3-Tiered Acquisition Debt Module

Michael Belasco — Tue, 26 Feb 2019 23:32:34 +0000

This is a 3-tiered debt module that will allow the user to add one to three tiers of debt to his or her real estate DCF model. Includes the option to layer in senior debt, secondary debt, and mezzanine debt; calculate interest on either a 30/360, actual/360, or actual/365 basis; and model additional proceeds (i.e. […]

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