Real Estate Partnership Cash Flow Models - Adventures in CRE https://www.adventuresincre.com/re-modeling/excel-models/equity-waterfall/ Real Estate: AI, Financial Modeling, Careers, Education Fri, 18 Jul 2025 12:49:48 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.2 https://www.adventuresincre.com/wp-content/uploads/2021/09/green-background-36x36.png Real Estate Partnership Cash Flow Models - Adventures in CRE https://www.adventuresincre.com/re-modeling/excel-models/equity-waterfall/ 32 32 Real Estate Equity Waterfall Model – IRR and Equity Multiple Hurdles (Updated July 2025) https://www.adventuresincre.com/real-estate-equity-waterfall-model/ Fri, 18 Jul 2025 12:00:58 +0000 http://www.adventuresincre.com/?p=760 Over the years, this real estate equity waterfall with annual periods and IRR or Equity Multiple hurdles has been one of the most popular models in our library of real estate Excel models. It’s been downloaded thousands of times and we’ve received dozens of suggestions for how to improve the model. As a result, we […]

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]]> Real Estate Equity Waterfall Model with Catch Up and Clawback (Updated Dec 2024) https://www.adventuresincre.com/real-estate-equity-waterfall-model-catch-up-clawback/ Thu, 12 Dec 2024 20:16:19 +0000 https://www.adventuresincre.com/?p=36697 A question came up recently in the A.CRE Accelerator’s real estate waterfall modeling course regarding how to model GP Catch Up (i.e. Sponsor Catch Up) and LP Clawback provisions. I put together a quick video tutorial in response to that question, and in doing so I realized I had never shared to A.CRE a real […]

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]]> Watch Me Build a 3-Tier Real Estate Equity Waterfall Model (Updated Aug 2024) https://www.adventuresincre.com/watch-build-equity-waterfall/ Tue, 27 Aug 2024 18:00:03 +0000 https://www.adventuresincre.com/?p=8489 As I’ve mentioned in other Watch Me Build posts, one way to become a better real estate financial modeling professional, is to watch other professionals model. Thus, the more exposure you can get to other’s methods, the more adept a real estate professional you will become. This is especially the case with modeling real estate […]

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]]> Real Estate Equity Waterfall Model With Cash-on-Cash Return Hurdle (Updated Jul 2024) https://www.adventuresincre.com/real-estate-equity-waterfall-model-cash-on-cash-return-hurdle/ Sat, 27 Jul 2024 12:00:42 +0000 https://www.adventuresincre.com/?p=9118 Over the years, Michael and I have built and shared numerous real estate equity waterfall models, all multi-tiered and most with internal rate of return (IRR) hurdles. And as our readers have downloaded those models, I’ve received dozens of requests for an equity waterfall model with a simpler partnership structure. This model seeks to be an […]

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]]> Timing of Preferred Return vs Return of Capital in an Equity Waterfall with IRR Hurdles (Updated May 2024) https://www.adventuresincre.com/timing-of-preferred-return-vs-return-of-capital-in-an-equity-waterfall-with-irr-hurdles/ Fri, 10 May 2024 14:00:28 +0000 https://www.adventuresincre.com/?p=490089 Recently, we had an A.CRE reader ask us about the mechanics of Preferred Return distributions in our equity waterfall models with IRR hurdles. Specifically, he questioned the timing of when and how Preferred Return vs Return of Capital were distributed. In this blog post, I’ll share the response I gave him in order to help […]

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]]> Real Estate Capital Account Tracking Tool (Updated Apr 2024) https://www.adventuresincre.com/real-estate-capital-account-tracking-tool/ Wed, 01 May 2024 16:00:06 +0000 https://www.adventuresincre.com/?p=2610 I’ll be the first to admit that real estate asset management doesn’t get the attention it deserves on AdventuresinCRE.com. The real reason for this is that we’re not necessarily asset management experts. I spent some time working in asset management as an intern and I took my fair share of asset management courses during my graduate real […]

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]]> Watch Me Build – American-Style Real Estate Equity Waterfall (Updated Apr 2024) https://www.adventuresincre.com/watch-me-build-american-style-real-estate-equity-waterfall/ Sun, 28 Apr 2024 12:55:23 +0000 https://www.adventuresincre.com/watch-me-build-pro-forma-multiple-home-building-projects-copy/ A few years ago, I recorded my screen as I built a 3-tier real estate equity waterfall model. What I didn’t mention in that Watch Me Build video, is that the kind of waterfall I built is colloquially called a European-style equity waterfall. And while that type of waterfall is extremely common, both in the […]

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]]> Multifamily Development Model (Updated April 2024) https://www.adventuresincre.com/mutlifamily-development-model/ Wed, 17 Apr 2024 14:40:19 +0000 https://www.adventuresincre.com/?p=833957 Not to be confused with Spencer’s masterpiece, The A.CRE Apartment Development Model, I decided to build a second option on our website for multifamily development with a different feel. For us true modeling nerds out there, we know that financial modeling and the way we present our underwriting models is equal parts math and art. […]

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]]> RV Park Development Model (Initial Release) https://www.adventuresincre.com/rv-park-development-model/ Tue, 30 Jan 2024 16:02:58 +0000 https://www.adventuresincre.com/rv-park-acquisition-model-copy/ Created to underwrite one of my projects, RV@Olympic, the RV Park Development Model is something I built and have been working with frequently over the past year. What’s especially unique about this model is that the template you are getting here actually contains the current underwriting projections of this project as of the date of […]

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]]> Scenario Analysis Tool using the Equity Waterfall Model (UPDATED MAY 2022) https://www.adventuresincre.com/scenario-analysis-with-the-equity-waterfall-model/ Tue, 24 May 2022 13:00:03 +0000 http://www.adventuresincre.com/?p=1011 I received a question this morning asking how to use scenario (or sensitivity) analysis with our Real Estate Equity Waterfall Model. I started to answer the question via email, decided to build an Excel file to go along with my answer, and ultimately concluded that a video would be the easiest way to walk you through […]

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]]> 4-Tier Equity Multiple Waterfall – Download and Watch Me Build (UPDATED APR 2022) https://www.adventuresincre.com/equity-multiple-waterfall/ Thu, 28 Apr 2022 13:00:53 +0000 https://www.adventuresincre.com/?p=8507 Here is a simple, yet very powerful, 4-tier equity multiple waterfall module. This post contains both a completed version of the module ready to plug into a real estate financial model as well as a ‘Watch Me Build’ template and companion video where I walk the user step by step through building it out. Are […]

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]]> Real Estate Equity Waterfall Model – Monthly Periods (Updated Jul 2021) https://www.adventuresincre.com/excel-real-estate-equity-waterfall-model-monthly-periods/ Tue, 27 Jul 2021 23:15:16 +0000 http://www.adventuresincre.com/?p=1149 When I decided to share my real estate equity waterfall model in Excel, I never imagined it would be as popular as it has. The model has been downloaded thousands times and many of you have written to extend your thanks for sharing. It is gratifying to know that the model has been put to […]

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]]> Watch Me Build – IRR Partitioning in Excel https://www.adventuresincre.com/irr-partitioning-in-excel/ Wed, 16 Sep 2020 21:25:33 +0000 http://www.adventuresincre.com/?p=1472 In this post, I’d like to show you how to partition the internal rate of return of your real estate investment in Excel. I also throw in a quick equity multiple partition, to highlight how the time value of money affects your returns. I’ve recorded a short Watch Me Build video tutorial to illustrate the […]

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]]> 3 Tiered Waterfall Module Added to the Condo Development Model https://www.adventuresincre.com/condo-waterfall/ Mon, 04 Sep 2017 07:03:45 +0000 https://www.adventuresincre.com/?p=7719 After receiving a few requests, I’ve finally gotten around to adding an equity waterfall module to the Condominium Development Model. This module allows you to model partnership splits up to three tiers using either equity multiple hurdles or IRR hurdles. Additionally, you can model for a preferred return for the limited partner where either (1) […]

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]]> Waterfall Model For Real Estate Joint Ventures with Catch Up https://www.adventuresincre.com/new-real-estate-jv-waterfall-model/ Tue, 16 Feb 2016 02:56:40 +0000 http://www.adventuresincre.com/?p=1825 I’ve just wrapped up a new JV waterfall model with catch up clause that I am excited to share on the site. This model was built as an addition to my back-of-the envelope retail/industrial/office acquisitions model I posted a few weeks back. And like the acquisition model, I made an attempt to make this as intuitive as possible for […]

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