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4.1 Value-Add CRE: Find, Underwrite & Execute

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Overview
Curriculum
  • 9 Sections
  • 36 Lessons
  • 36 Quizzes
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The Value-Add Thesis, What You're Actually Betting On
4 Lessons4 Quizzes
  1. Lesson 1.1: Core-Plus vs. Value-Add vs. Opportunistic: The Risk/Return Spectrum
    Preview
  2. Quiz 1.1: Core-Plus vs. Value-Add vs. Opportunistic: The Risk/Return Spectrum
  3. Lesson 1.2: The Three Sources of Value-Add Return
  4. Quiz 1.2: The Three Sources of Value-Add Return
  5. Lesson 1.3: Why Value-Add Underperforms: The Four Failure Modes
  6. Quiz 1.3: Why Value-Add Underperforms: The Four Failure Modes
  7. Lesson 1.4: The Value-Add Hypothesis: A Falsifiable Bet
  8. Quiz 1.4: The Value-Add Hypothesis: A Falsifiable Bet
Finding Value-Add Deals, The Hunt
5 Lessons5 Quizzes
  1. Lesson 2.1: Off-Market vs. On-Market Value-Add: Where the Real Opportunities Hide
  2. Quiz 2.1: Off-Market vs. On-Market Value-Add: Where the Real Opportunities Hide
  3. Lesson 2.2: Reading Signals: What Tells You a Property Is a Value-Add Candidate
  4. Quiz 2.2: Reading Signals: What Tells You a Property Is a Value-Add Candidate
  5. Lesson 2.3: Building a Deal Pipeline: Brokers, CoStar, and Systematic Sourcing
  6. Quiz 2.3: Building a Deal Pipeline: Brokers, CoStar, and Systematic Sourcing
  7. Lesson 2.4: The Quick Underwrite: A 15-Minute Screen
  8. Quiz 2.4: The Quick Underwrite: A 15-Minute Screen
  9. Lesson 2.5: Competitive Dynamics: How to Win Without Overpaying
  10. Quiz 2.5: Competitive Dynamics: How to Win Without Overpaying
Underwriting the Value-Add Deal
5 Lessons5 Quizzes
  1. Lesson 3.1: The Two-Period Model: As-Is NOI vs. Stabilized NOI
  2. Quiz 3.1: The Two-Period Model: As-Is NOI vs. Stabilized NOI
  3. Lesson 3.2: Renovation Budget Construction: Hard Costs, Soft Costs, Contingency
  4. Quiz 3.2: Renovation Budget Construction: Hard Costs, Soft Costs, Contingency
  5. Lesson 3.3: Timing Risk: Lease-Up Periods and the J-Curve
  6. Quiz 3.3: Timing Risk: Lease-Up Periods and the J-Curve
  7. Lesson 3.4: The Stabilized Value and Back-Solving Your Max Acquisition Price
  8. Quiz 3.4: The Stabilized Value and Back-Solving Your Max Acquisition Price
  9. Lesson 3.5: Sensitivity Tables: What Kills This Deal
  10. Quiz 3.5: Sensitivity Tables: What Kills This Deal
The Capital Stack for Value-Add
4 Lessons4 Quizzes
  1. Lesson 4.1: Bridge Debt: Why Value-Add Uses Floating-Rate, IO Loans
  2. Quiz 4.1: Bridge Debt: Why Value-Add Uses Floating-Rate, IO Loans
  3. Lesson 4.2: Preferred Equity and Mezz: Filling the Gap
  4. Quiz 4.2: Preferred Equity and Mezz: Filling the Gap
  5. Lesson 4.3: LP/GP Structures: Promote, Preferred Return, and Catch-Up
  6. Quiz 4.3: LP/GP Structures: Promote, Preferred Return, and Catch-Up
  7. Lesson 4.4: How Lenders Underwrite Renovation Risk: Holdbacks, Draws, and Inspections
  8. Quiz 4.4: How Lenders Underwrite Renovation Risk: Holdbacks, Draws, and Inspections
Execution, Managing the Renovation
4 Lessons4 Quizzes
  1. Lesson 5.1: The Renovation Management Playbook: GC Selection, Contracts, and Owner's Rep
  2. Quiz 5.1: The Renovation Management Playbook: GC Selection, Contracts, and Owner's Rep
  3. Lesson 5.2: Scope Creep and Change Order Management: The #1 Budget Killer
  4. Quiz 5.2: Scope Creep and Change Order Management: The #1 Budget Killer
  5. Lesson 5.3: Renovation Sequencing in Occupied Buildings
  6. Quiz 5.3: Renovation Sequencing in Occupied Buildings
  7. Lesson 5.4: Timing the Lease-Up: When to Start Marketing and How to Set Rents
  8. Quiz 5.4: Timing the Lease-Up: When to Start Marketing and How to Set Rents
Lease-Up Strategy and Stabilization
4 Lessons4 Quizzes
  1. Lesson 6.1: Leasing Value-Add Space: Concessions, Pre-Leasing, and Velocity
  2. Quiz 6.1: Leasing Value-Add Space: Concessions, Pre-Leasing, and Velocity
  3. Lesson 6.2: Rent Comps and Setting the Right Asking Rent
  4. Quiz 6.2: Rent Comps and Setting the Right Asking Rent
  5. Lesson 6.3: Measuring Stabilization: When Is the Asset "Done"?
  6. Quiz 6.3: Measuring Stabilization: When Is the Asset "Done"?
  7. Lesson 6.4: The Stabilization Report: What Lenders and Equity Partners Want to See
  8. Quiz 6.4: The Stabilization Report: What Lenders and Equity Partners Want to See
The Exit, Refinance or Sell
5 Lessons5 Quizzes
  1. Lesson 7.1: Refinance vs. Sell: The Decision Framework
  2. Quiz 7.1: Refinance vs. Sell: The Decision Framework
  3. Lesson 7.2: The Cash-Out Refinance: Tax-Efficient Equity Return
  4. Quiz 7.2: The Cash-Out Refinance: Tax-Efficient Equity Return
  5. Lesson 7.3: Exit Cap Selection: Building a Defensible Assumption
  6. Quiz 7.3: Exit Cap Selection: Building a Defensible Assumption
  7. Lesson 7.4: Marketing the Value-Add Story to Buyers
  8. Quiz 7.4: Marketing the Value-Add Story to Buyers
  9. Lesson 7.5: Waterfall Math at Exit: Calculating LP and GP Proceeds
  10. Quiz 7.5: Waterfall Math at Exit: Calculating LP and GP Proceeds
Capstone, Underwrite a Multifamily Value-Add Deal
5 Lessons4 Quizzes
  1. Lesson 8.1: Deal Setup: What You've Been Given
  2. Quiz 8.1: Deal Setup: What You've Been Given
  3. Lesson 8.2: The Analysis: What Went Wrong and What the Numbers Tell You
  4. Quiz 8.2: The Analysis: What Went Wrong and What the Numbers Tell You
  5. Lesson 8.3: The Decision: Would a Pro Buy This Deal?
  6. Quiz 8.3: The Decision: Would a Pro Buy This Deal?
  7. Lesson 8.4: The Pro Lens: Pattern Recognition for Value-Add Deals
  8. Quiz 8.4: The Pro Lens: Pattern Recognition for Value-Add Deals
  9. Lesson 8.q: Module 8 Review Quiz
Final Exam
1 Quiz
  1. Value-Add CRE: Find, Underwrite & Execute, Final Exam

Value-add is the strategy behind most CRE wealth, and the one most likely to blow up in the wrong hands. You walk the whole play.

You define the thesis, find the deal, underwrite the business plan, and build the capital stack. Then execution, lease-up and stabilization, and the exit through refinance or sale.

Eight modules, 36 written lessons, 135 practice questions, and a graded final exam with a certificate. The capstone underwrites a multifamily value-add deal. Self-paced, 12 months of access included.

You control the asset, so you control the upside.

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