Real Estate


The Real Estate Equity Waterfall Modeling Master Class

The Complete Guide To Building Dynamic Real Estate Equity Waterfall Models In Microsoft Excel

4.82 (1091 reviews)


4 hours


Jun 2021

Last Update
Regular Price

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What you will learn

A complete "done-for-you" institutional-level equity waterfall model to use in any real estate transaction.

A thorough understanding of the key components of an equity waterfall and how it is used in real estate investing.

The ability to build a fully functioning, dynamic equity waterfall model in Microsoft Excel to use for any deal in any situation.


Everything you need to know about real estate equity waterfalls, all in one place. 

This course will teach you everything need to know about how an equity waterfall works in real estate transactions, from the underlying mechanisms behind a waterfall, to how an equity waterfall is structured, to how to build an equity waterfall financial model in Excel. Whether you're syndicating a real estate deal on your own, investing as a Limited Partner in a real estate syndication, or you're a current real estate professional looking to add a lucrative skill set to your arsenal, this is a one-stop shop for everything real estate equity waterfall-related.

This course was designed for people from all parts of the real estate spectrum, including:

  • Current or aspiring real estate syndicators who want to earn outsize returns on their investments - Being aligned with investor interests is critical when structuring a real estate transaction, and a clear waterfall structure with incentives based on investment performance is the most direct way to create a win-win relationship for your team and your capital partners. Understanding the mechanisms behind an equity waterfall and having a dynamic waterfall model in your toolkit will allow you to structure your deals in the most advantageous way for both yourself and your investors.

  • Passive real estate investors involved as LPs in real estate syndications who want to invest passively with confidence - The Limited Partner position in real estate investing is a great role - no work involved, an inflation-protected, tax-shielded investment, and experienced management - but do you know how much you're paying in fees? Understanding how a waterfall structure functions and having a dynamic Excel model to calculate true net returns can be the difference between a sound investment and being locked into a watered-down deal for years to come.

  • Current real estate professionals who want to earn more money - Equity waterfall modeling is one of the most desired skill-sets in all of real estate finance, with professionals proficient in this topic earning more than 8.1% above their peers according to national real estate recruiting firm RETS Associates. If you are a current or aspiring real estate professional, understanding the mechanics of an equity waterfall functions and how to build an equity waterfall in Microsoft Excel will put you head and shoulders ahead of your peers and add a rare and lucrative skill-set to your real estate investing arsenal.

Here's what some of our students have had to say:

★★★★★ "I've tried other real estate financial modeling classes, and they tended to be too general (even where they had some hands-on Excel exercises). Justin hit just the right balance between the big picture and the nuts and bolts of building the worksheet, and, therefore, truly understanding it."

★★★★★"Clear and straightforward. Wow! Amazed at this curriculum. He has made something super difficult easy and he explains it super clear. Its like meeting a super cool private equity guy spend the time to show you step by step. He can make your career!"

★★★★★"This course is highly recommended for individuals wanting to learn about equity waterfall modeling. It's obvious that the instructor understands this topic very well and he presents it in a very simplified manner. The process of creating the model from scratch and having the instructor walk you through it on a step-by-step basis really solidified my understanding of this material. Excellent course!"

★★★★★"Highly detailed and informative. Great for analyst who are just getting started. It's like taking an MBA level course!"

★★★★★"This is a phenomenal course as are Justin's other courses. I am a commercial real estate professional working as an analyst at a 'Big Four' broker and have found all these courses to be invaluable, particularly if you are concerned about the technical test for job interviews."

Understanding equity waterfalls will put you miles ahead of the game, whether you're looking to do your first deal or trying to land a job in commercial real estate finance. Looking forward to seeing you in the course!


The Real Estate Equity Waterfall Modeling Master Class
The Real Estate Equity Waterfall Modeling Master Class
The Real Estate Equity Waterfall Modeling Master Class
The Real Estate Equity Waterfall Modeling Master Class



What We Will Cover - Part I

What We Will Cover - Part II

What We Will Cover - Part III

About The Instructor & This Course

How To Get The Most Out Of The Class

The Equity Waterfall Model - What You Will Build - Finalized


Equity Waterfall & Real Estate Syndication Basics

Real Estate Syndication Basics

The General Partner (Sponsor)

The Limited Partner

GP Compensation

GP Promote & Waterfall Structures

Setting Up The Equity Waterfall Model

Equity Waterfall Mechanics

Equity Waterfall Mechanics - Part II

Measuring Investment Returns & Model Introduction

Waterfall Model Set-Up

Equity Contributions, IRR, & Equity Multiple

GP Return Metrics Dashboard & The Promote

Building Out The Waterfall Structure - Part I

Waterfall Structure Part II & LP/GP Cash Flows

Modeling Property Cash Flow Assumptions

Naming Driver Cells

Project-Level Cash Flow Modeling

Building Out Months & Month Ending

Building Out The Net Operating Income

Modeling Dynamic Principal & Interest Loan Payments

Modeling Dynamic Acquisition & Disposition Metrics

Finalizing The Project-Level Cash Flows

Building Out The Preferred Return Tier

GP & LP Equity Contributions

The Preferred Return Structure

Preferred Return Cash Flow Calculations - LP

Preferred Return Cash Flow Calculations - GP

Modeling The Project-Level IRR & Equity Multiple

Building Out Hurdle #2

Building Out Hurdle #2

Hurdle #2 GP & LP Calculations

Modeling Hurdle #2 Cash Flow Distributions

Building Out Hurdle #3 & Hurdle #4

Modeling Hurdle #3

Hurdle #3 LP & GP Distributions

Building Out Hurdle #4

Modeling Partnership-Level Return Metrics

Calculating LP & GP Return Metrics

Modeling The GP Promote At Each Hurdle

Formatting Clean-Up & Model Finalization

Wrapping Up

How To Use This Information

Wrapping Up

BONUS LECTURE: Udemy Student Bonus

BONUS LECTURE: Udemy Student Bonus


Tamás2 October 2020

Great course! I have been in CRE for 8 years, but this was a real eye opener. Wish I had learned about this 5 years ago. The material is first class and Justin really teaches you in a straightforward understandable way

Ross26 September 2020

I have just completed the RE Equity Waterfall modeling master class and the RE Financial modeling Bootcamp course which I really enjoyed. I'm moving on to the Advanced RE Financial modeling course next. I am currently doing a degree in business, majoring in finance and property, and finding this voluntary learning really beneficial. Justin does a great job of sharing his knowledge in a simple and easy to understand way, so looking forward to doing another course.

Randy18 September 2020

Waterfall model explained in a simple way. Pace is good, not too fast. That excel keyboard shortcut is well taught as well!

Joe14 September 2020

Justin, Great course - the structure kept me engaged and I was able to knock it out in one sitting! I found this course very helpful/informative for individuals like myself who work on the brokerage side of the CRE industry and haven't had much deal underwriting experience from the "principal" perspective.

Sarah11 August 2020

Thanks Justin, i really learnt so much watching your classes on Udemy and Youtube - hope to land my next job!

Adam9 February 2020

I think this course was exceptionally well taught and well structured. The teacher was clear, enthusiastic, and well paced. His answers in the Q&A section are clear and comprehensive. Most of all, having a working waterfall model at the end of the course is an amazing resource going forward. Thank you!

John29 January 2020

A great course that gives easy to understand instruction on making a waterfall model, I highly recommend to any aspiring or entry level real estate analysts.

Amanda22 January 2020

This course was a great practice example of a dynamic waterfall model. I love using more advanced formulas and the explanations provided as to what the formulas were doing provided a great amount of detail so I could easily follow along and not get caught up on which cells we're trying to reference. I would definitely recommend this course to a colleague!

Nic17 January 2020

Been searching extensively for a robust step-by-step guide to building a waterfall and this nailed it. Has added bonus of being practical - I will be using this as a template for my equity waterfall tab in my models going forward. Course was easy to follow - thank you!

James12 January 2020

This was the type of instruction I desperately yearned for in my previous career as a PE fund accountant. This helped me understand the "why" regarding the model infinitely better than my job duties did, so I wish I had this information back when I needed it. Excellent walk-through and explanation of some of the more complex parts of the model.

Frank28 December 2019

Excellent course. I have been working in PE Real Estate for the past 3 years and this has long been a gap in skill set, this course really helped with that. Would love to see more course content dedicated towards debt structuring, how different debt plays into the waterfall model, ad refinancing scenarios.

Sam26 December 2019

This is certainly one of the the best Christmas Gift I've received on Christmas. Thanks very much for making this brilliant course, Justin and heartily bestowing your support on my questions.

Jim14 December 2019

I have a fairly good understanding and foundation, however, I am all for following the advice and suggestion to listen to all of the front end of the course. The person teaching this course I like the best as he is thorough, something I can't say for the other person on the courses I have taken, although they are okay I guess, I think building it along with the instructor, especially this instructor. Plus on a couple occasions, I have sent in my worksheet and this instructor has are the repairs and sent it back with an explanation of what was wrong. If I don't see that he is teaching the course I will not purchase the course.

Mark6 November 2019

Outstanding! Even if you don't build a model, you will learn about waterfall calculations and how to interpret syndication information.

Bruno22 October 2019

Very helpful, clear and concise. It is a step by step explanation of a waterfall analysis that the non-initiated can easily understand.


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