This is a fully functional, institutional quality and dynamic real estate Development Financial Model. It’s a powerful model, yet, very user-friendly that will provide to the user a detailed Excel spreadsheet in which, the viability of an investment in a multi-family real-estate property can be accessed with accuracy.
• Dynamic Monthly & Annual Cash Flow: in order to calculate the key investments metrics needed to determine the feasibility of the project, and the overall value of a potential selling the cash flow are calculated in a monthly base;
• Because is a developing project model, the lease-up forecast takes into to account the fact that during the construction phase there is no or limited revenue, and the construction loan interests are capitalized.
• Dynamic construction budget: the construction expenses are modeled following a s curve (normal distribution);
• Dynamic equity financing: unlike an existing property acquisition where you only need to take your purchase price and multiply by certain percentage and get the loan/equity amount required, this model works backwards to get the required amount and timing for Equity/loan funding.
• Construction Loan: The model assumes that first the constructions expenses are first funded with Equity, once we draw all of our equity we resort to debt;
• Permanent Finance: the model also covers a permanent financing, so once we actually have built out the property and the project has been stabilized, we can refinance the project;
• Equity Waterfall Model: the template provides a 3 tier Equity waterfall model;
• Scenarios: The scenarios modeling sheets provides four possible scenarios based on the Rent, Vacancy, construction Costs and exit Cap rate variance, etc.
• The template is provided with information from a hypothetical property, for demonstration purposes;
• The investment summary sheet provides an overview of the property based on several key metrics and assumptions.