Overview

 Use our Financial Model to plan the Self-Storage
construction, and subsequent rental operations for several years before exiting
your investment. The model generates cash flows on a project and equity basis and
calculates the relevant metrics to assess the feasibility of your investment
(cash on cash, Internal Rate of Return, net present value, loan to value, debt
yield, coverage ratio and DSCR). The financing options for the project include
equity funding from investors and an amortizing loan.

 

So, a quick overview of the model, in the contents tab you
can see the structure of the model and by clicking on any of the headlines to
be redirected to the relevant worksheet.

 

On the manual tab you can feed the general information for
the model such as: model name, responsible, timeline of the model and date and
currency conventions.

 

Additionally, there is a description of the color coding of
the model in the same tab. Inputs are always depicted with a yellow fill and
blue letters, call up (that is direct links from other cells) are filled in
light blue with blue letters while calculations are depicted with white fill
and black characters.

 

There is also a color coding for the various tabs of the
model. Yellow tabs are mostly assumptions tabs, grey tabs are calculations
tabs, blue tabs are outputs tabs (that is effectively results or graphs) and
finally light blue tabs are admin tabs (for example: the cover page, contents,
and checks).

 

Moving on to the inputs tab, you can adjust the various
assumptions of the model based on the specifications and requirements of your
business (in yellow whatever can be amended as an assumption). So effectively
you can adjust a set of inputs such as construction costs (Land & Related
Costs, Administrative Costs, Permits and Other, Hard Costs, Building
Operations, Closing Costs, Finance Costs), along with monthly rental revenue
for each unit, percentage vacancy per unit, rent escalation rates, bad debt and
other revenues, debt and equity financing, management expenses, repairs &
maintenance, refurbishments, utilities, marketing, and insurance, as well as
property taxes. Afterwards you can set debt financing assumptions (interest
rates, tenor in years, loan type, and debt issuance costs), and valuation
assumptions such as the exit year when the self-storage facility will be sold,
the exit cap rate and selling costs, as well as the discount rates used (project
and equity).

 

On the calculation tab, all calculations are performed. The
calculations follow the same logical flow as the in the inputs tab. As already
mentioned, no inputs from the user are needed here, as all the inputs are fed
in the yellow cells on the inputs tab mainly. So, in this tab revenues,
expenses, financing flows and free cash flows are calculated.

 

On the Outputs tab everything is aggregated into a cash flow
statement, together with a free cash flow on a project basis as well as on an
equity basis. The same is done on a yearly basis on the next Output tab.

 

The most important investment metrics are presented on the
ratios tab where you will find all the relevant KPIs summarized.

 

Additionally on the charts tab, a series of charts are
presented: sources and uses, construction costs, revenues, expenses, net operating
income, debt service, debt balance, debt service coverage ratio, debt yield,
internal rate of returns, net present values, cash on cash and cap rate
evolution.

 

Finally, the checks tab where the most critical checks are
aggregated. Whenever you see an error message in any page, you should consult
this page to see where the error is coming from.

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