BRRRR Real Estate Investment Financial Projection 3 Statement Model

Commercial Real Estate Properties, Development, Financial Model, Real Estate, Residential Properties

Budgeting, Business Valuation, Cash Flow Analysis, Dashboard, Financial Analysis, Financial Model, Financial Modeling, Financial Planning, Forecast, Forecasting, Property Appraisals, Property Valuation, Real Estate Valuation, Rental Income, Startup Financial Models, Tax Assets, Three Statement Model | Three Financial Statements

PURPOSE OF MODEL
Highly versatile and user-friendly Excel model for the preparation of a 5-year rolling 3 statement financial projection with a monthly timeline for a startup or existing Buy, Rehab, Rent, Refinance, Repeat (BRRRR) real estate investment business generating rental income and property sales revenue.

The Excel model allows the user to model up to 10 property developments with multiple units (if applicable), each at different lifecycle stages. It allows the user to model the full end-to-end lifecycle stages, including buying, rehabilitating, renting, refinancing, selling the properties, and repeating with another property development.

The model allows the user to model rental income, property sales, borrowings per property and refinanced borrowing, development costs, transaction fees, variable costs on rental income, fixed costs, taxes, dividends, and changes in equity.

KEY OUTPUTS
The key outputs include:
– Projected full financial statements presented on a monthly basis across up to 5 years and summarised on an annual basis.
– Dashboard with:
o Summarised projected Income Statement and Balance Sheet
o Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item
o List of key ratios including average revenue growth, average profit margins, average return on assets and equity, and Average Debt to Equity ratio.
o Bar charts summarising income statement and Balance Sheet projections
o Revenue and direct expenses by development in table and bar-chart format
– Discounted cash flow valuation using the forecasted cash flow outputs.

KEY INPUTS
Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include input validations and conditional formatting to help users understand what the input is for and populate correctly.
Setup Inputs:
– Name of business;
– Currency;
– First projection year and month;
– Naming for property developments, variable and fixed costs, company-wide fixed assets, and borrowings;
– Sales tax applicability for revenue, expense, and fixed asset items.
Actuals Inputs:
– Opening balance sheet (for existing businesses);
– Income Statement actuals (for trend analysis);

Projection Inputs:
– Property development, development costs, rental income, and revenue from sales of units, including purchase month, purchase amount, transactions costs, development/rehabilitation months, units per development, value appreciation per annum, occupancy, rent per month, units sold, and transaction costs per sale
– Borrowings including additional amounts, fees, interest rates, and respective refinancing inputs;
– Variable and fixed operating expenses across the lifecycle of each property development;
– Capitalisable costs, including addition amounts and useful life;
– Other fixed cost inputs on total company basis;
– Sales and corporate tax inputs, including rate and payment periods;
– Dividend inputs, including the amount or percentage of retained earnings and frequency;
– Share Capital additions;
– Discount rate inputs (for valuation calculation).

MODEL STRUCTURE
The model comprises of 9 tabs split into input (‘i_’), calculation (‘c_’), output (‘o_’), and system tabs. The tabs to be populated by the user are the input tabs (‘i_Setup’, ‘i_Actuals’, and ‘i_Assumptions’). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs, which are presented in ‘o_Fin Stats’, ‘o_Dashboard’, and ‘o_DCF’.

KEY FEATURES
Other key features of this model include the following:
– The model follows good practice financial modeling guidelines and includes instructions, line-item explanations, checks, and input validations;
– The model contains a flexible timeline that allows for a mix of Actual and Forecast periods across a 5-year period. This allows projections to be easily rolled forward;
– Timeline is split on a monthly basis and summarised on an annual basis;
– The model is not password protected;
– The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
o Property developments – 10 developments with multiple units;
o Variable costs linked to rental income – 5 categories;
o Fixed costs – 20 categories;
o Fixed Assets – 5 categories
o Borrowings – 10 facilities (1 for each property), each with a refinancing option.
– Apart from projecting rental and unit sales income and expenses, the model includes the possibility to model depreciation of capitalizable costs, borrowings, dividends, and corporate and sales tax;
– Business Name, currency, starting projection period, and volume units are fully customizable;
– Revenue, cost, and fixed asset descriptions are fully customizable;
– The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
– The model includes instructions, line-item explanations, checks, and input validations to help ensure input fields are populated accurately;
– The model includes a checks dashboard

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