image_2022-08-23_203052061 | eFinancialModels

Video Overview:

HOW: Business template designed in Microsoft Excel. This spreadsheet is dynamic but user-friendly!

WHY: This template/tool works for up to 100 properties for a period of (up to) 10 years. Designed in one of my areas of expertise, creating 5–10-year commercial real estate deal analyzers, this model demonstrates how higher monthly booking revenue can be generated compared to average monthly leases. The tool also allows users to test various feasibilities to determine what leasing/ expenses will result in the most advantageous scenario.

WHAT: This tool enables comprehensive financial planning for monthly expenses, including maintenance costs, application fees, furnishing costs, miscellaneous slush funds, and other monthly costs.

Includes visually appealing/ insightful visualizations (charts and graphs) which show total monthly lease, monthly cash flow, as well as cumulative cash and properties.
General assumptions and inputs from users (expenses and revenues) produce a monthly and annual cash flow analysis, annual pro forma, discounted cash flow analysis, internal rate of return, return on investment, and minimum equity requirement.
To determine revenue/ expenses, users will define:
• One-time startup costs, e.g., legal and consulting fees
• Base daily rate, start month, and monthly lease for each property
• Seasonality assumptions/ various daily rate for each property
• Variable and fixed monthly costs (based on seasonality assumptions)
• Annual increase in base rate
• If a discounted daily rate for first ‘n’ months will be used (to increase positive reviews on property)
• One-time costs upon lease signing

I did put in an optional joint venture cash flow waterfall that gives the user the option to fund any equity requirements with the help of an LP. It is a standard contribution and distribution schedule without complex IRR hurdles.