|Development, Financial Model, Investment, Real Estate|
|Cash-on-Cash Multiple, DCF Model, Developers, Excel, Financing, Investors, IRR (Internal Rate of Return), Private Equity Waterfall Distribution Models, Sensitivity Analysis, Sponsors|
Includes a monthly and annual summary that auto-fills based on inputs and goes out for a period up to 30 years.
Includes a breakdown of investor units based on the aggregate investor cash required.
Includes a DCF analysis based on its own tab assumptions.
Includes a full dynamic amortization schedule for financing options that is completely dynamic and integrated into all aspects of the model.
Includes a full amortization schedule to track depreciation if needed. The depreciation model itself allows for all conventions and various useful life inputs.
Includes a dynamic reserve calculation to let you check if you have allowed enough cash to cover initial costs before revenue starts.
One of the most difficult things for developers/sponsors to do is explaining to investors what the cash flows look like in a given real estate venture. This template was built to give developers a great tool to use in order to explain what is going on to investors/partners and how various changes to a deal will effect return %’s.
The two waterfall models allow you to either enter the monthly cash flows of the project per each month and based on those cash flows, it will show the splits of cash flow to each group. The higher-priced one has allowed for up to 3 groups with different hurdle rates i.e. 1 sponsor and 2 investors, with the 2 investors having different hurdle rates.
The lower-priced waterfall model allows for you to build cash flows from a top down style real estate model or you could just put in the cash flows for each month manually. Based on those cash flows, it has a waterfall split between 1 sponsor and 1 investor.