Commercial Real Estate Properties, Construction, Contractor, Development, Financial Model, Investment, Real Estate

5-year Financial Projections, Accounting, Accounts Payable, Accounts Receivable, Amortization, Bad Debt, Bookkeeping, Break-Even, Budget, Budgeting, Business Valuation, Cap Rate (Capitalization Rate), Cash Flow Analysis, Cash Flow Projections, Cash on Cash Yield, Cash-on-Cash Multiple, Chart of Accounts, Consolidation, Controlling, Cost Calculation, Cost Projections, DCF Model, Debt Amortization, Debt Schedule, Debt Security, Debt Service Coverage, Developers, Discount Rate, Excel, Financial Analysis, Financial Debt, Financial Due Diligence, Financial Feasibility, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Ratios, Financial Reporting, Financial Statements, Financing, Forecast, Forecasting, General Ledger, Gross Yield, Income Statement, Investment Multiple, Investor Cash Flows, IRR (Internal Rate of Return), Levered Yield, Loans, Mortgage, Net Yield, NPV (Net Present Value), Payback Period, Pricing, Private Equity, Private Equity Waterfall Distribution Models, Pro-Forma, Profitability Analysis, Property Appraisals, Property Valuation, Real Estate Valuation, Rental Income, Replacement Cost, Revenue Projections, Scenario Analysis, Sensitivity Analysis, Startup Financial Models, Terminal Value, Tracking, Uses and Sources of Funds, Valuation

Video Overview:

This model can be used to budget and analyze the feasibility and investment return of building as a real estate merchant builder. This model is a necessary tool if you plan to build property for profit. Utilizing this model will provide confidence that you are undertaking a profitable endeavor and can meet all liabilities before the sale date. The model is dynamic to handle various cost and capital assumptions and straight-line and s-curve expense distribution methods to be precise in the revenue and expense timing.

The model is organized into the following section:

Executive Summary: This output tab provides the high-level reporting output for the analysis, including sources and uses, returns, consolidated cash flow, and capital account balances. The summary provides a valuable and insightful report for reviewing the project returns, revenue, expenses, and feasibility.

Assumptions & Model: This input/output tab drives the entire model. The inputs are neatly organized and quick to input, allowing you to spend more time analyzing and reviewing than completing data entry. The yellow-filled cells with blue text are for user inputs – only type into the yellow fill with blue text cells. The blue-filled cells with blue text are user dropdowns. Please use the dropdowns to make your selection.

The model has the following assumption fields:

– Property Assumptions: This section contains general model assumptions, such as the property name/address/state/province, analysis date for version control, developed area of the property, the model currency, the model measurement, as well as the development start, duration, and end date.

– Existing Property and/or Land Purchase: This section provides space for the user to input the existing property/land purchase price, closing costs, and any other upfront expenses, including the timing. The expenses can be distributed straight-line or by utilizing the pre-built s-curve in the model.

– Renovation Budget: This section provides space for the user to input their development budget by line item, select an expense distribution method (straight-line or s-curve), and input the start and end of the month when the expense occurs for project and expense phasing.

– Property Sale: This section provides space for the user to input the anticipated sale price, closing costs, and any other expenses incurred on the sale.

– Financing Assumptions: This section provides space for the user to input their loan to value (LTV) and interest rate on their construction financing for the model.

– Cash Flow & Returns: This section consolidates the existing property and/or land purchase, renovation budget, property sale, and financing cost cash flow to calculate a net cash flow. This section calculates the IRR utilizing the XIRR function contemplating monthly cash flows and the multiple of capital.

S-Curve: This tab contains the S-curve calculation that can be used at the user’s option to distribute project hard and soft costs.

Data Validation: This tab contains the data validation used in the “assumptions” tab.

This model is an excellent tool for merchant builders. This model is neatly organized for accurate inputs and precise outputs, allowing users to spend more time analyzing and evaluating projects instead of inputting data. The model has a well-organized executive summary with easy-to-read reports pre-formatted for print or PDF.

This model template comes as both in .pdf and .xlsx file type, which can be opened using MS Excel and any PDF File Viewer.

Note: Changing the Currency Input will not update the currency symbols used throughout the workbook. The user has to change the currency manually if they don’t want “$”

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