image_2022-08-20_102336249 | eFinancialModels

Video Overview:

This real estate model is a great tool for the following purposes:
– Purchasing a property with up to 10 units and economics driven off inputs for each unit
– Total hold time of up to 10 years (dynamically choose the exit month)
– Dynamic construction period (define start/end month and total cost, the model evenly distributes this expense per month)
– Financing via traditional loan and/or advanced financing through a joint venture
– Rent driven by annual rent per square foot (Rent PSF)
– Opportunity to increase rent one time per unit and then have a stabilized long-term rent growth rate
– Operating assumptions driven on a per unit basis except for property taxes
– Cash flow analysis per startup/closing costs, operating income, exit proceeds
– Can be a joint venture or single operator (for joint venture there is a connected cash flow waterfall with 3 IRR Hurdles so you can do a soft/hard pref. and strategic distribution

The template lets nearly all the inputs be driven based on the month of occurrence to make it user friendly and intuitive. All the primary assumptions are on the monthly model tab for easier visibility when adjusting inputs. Final output reports included monthly and annual operating income, cash flow, IRR, equity requirements, DCF Analysis, and visuals for key financial metrics.

The model will show the expected exit value based on an exit cap rate for each year.

A ‘cash flow detail’ works as a cash flow statement summary so the user can easily see all items effects the final cash flow value in each period.