Development, Financial Model, Financial Services, Investment, Real Estate, Service Businesses

10-year Financial Projections, 5-year Financial Projections, Accounting, Break-Even, Budget, Budgeting, Business Valuation, Cap Table, Cash Flow Analysis, Cash Flow Projections, Cash on Cash Yield, Cash-on-Cash Multiple, CFO, Chart, DCF Model, Debt Schedule, Debt Service Coverage, Discount Rate, Excel, Financial Analysis, Financial Feasibility, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Statements, Financing, Forecast, Forecasting, Income Statement, Investment Multiple, Investor Cash Flows, IRR (Internal Rate of Return), KPIs (Key Performance Indicators), NPV (Net Present Value), Profitability Analysis, Return on Invested Capital (ROIC), Return on Investment (ROI), Revenue Projections, Scenario Analysis, Sensitivity Analysis, Startup Financial Models, Three Statement Model | Three Financial Statements, Venture Capital

Video Overview:

This is a bottom-up dynamic financial model to create various feasibility studies for a real estate brokerage business. The model was built to scale for 100s or 1000s of agents and deals over time. The user can define how many deals are completed by the brokerage per month and the growth therein in over 10 years, how many of those deals are buy-side vs. sell-side, and more.

There are two configuration modules for deal types. This was done to give flexibility and account for the deals agents do vs. deals the firm/partners do, or it could be used to model two different types of deals over time that both have agents.

There are all sorts of strategies in this space. Your brokerage may offer agents 90% commissions if they want to scale high-quality individuals to sell, or you could drive growth from lower-quality agents but earn a higher share of the commissions. Either option can be modeled to see what is most feasible for your goals.

For each deal type, the user can define how many of the deals are sell-side vs. buy-side, what the commission on the entire deal is, how much commission the brokerage earns and what percentage of that commission is split with the agents.

Variable costs can be defined in a few ways. First, there is a section for each deal type to define the average monthly cost per agent per month. This would be to cover things like transaction software and marketing for the agents. Secondly, there is a catch-all cost that is driven off a defined percentage of revenue.

For fixed expenses of the brokerage (such as licenses / accounting / rent and other operating expenses), the user can define the start date of each expense, the monthly amount over 10 years, and the expense description. There are plenty of slots for data entry regarding these line items.

Final Output Reports:
– Monthly and Annual Financial Statements (Income Statement, Balance Sheet, Cash Flow Statement)
– Annual Executive Summary with key financial line items, cash flow, IRR, ROI, Equity Multiple
– DCF Analysis for the project, and there is an option to have investors / joint venture structures or solely owner operated
– 10 Visualizations of KPIs and financial expectations based on the defined assumptions
– Monthly and Annual Pro Forma detail where the user can see how all the assumptions come together and flow to EBITDA / cash flow