Financial Model, Marketplaces, Real Estate, Service Businesses

10-year Financial Projections, Break-Even, Budgeting, Business Valuation, Cash Flow Projections, Cash-on-Cash Multiple, Cost Projections, Demand, Excel, Financial Analysis, Financial Feasibility, Financial Modeling, Financial Planning, Financial Projections, Financial Ratios, Financial Reporting, Financial Statements, Financing, Forecasting, Investment Multiple, Investor Cash Flows, Investors, KPIs (Key Performance Indicators), Management, Payback Period, Real Estate Valuation, Revenue Projections, Startup Financial Models, Supply, Terminal Value, Three Statement Model | Three Financial Statements, Variance Analysis

A Real Estate Brokerage Firm is a business entity acting as a middleman that connects buyers and sellers to facilitate a real estate (sale or rent) transaction. Real Estate Brokerage firms earn their revenue from commissions.

This financial model, suitable for either a startup or an operating company, provides advanced financial planning & analysis for a Real Estate Brokerage Firm specializing in Residential Properties. It includes assumptions and calculations of Homes Portfolio (existing and new properties), Average Home Sales and Rentals, Commission Schedule, Reals Estate Agents Hiring Schedule, Payroll, Cost of Services, OpEx, CapEx, Financing and Valuation, and Exit Assumptions in the case of a potential sale of the business.

Outputs of the template include monthly and forecasted Financial Statements (3 Statement Model), Direct Cash Flow, Budget vs Actual Variance Analysis, DCF & Payback, Breakeven Analysis, and Investors’ Returns Waterfall.

A variety of KPIs and Financial Ratios analyzes business performance and the company’s results are presented through sophisticated charts & graphs and are summarized on a professional Executive Dashboard.

The model is dynamic and allows users to select the desired forecasted Years (1 to 10). Output Reports & Charts are dynamically updated based on the selected forecast period

The structure of the template follows Financial Modeling Best Practices principles and is fully customizable.

Model Structure

Inputs:
• General Business Info & Reporting Metrics
• Homes Portfolio including existing properties and methods of adding new ones through Marketing (Paid & Organic) and Real Estate Agents
• Home Sale and Rental Prices and Demand Assumptions
• Commissions and Transactions Assumptions (Transactions executed by the firm and by agents, commission split, etc.)
• Real Estate Agents, Direct and Indirect Staff Assumptions (new Hires, salaries, etc.)
• OpEx and CapEx Assumptions
• Financing & Capital Structure – Uses & Sources of Cash analysis (Financing through Equity & Debt)
• Exit Year Scenario & Valuation Multiples

Model Outputs

• Monthly Operating Budget – Actual & Variance Analysis
• Monthly Income statement per Year
• Annual Financial Statements (Dynamic 10-Year forecast using a 3 Statement Financial Model)
• Annual Direct Cash Flow
• Breakeven Analysis
• Summary of various KPIs and Financial Ratios (Revenue & Cost Metrics, ROE, ROIC, Profit Margins, etc.)
• Business Performance Dashboard
• Business Valuation (incl. DCF, Terminal value, Unlevered & Levered Cash Flow) & Payback period analysis
• Investor Returns (4-tier IRR hurdle waterfall model to distribute proceeds between investors)
• Professional Executive Summary (can be used for investment decisions)

The model is available in 2 versions (Standard & Premium)

Standard Version includes:

• Set up Assumptions (Home Portfolio, Revenue & Cost of Service, Payroll, OpEx, CapEX, Financing)
• Monthly Operating Budget – Actual
• Monthly Income Statement per Year
• Annual Financial Statements (Dynamic up to 10-Year forecast using a 3 Statement Financial Model)
• Summary of various KPIs and Financial Ratios
• Business Performance Dashboard

The Premium Version includes all the features of the Standard Version plus:

• Variance Analysis (Budget vs Actual)
• Annual Direct Cash Flow
• Breakeven Analysis
• Business Valuation & Payback Period Analysis
• Investor Returns (4-tier IRR hurdle waterfall)
• Executive Summary

Detailed instructions on the use of the model are included in the Excel files.

Help & Support

Committed to high quality and customer satisfaction, all our templates follow best practice financial modeling principles and are thoughtfully and carefully designed, keeping the user’s needs and comfort in mind.

No matter if you have no experience or you are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!

If you however experience any difficulty while using this template and you are not able to find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.

If you need a template customized for your business requirements, please e-mail us and provide a brief explanation of your specific needs.