The objective of this model is to provide users with an integrated, high dynamic & ready-to-use analysis template for refinancing & renovation real estate projects.

The template is constructed based on a deal of acquisition of an existing full-service apartment and then performing a renovation and selling it as an exit of the investment. In this process, the equity investor can choose to maintain the current existing debt(s) or refinance them with the new one(s) as long as the loan conditions are more attractive and more favorable to the equity holder.

The model has well-established renovation schedules, debt repayment, and debt refinancing schedules. The users could easily compare the IRR results between the scenario of maintaining the existing debt(s) or refinancing them by issuing new ones.

To achieve this, the users should only switch from 0 to 1 for the selection of “Refinancing the acquisition debt” in the part “Deal Assumptions”. When users choose 0 the model will run as the refinancing will not happen along the investment period and the current debts will be amortized as scheduled. When users choose 1, the model will run as the refinancing happen once the renovation is finished. The comparation of the results of IRR and other return ratios will be a good reference of refinancing decisions.

Following the best practice of modeling, the structure of the template is quite clear and easy to follow. It includes two sheets which are “TOC”, and “Model”.

Sheet “TOC” displays the structure of the template.

Sheet “Model” integrates the assumption of the property, assumptions of the deal, debt conditions, detailed calculation of the profit, cash flow and return analysis.

This template will absolutely be a great tool for both analysis purpose and academic use.

The model is ready-to-use, fully customizable, and dynamic. All inputs in color BLUE could be modified according to users’ real cases.

The template is user-friendly either for professional analysts or for users with little experience in financial modeling since its simple design pattern and easy-to-follow logic.

The model does not place any complicated formulas or VBA code to guarantee the user’s satisfaction. The structure and content have been created following the Best Financial Modeling Principles and considering the high level of flexibility and user-friendly in priority.

Please feel no hesitation in contacting us if you experience problems using the models provided.
In addition, if you need a customized model for your specific business, please just let us know and we would be happy to help you with this.