Having trouble making this 'Sources & Uses' balance with the reality (even with 3 years of CRE experience)
Ok so my sources and uses balances. Per the S&U, the total equity invested is $2,091,011. For the S&U, I basically calculated it all inside the chart with Uses being the gross costs, and Sources being Total Loan Prinicipal + Remainder needed to balance S&U (Equity).
However when I look at my cash flow, the sum of all negative cash flows is 1,886,950 (i.e. this figure should really be the total equity required, not the $2.09M figure). Even if I include financing, the S&U still doesn't balance.
Now I believe I know the issue. I have renovations running throughout the first 3 years. The property also generates positive NOI over those 3 years. The property NOI is **not** being incorporated into the S&U. However!!! The property NOI helps pay for these renovations! So what the hell, that is why my S&U Equity is higher than my sumif<0 equity calculation in the cash flow. How do I fix this in my S&U?
**********SOURCES & USES (at bottom of 1st screenshot)**********
********* CASH FLOW ************
If you’re using cash flow from operations to pay for expected uses that are in your S&U, then you obviously need to add the cash flow as a source.
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