Need feedback on my model(Acquisition)

Question

Hi, everyone.

I drafted an acquisition model to practice with based on a term sheet I found from this forums Model DB(Google Drive). 
I would love any kind of feedback from any of you monkeys have time to review this model or if some of you who drafted the same model using the term sheet, I would love to exchange our models as well!

Much Appreciated!!

*edited I found out that I applied inflation rate wrong! a new model version is uploaded also it seems like WSO doesn't let me upload excel with macros. :(

Post hoc ergo propter hoc · Accepted Answer

I'm indifferent to an extent with this, but since we're talking...I'll write a novel about 3 things:

1.)  Why risk it?  I know everyone abides by the blue font = inputs cardinal rule, but it took me 2 seconds to look at this model and realize it was from ACRE based on the formatting alone.  Check out the website, download the model, and you'll see what I mean..  If I was able to do that this quickly, chances are another person will too.  Is it worth not getting a potentially great job because you weren't willing to at least change the formatting?

C.R.E. Shervin · Answer

First, I'm glad WSO does not let you upload a file with macros. Second, you have like 1-2 macros.  I'm not saying 1-2 macros is a bad thing, most of my models don't have any.

You have everything laid out in a confusing way, at least for me.

Did you really need to have two entire sets of cash flows, 1 levered and 1 unlevered? Seems like a waste of effort and space in your layout.

Make sure all your inputs are blue font, ALL.

nymetrorealesate · Answer

Couple of things here: 
1) The test says to put capital reserves above NOI, so not as capex, but as a regular expense, just switch it up there. So you're NOI in  this case will equal your CF before debt service. 
2) When you're capping  your NOI for the resale, you normally cap next years NOI (year 11), so it would be year 11 NOI/5.50%, not year 10. Which is normally why you see 11-year cash flow runs for 10 year holds. 
3) The Sales Fee should be negative number, these are selling costs incurred by Pru in this case to pay a brokerage firm to market the asset for sale.

C.R.E. Shervin · Answer

gonna have to disagree with you a little, but I get your overall point.

OP, at one time or another all of us have started out using and replicating someone else's models.  There are certain parts to an excel 3 statement model which are just going to be the same e.g. cash flows, expenses, amort tables, formulas, and formatting(everyone and their mother uses dark blue for fill).  I find that it is in your tweaking your model to make it dynamic that you really get the differences.  Now not sure you are there yet, but I don't think this will ding you with the company.

Attachment	Size
Term Sheet 780.17 KB	780.17 KB
prudential_model_test_ver0.3.xls 90 KB	90 KB

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