Please Check My Waterfall Template
Hey guys,
I was wondering if anybody could take a look at my waterfall template that is based off of the youtube videos from A.CRE. I came from a large company and now work at a very small one, so I no longer have the joys of having my coworkers peer review my work!
I was wondering anybody here could take a quick look at my waterfall google sheet template . I have not fully automated it yet as I want to ensure the math is correct.
I have a tab for monthly and quarterly. Right now, I am hardcoding in the final amount of cash available for distribution in cell AL20 for month 36. If you are going to adjust the disposition month, then make sure in the return summary you adjust the column it is summing from.
Thanks for the help, and if this is accurate, please feel free to use and share.
Thanks,
Based on the highest ranked content on WSO, it's great that you're seeking peer review for your waterfall template. It's a smart move, especially when transitioning from a large company to a smaller one where resources may be more limited. Here are a few pointers to consider when reviewing your waterfall model:
Accuracy of Calculations: Ensure that the formulas for calculating distributions are correct. This includes the preferred return, return of capital, and the splits between the sponsor and investors at various hurdle rates.
Automation: While it's important to verify the math first, once you're confident in the calculations, automating the process will save time and reduce the risk of manual errors. Excel functions or Google Sheets equivalents like IF, VLOOKUP, or INDEX MATCH can be very helpful here.
Flexibility: Your model should be able to handle changes in assumptions without needing significant rework. This includes varying investment periods, different cash flow scenarios, and changes in hurdle rates.
Error Checks: Include error checks to ensure that inputs are within expected ranges and that the outputs make sense (e.g., total distributions do not exceed total available cash).
Documentation: Make sure to document your assumptions, sources of inputs, and any instructions needed to use the model correctly. This is crucial for anyone who might review or use your model in the future.
Sensitivity Analysis: Consider adding a sensitivity analysis to show how changes in key assumptions impact the returns.
If you're looking for a detailed review, you might want to consider posting on the WSO forum or using the WSO Resume Review service, where professionals can give you more tailored feedback. Remember, a well-structured and accurate waterfall model is a powerful tool in real estate finance, so it's worth getting it right. Good luck!
Sources: Waterfall template attached, Best way to learn Real Estate Waterfalls?, Waterfall Model Help, Waterfall for long term hold
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