Hey Guys,
As the title says - rate my CRE models. The first is for standard acquisitions while the second is for development projects (also contains a residual appraisal on the first sheet).
I've been lazy in the first and simply used the additional costs tab as I didn't have the time to think of individual costings - but aside from that I'm pretty happy with it!
Standard Acquisition Link Development Projects Link
Thanks
take it next step and add GP and LP cash flow distribution
try do add an amort. table, have a sources and uses section and sensitivity tables in your assumptions tab. maybe add metrics on cash flows tab such as yield on costs, cap rate on basis, unlevered yield, investor yield (pre-am. and post am.), annual debt yield, debt service coverage ratio, etc.
Depends on your experience. If you have 1-5 years experience, it's not great. If you are in undergrad, kudos.
One funny thing 1.1m pounds for burial compensation? I hope that is a fee that is lost in translation.
One of my first markers I "test" for models is construction interest draw, the capitalized interest reserve. You are way off. You are computing the interest like a bridge loan, but given the interest rate it appears it is a construction loan, hence, you should be calculating off of the total culmulative loan outstanding. You need to add .6 or 60% to your interest calc formual, otherwise you are assuming your are drawing down the total loan in month 1
Much appreciated, I'll take your advice and adjust accordingly!
I had to teach myself how to do cash flow modelling unfortunately. In the UK we all use ARGUS at the big brokerages (Knight Frank etc) for acquisitions and development projects so hardcore modelling skills are pretty low compared to lots of people in the States
I've found a lot of the big brokerages don't even run Argus or DCF's but instead have basic Term and Reversion templates for acquisitions/sales. Definitely makes it more difficult to get the right modelling experience to make the jump in the principal side.
Buy the book by Staiger: Foundations for Real Estate Modeling.
It goes chapter by chapter adding complexity. Super clear, and has you create an institutional dashboard.
I'm here to help, ask away if you have any more questions.
And, while brokerages do you ARGUS, I have models where I build around getting an ARGUS run to get return metrics
Wait excel is used for something other than an Argus reformatting tool?
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