Real Estate Fund Modeling

What the best method for modeling a FOF hypothetical?

A) utilize the the 1, 3, and 5 yr average net return of the underlying operators 

or

B) utilize assumptions of cash flow based on prefs and estimated appreciation of the underlying assets? 

i've modeled both methods and with A (using net return) and B (using IRR) the returns are within 15% of each other however the MOIC is very different. i also modeled in a refinance/recap of some sort in year 3 under method B. I know what i'm doing in application but am not an excel guru and am struggling to ensure i model the hypotheticals accurately to investors. any thoughts or feedback?

7 Comments
 

How the fuck are you launching a fund of funds without knowing the absolute basics. Fucking dumbass I feel bad for anyone that falls for your scam.

 

its a bit judgmental when you don't know me or what resources i'm able to pull together; everyone starts somewhere. Launching means learning and building the product accurately and properly before pitching. Just because excel isn't my skillset doesn't make it a scam. unless you have something to contribute go fuck yourself. 

 

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