Trending Content - Real Estate Forum
Career Resources
WSO Free Modeling Series - Now Open Through
September 30, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
maybe something along the lines of the loan interest applied every 6 months instead of 12?
100% not sure about this. I am just an intern
If that is the case, shouldnt he multiply by 2? I dont think that is the right answer.. but I could be wrong..
Interest compounds semi-annually on the balance of the loan!
^
GIVE THIS GUY HIS $5!
Hi, could you just explain this a bit more? Because the model is dividing the 63 months into 24. If the lecturer was actually trying to say that interest compounds semi-annually, shouldn't he divide the 63 months into total of 6, not 24????
I get that 63 month is divided first by 12 because it is being annualized. If like you said, the interest is compounding semiannually, it should be multiplied by 2, not divided by 2..
For example, if the interest is compounding semiannually for 63 months, there should be compounding every 6 month for 63 months.. approximately 10 times of compounding. But dividin 63 months into 24 months means compounding very 2.625 years...
Am I on the wrong track?? I am not trying to not give away $5.. just trying to understand the model so I can go forward..
You'll need to divide by 6.
Please PM me to arrange Venmo Transfer.
Interest compounds semi-annually, not annually, on the loan balance. PM me and I'll give you my name for you to send the money
Please see my comment above, and I will venmo the first person who makes me understand it. Thank you.
interest compounds semi-annually on the balance of the loan
in for $5 bucks
On another note F34 is the sum of the time horizon... he then goes on in the formula you stepped into to redo the sum for F31:F33... why not just reference the sum in F34...
Yeah... I was like "wtf?" too
There's an article by REFM titled "How to estimate development financing costs on a back of the envelope basis (links to free tools included)" that I think covers this. Sorry don't know how to link it in the comments.
Wow.. the article u mentioned literally explains the shit I was wondering about. Thank you. Let me know your venmo id. I will send you $5.
No need friend, just pay it forward next time you see someone on this thread that has a question you can answer. I was going through the same REFM BOE last week and had the same question so it was fresh in my mind.
https://www.getrefm.com/model-for-success/how-to-estimate-development-f…
This is the link if anyone else is wondering.
Reprehenderit itaque quo enim est sequi aliquam qui. Eos quae est dolor hic. Natus possimus non rerum unde ut.
Quo dicta autem velit repellat ab sint minus. Consequatur amet doloribus quia maxime sit voluptas. Voluptatem molestiae ipsum dolor. Qui sunt voluptatibus id quaerat omnis aspernatur. Est rerum nemo aperiam voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...