Hey,
I am trying to build a model with a term sheet found in WSO RE Model Google Drive and I got stuck when I tried to tackle the waterfall section of the model.
The term sheet states that it will purchase the property with full equity and refinance it at the end of Y2. So is it correct to decrease the equity by the amount that is being refinanced...? If so, how I would I incorporate this into the model..?
any inputs are welcome!
Thanks in advance.
| Attachment | Size |
|---|---|
| related_.xls 1.79 MB | 1.79 MB |
Be sure to back out exit fees, origination fees, and any holdbacks that are lender forced or elective (i.e. reserves for future capex projects and/or working capital). After you net these from the new loan you'll be pretty close at estimating a distribution amount to investors that will lower outstanding equity balance.
How is your payment(D43or47) a static number and not a formula? Don't forget while unlikely it should be a min max function of LTV AND dscr, not just LTV. The debt should paydown the equity like it were a capital event. You should probably include brokerage fees and bank fee's into the total loan amount. Also not important but I like to have my monthly cash flows on a separate tab in the worksheet and my annuals in another and my waterfalls in another.
No sumifs + column grouping?
definitely sumifs
Thank you for point this out.
I fixed it with min max function also taking Maximum debt yield into consideration!
Thank you for the input!
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