Ways to enhance underwriting in Excel
Im curious to know if you all use any extensions, excel add-ins, or AI that you’ve added into excel to make your underwriting easier and more efficient.
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Not an add-in, but enabling iterative calculations in options. Helps with underwriting development and avoids circular references.
Can you explain the benefit? I’ve worked in development, debt and pure investment and have never found the need for this. I could be missing something. But in addition it frustrates the fuck out of me when I receive a model with iterative calcs enabled because it makes the model super laggy
How are you setting up the model to account for dev fees (based on total development costs)? That's an inherent circular reference since the dev fees are included in the total development costs unless there's a neat way to do it otherwise or your firm's dev fees were flat fees?
I mean one scenario is interest carry calculations. If your loan amount is tied to LTC and total costs include interest carry, enabling iterative calcs solves for this without the need for some side formula. CRE also mentioned dev fees which is another good example.
Really interesting. I'm the exact opposite- whenever I get a model that doesn't iterative calcs turned on, I assume the sender is an excel novice.
retail expense recoveries, management fees
calcing Pilots and unabated taxes, difference in NPVs
All loan sizings, interest reserves, interest rate caps, fees, self amortizing loans
equity broker and origination fees
calcing NMTCs and LIHTCs, tax exempt bonds,
Literally my whole budget is an iterative calc.
Macabacus has some fantastic features like auto coloring cells, way more intuitive cell tracing, etc.
100% agree, I used Macabacus for almost 2y and it has been a game changer. Deal with monthly cash flow models can be though, Macabacus makes it easier (formatting, auditing, and linking functions are top)
Adderall
I use the free A.CRE excel plug-in, very helpful
Add skynet into your model that’ll enhance it real good
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