Working a lot with development draw schedules, I have always been looking for a catch all solution as to how one could easily model all the unique ways cash actually flows over time during the process. The norm for many is to model cash flows using a straight line method with even payments over time, […]
When lenders provide debt for a development project, they lend based on a Loan-to-Cost ratio (LTC), which is simply the percent of the total budget the lender will agree to lend to the borrower. So, if a project costs $10MM, and a lender loans $6MM, the lender is lending at a 60% LTC. However, the […]
I’m excited to share the Pro Forma for Multifamily Renovation model with all of you. This multifamily renovation model is made to analyze value add apartment acquisition opportunities and has a lot of functionality that is meant to provide you an ability to get into the details and go unit by unit for up to […]
Welcome to this episode of the Contract to Close series! This episode features Josh Roling, a real estate attorney and an expert in all things commercial real estate acquisitions. Josh is a close friend and colleague of mine with whom I’ve done 48 deals! In this episode, I speak to Josh about title insurance. It’s […]
When attempting to maximize the value of your money invested in real estate, the timing of your exit is key to maximize your return. Exit too early, and you might leave money on the table. Exit too late, and you might have better used that capital on other opportunities. In this quick post, I discuss […]
We have begun to compile a calendar of events for some of the more well known trade organizations in the industry in order to give our readers a one stop place to find out about events that are happening throughout the US and internationally. Obviously, this calendar will not be a complete list of all event offerings […]
What is an Earnest Money Deposit The earnest money deposit, also known as the good faith deposit or good faith money, is a sum of money that gets deposited by the buyer of a property into an escrow account usually a few days after signing the PSA, or purchase and sale agreement. The money, usually […]
For one reason or another, there is a perfectly functioning and pretty valuable formula that can be utilized in Excel that Microsoft has chosen to exclude from Excel’s list of functions: the DateDif function. This function is a valuable tool that can instantly calculate the number of days, months, or years between two dates. While in […]
I’ve decided to do a major overhaul of my last acquisitions model for office, industrial, and retail properties. There were a lot of things I wanted to change as well as add to the model and finally had a weekend to do it. This new and improved model includes both monthly and annual cash flows, […]
This is an Excel model I originally built from scratch back in 2015 for quickly assessing multifamily redevelopment opportunities. It was designed to work best for scenarios where individual units will be rehabbed over the hold at varying times. It’s a simple way to quickly analyze the viability of this type of multifamily investment. Since […]
In this post, I’m going to go over Index Match Match, which is a very useful Excel formula that is used in both the Hotel Valuation Model and the Hotel Acquisition Model – The Basic Model. This formula allows you to hone in on a specific target cell and return its value when two criteria […]
Below is an overview of how LIHTC (low income housing tax credits) are calculated and applied to affordable housing projects. At the bottom of the post you will find downloadable excel files that correspond with the videos. LIHTC – An Overview LIHTC s are federal tax incentives given to the states who then award developers […]
This is a dynamic amortization schedule for debt that gives the user the capability to model a loan with an interest only period up front and an amortizing floating rate debt repayment period once the interest only period is over. This module also allows the user to model other more straightforward scenarios such as an […]
This is a 3 part mini-series on using data tables in Excel to perform real estate sensitivity analysis. In this series, I’ll walk you through how to build both one-variable and two-variable data tables in parts 1 and 2. And in Part 3, I’ll walk you through how to no longer limit your two-variable sensitivity […]
In the following video, I record my screen and narrative my steps as I build a basic construction draw schedule. I’ve also included the template and completed worksheets from this Watch Me Build exercise. Are you an Accelerator member? See the ‘Modeling Development Cash Flow course in the core curriculum. Additionally, if you’re an Accelerator […]