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Recently updated to handle up to four properties at once and added a DCF Analysis with NPV (net present value) for both the Limited Partner and General Partner on a consolidated view and for each individual property.
Investing in multifamily real estate will always start with a financial model. This is an annual only template designed for pure acquisitions, the operation of a given acquisition for up to 10 years, potential refinance, and potential exit.
It has all the logic needed to plan out a joint venture with traditional Sponsor (GP) / Investor (LP) financing and distributions with an IRR Hurdle waterfall return schedule.
Assumptions Include:
• Capital Structure
• Purchase Price
• CapEx -
• % of CapEx Financed
• Remaining CapEx to Equity Requirement
• Pre-Purchase fees
• Financing Amount (LTV %)
• Equity Contribution by Sponsor / Investor
• Initial Loan Terms (if applicable)
• Rent Rolls
Up to 5 bedroom types, each defined by…
• Unit count (Input)
• Monthly Rent per Unit (Input)
• Current Annual Rent
• % Under market
• Market Rent per Unit (Input)
• Market Annual Rent
• Year 1 Rent Increase from Current (Input)
• New Per Unit Rent
• Per Unit Increase Pro Forma
• Annual Rent growth rate (per year)
• Ancillary Income (up to 4 slots)
• Vacancy per Year
• Loss to Lease / Credit Loss
Starting OpEx and Yearly Growth...
• 3rd party contractors
• Turn Over
• Repairs & Maintenance
• Marketing & Advertising
• Management Fee %
• Payroll
• Admin / other
• Utilities (up to 4 slots)
• RE Taxes
• Property Insurance
• Reserve per unit Debt / Exit
Loan Financing Assumptions
• Exit Cap Rate for Refi
• LTV on Refi
• Prepay penalty if applicable
• Lender Fees
• Refi year
• Refi amortization rate
• Interest Only Period for Initial Loan
• Interest Only Period for Initial Loan
Exit Assumptions
• Final Exit cap rate (selling)
• Exit year
• Interest Only Period for Initial Loan
• Waterfall Distributions
• IRR Hurdle Rates
• Cash Distribution Splits per Hurdle
Final output report includes an annual Executive Summary showing key financial line items and investor / sponsor contributions / distributions per period. Also, there are a few switches that override the detailed income and expenses. This means if you want to do a quicker analysis, you don't have to define each of the rent rolls individually or expenses and rather just define the total rent / growth and total expenses / growth.
Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.
Source: Best Practices in Integrated Financial Model, Real Estate Excel: Multifamily Acquisition Model: 10 Years & Joint Venture Capable Excel (XLSX) Spreadsheet, Jason Varner | SmartHelping
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