Real Estate Model: 100% Leverage Scenario Feasibility   Excel template (XLSX)
$45.00

Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Log in to unlock full preview.
Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Real Estate Model: 100% Leverage Scenario Feasibility (Excel template (XLSX)) Preview Image
Arrow   Click main image to view in full screen.

Real Estate Model: 100% Leverage Scenario Feasibility (Excel XLSX)

Excel (XLSX)

$45.00
This template was crafted by a Financial Modeler, Accountant, & Consultant with over 10+ years of experience in developing Real Estate Underwriting tools. He has served 750+ clients, from small family offices to billion-dollar corporations.
Add to Cart
  


Immediate download
Fully editable Excel
Free lifetime updates

VIDEO DEMO

BENEFITS OF THIS EXCEL DOCUMENT

  1. Advanced real estate strategy underwriting template.
  2. Learn and study the financial feasibility of 100% leverage acquisitions.

REAL ESTATE EXCEL DESCRIPTION

This product (Real Estate Model: 100% Leverage Scenario Feasibility) is an Excel template (XLSX), which you can download immediately upon purchase.

This is one of my favorite types of models because it is teaching and demonstrating a complex strategy and at the same time providing a way to quantify and run financial feasibility scenarios on that strategy. Seasoned real estate investing pros and beginners can both gain lots of value with this template.

First, we'll talk about the general strategy and then get into the model assumptions and how to use it.

General Strategy:

This was made for specific situations where a buyer is looking at purchasing multiple properties from someone with the use of seller financing. You negotiate pricing and terms with the seller and one key agreement is that they give one or more of the properties to you free and clear with a title. The total price is still what the seller wants and your mortgage payments on that will be reflected, but the caveat is they give you some of the properties over, so you own them outright.

You are still putting a down payment in this situation, however now that you own one or more of the properties free and clear, you can go get that property appraised and refinance it with a traditional mortgage through the bank. By getting those refinance proceeds to equal roughly what your down payment was on the initial purchase, 100% leverage has effectively been achieved. You could also do it for simply higher leverage situations (90%+ or even have a situation where you make some money on the acquisition).

The risk here is in the total debt service you have to pay every month. It is important to make sure the expected net operating income from all the properties is enough to cover the seller financing and traditional mortgages. Then, at some point you can flip the properties for a big gain on sale without ever having to invest any actual cash or very little.

Template Features:

Leverage can be used in this aggressive way to boost IRR / general returns, but it is quite risky. To help get a better understanding of those risks, this financial model was made. The user can enter up to 15 properties for a portfolio purchase and designate which ones are seller-financed vs being transferred outright as well as the initial purchase price for the entire portfolio and down payment.

Then, the user can define the appraisal value for properties being transferred outright and the LTV rate for the refinance. This will show the user how much the net position is on acquisition.

To understand the future cash flows, there is a monthly and annual pro forma that populates for up to 120 months. This is driven off of the expected rental income per property less the expected operating costs per property, less debt service. You can assign an overall expected vacancy, exit cap rate, and exit month as well as all the terms for the loans.

I built in a data table to show resulting net present values (NPV) based on sensitizing the occupancy rate and down payment percentage. This will tell you at what point the cash flows are negative and not feasible.

Finally, I've included a visualizations tab to make it easier to understand the model scenario.

Instructional video is included in the file.

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 Real Estate Excel: Real Estate Model: 100% Leverage Scenario Feasibility Excel (XLSX) Spreadsheet, Jason Varner | SmartHelping


$45.00
This template was crafted by a Financial Modeler, Accountant, & Consultant with over 10+ years of experience in developing Real Estate Underwriting tools. He has served 750+ clients, from small family offices to billion-dollar corporations.
Add to Cart
  

ABOUT THE AUTHOR

Author image
Additional documents from author: 189
Terms of usage (for all documents from this author)

I graduated in 2011 with a Bachelor's degree in Accounting and began my career as a financial analyst at a small chain of auto repair shops. After gaining valuable experience, I launched my own practice specializing in real estate underwriting, later expanding into general business modeling.

I honed my spreadsheet modeling expertise by completing over 400 projects on Upwork with a 100% success ... [read more]

Ask the Author a Question

You must be logged in to contact the author.

Click here to log in Click here register

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.
Bundle and save! You can save up to % with bundles!

View bundle(s)




Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab




Read Customer Testimonials

 
"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

– Chris McCann, Founder at Resilient.World
 
"One of the great discoveries that I have made for my business is the Flevy library of training materials.

As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy "

– Ed Kemmerling, Senior Lean Transformation Expert at PMG
 
"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
 
"FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The "

– Roderick Cameron, Founding Partner at SGFE Ltd
 
"I am extremely grateful for the proactiveness and eagerness to help and I would gladly recommend the Flevy team if you are looking for data and toolkits to help you work through business solutions."

– Trevor Booth, Partner, Fast Forward Consulting
 
"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it gives me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

– Royston Knowles, Executive with 50+ Years of Board Level Experience
 
"As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for "

– Jim Schoen, Principal at FRC Group
 
"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

– M. E., Chief Commercial Officer, International Logistics Service Provider




Save with Bundles

This document is available as part of the following discounted bundle(s):

Save %!
Real Estate Underwriting Templates / Deal Analyzers

This bundle contains 25 total documents. See all the documents to the right.

$299.00


Add Bundle & Save


Your Recently Viewed Documents


Customers Also Like These Documents

Related Management Topics


Real Estate Integrated Financial Model

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.