This template evaluates the financial feasibility of a residential build-and-sell
development – a project where you acquire land, build residential units and sell
them. It answers the single question that decides whether a project is worth
pursuing: does it pencil out? From one set of assumptions it produces a clear
go / no-go backed by numbers, so you can screen an opportunity before committing
capital.
MAIN FEATURES AND HIGHLIGHTS
• A single Assumptions tab holding every lever: land cost, constructed and
sellable areas, construction cost per square metre, sale price, soft costs,
contingency, selling costs, the full timeline and the financing terms. Inputs
are colour-coded so you always know exactly what to edit.
• A dynamic monthly cash flow across 48 months that spreads land, construction,
soft costs and sales revenue according to the schedule you define.
• A construction-loan module with capitalised interest and a configurable
loan-to-cost ratio, so returns are shown on both an unlevered (project) and a
levered (equity) basis.
• A Summary tab with the full verdict: total cost, profit, margin on cost and on
revenue (GDV), project IRR, equity IRR, NPV, peak equity required and equity
multiple.
• A two-way sensitivity table showing how operating profit reacts to changes in
sale price and construction cost.
• 100% unlocked, no macros, with a worked example already loaded.
HOW TO BEST WORK WITH IT
Open the Assumptions tab and replace the example values (the blue cells) with your
own – land, areas, costs, price, timeline and financing. Every result recalculates
automatically. Read the outcome on the Summary tab, then use the Sensitivity table
to test how robust the project is to swings in price and cost. You never touch the
formulas.
WHY YOU NEED THIS FINANCIAL MODEL TEMPLATE
Building a development model from scratch is slow and error-prone. This template
gives you an institutional-quality structure – IRR, NPV, leverage and sensitivity
— in minutes, with transparent, auditable logic you can adapt to any residential
project and present to a bank, partner or investor.
Note: this is an estimation tool. Results depend on the assumptions entered by the
user and do not constitute financial advice or a guarantee of returns.
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Source: Best Practices in Real Estate Excel: Residential Build-and-Sell Development Financial Feasibility Model Excel (XLSX) Spreadsheet, Cota Cero
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