The Residential Development Feasibility Model appraises a multi-unit residential development end to end, so you can decide whether a site is worth pursuing before you commit capital. Enter your project inputs once – land, units, sale prices, build costs, professional fees, finance and timing – and the Budget, Cashflow and Returns sheets calculate automatically.
The model is used to answer the questions a developer and their financier actually ask. What is the total development cost, broken down by line? What profit does the scheme generate, and what is the margin on development cost – the ratio lenders anchor on? What is the equity multiple and the annualised equity IRR once the drawdown and sales timing are accounted for? And how sensitive is all of that to the two variables that really move a feasibility: the achieved sale price and the build cost?
Main features: a full development budget build; a project cash flow spread across the development period so equity and debt are drawn in the right order; a Returns sheet showing profit, margin on cost, equity multiple and IRR; and a two-way sensitivity grid across sale price and build cost. A worked example is preloaded, and the profit ties to the equity cash flow to the dollar, so the model is verifiable rather than a black box.
How to work with it: edit only the blue input cells; the yellow-filled cells are the key drivers to start with. The Budget, Cashflow and Returns tabs need no editing – they calculate. Built-in checks flag when the numbers stop tying.
Why you need it: a development decision is a large, largely irreversible bet, and a locked template hides the very assumptions you most need to stress. This model ships fully unlocked with every formula visible, a plain-English cover sheet and honest disclosure of each simplification. 445 live formulas, recalc-verified with zero formula errors. Currency-agnostic; treat $ as your currency. For analysis only, not investment advice.
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, Integrated Financial Model Excel: Residential Development Feasibility Model - Profit, Margin on Cost & Equity IRR Excel (XLSX) Spreadsheet, g59076599o70
|
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. |