This is a great tool for smaller acquisition that need to be quantified by units. These units will have different inputs for annual rent per square foot, start month, and a secondary increase for new annual rent per square foot and the month that happens for each. The equity stack allows for enough flexibility for traditional debt and sponsor/investor preferred equity (hard or soft). If you are just a single operator that is fine, simply zero out the investor percentages.
$45.00 USD
The flow was designed to be easy to follow and exist all on a single tab. The user inputs are as follows:
- Purchase Price
- Closing Costs
- Debt financing and all relevant loan terms
- End/exit month (defines when the model forecast stops, debt repaid, and when exit proceeds happen)
- Construction / Development Costs (and the start/end month of construction) the cash required for this will be spread evenly over the number of months of construction. These inputs are all dynamic.
- Annual Rent per Square Foot for each unit
- Rent start month of each unit
- Unit Sq. Ft.
- Increase rent to 'x' annual rent per square foot
- Start month of this increase
- Annual rent increase after this new amount has been implemented
- Expense slots (user defines annual expense amount per unit) (these are arbitrary except the first one, which is property taxes and defined as an annual amount
- Annual expense increase rate
- Exit Cap Rate
- Selling Fees
All of the above inputs are built to create a monthly summary of cash flow, net operating income, and equity required. The equity required has its own row that takes any negative cash flows and assumes that is the cash needed from investors/sponsors.
There is a separate monthly cash flow waterfall to handle a joint venture scenario where there are IRR hurdles and contribution percentage amounts if this is a joint venture. If it is not, you can simply 0 out one of the sides and all cash flow will just go to the remaining pool.
The monthly summary is rolled into an annual summary and visualizations were built to show the resulting key financial metrics of the entire deal from start to finish. This includes monthly and annual net operating income, exit valuation, cash flow detail of all main cash flow items, and cash contributions/distributions to sponsor/investor.
There is a DCF Analysis built in as well as final IRR performance that is based on monthly cash flows.
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