I was using the debt structure of this financial spreadsheet to work on the assisted living facility model (currently in the works still) and an error came up. Here is more about the fixed version...
It has been a busy week working on the latest assisted living facility model, and while I was in there, I went and used the debt logic from the mixed use real estate spreadsheet. What I found was a small error where the amount flowing to the refi structure was reduced by the ending balance of the initial loan.
This caused an issue because the debt amortization was now using a value that was too low when calculating the debt service. Also, on the refi month, it was essentially double counting the initial loan repayment.
The fix was actually really simple. I just removed the reference to the ending balance when calculating the total refi proceeds (which is done based on an exit cap and LTV % per the month the Refi is defined to happen). Now, the total proceeds is used as the new balance for the Refi loan as it should be and then in the cash flow summary the net effect of debt service / repayment / proceeds flows as it should.
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If you have already purchased the mixed use real estate model and want the updated version, just email me and I'll get you squared away (jason@smarthelping.com)
