Transform your real estate vision into profitable reality with this comprehensive financial model template designed for land acquisition, development, and sales. Whether you're an experienced developer or stepping into the industry, this powerful tool simplifies complex financial planning, helping you evaluate project feasibility, forecast revenues, and maximize return on investment. With intuitive features and customizable options, our template empowers you to make informed decisions, secure financing, and confidently navigate every stage of your development projects.
After purchase, the template will be immediately available to download. This is also included in the real estate models bundle and The Super Smart Bundle.
I built this model for a developer of lots of land (buy, develop into new housing, and sell). One of the most interesting features of this template is that the costs, timing, and sales all happen based on defining the metrics of each lot individually. There is a default of up to 500 lots that can be configured, but it could be expanded to more if required. The actual client I built this for only needed about 20-40 slots so that is the current dummy data you will find in the download.
Everything flows into a monthly and annual cash flow pro forma and an IRR hurdle waterfall if there is a need to analyze joint venture possibilities.
The 'bank balance' row in the monthly detail is a great way to see how various changes in timing and assumptions affect the amount of investment required.
Lot Assumptions:
- Dynamic start month and sale month inputs for each lot.
- Define sale amount per lot.
- For costs, define the land cost, total build / construction costs, and the % of those total build costs that are paid 'n' months from the start month of the lot. This gives better visibility into cash flow.
- The total fees and interest are automatically spread out over all the lots, so you get a profit per lot figure.
- Option for builder share of profits per lot (if applicable).
General Assumptions:
- Model up to 60 months' worth of activity.
- Option for an interest-only loan with manually defined draw amounts per month, dynamic interest calculation, and manual repayment. If there is still a balance at the end of the defined loan term, that will automatically be paid back and affect cash accordingly.
- Selling cost (defined as a % of the sales price).
- Fee options to account for origination fee, valuation fee, draw fees, underwriting / processing fees and the month number that each cost affects cash flow.
- If this is a joint venture, there are GP fees for construction, disposition, and an ongoing asset management fee.
- The waterfall tab has monthly and annual conventions with IRR hurdle configurations (up to 3).
- High-level project summary of total costs, total proceeds, and net profit of the project.
- IRR and Equity Multiple levered and unlevered.
- For the project cash flows, there is also an IRR / equity multiple.
- The user manually defines the amount of the bank balance that is distributed to investors (if this is a joint venture). That logic takes the balance of the previous month and distributes it in the month the percentage is entered.
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