Real Estate Financial Modeling - Should I Model Monthly or Annual Growth?
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- čas přidán 20. 08. 2024
- Real Estate Financial Modeling - Should I Model Monthly or Annual Growth? // If you have a real estate financial modeling interview exam coming up, and you’re trying to get prepared for the big day, commercial real estate financial modeling can have some ambiguous “grey areas” when it comes to what to do in certain situations. One of those is what to do when you’re given an annual growth rate for revenue or expenses - do you build your real estate financial model showing growth once per year, or annual growth rates applied on a monthly basis? That’s what we’re going to cover in today’s video.
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oh man... Making me re learn how exponents work. Had to google it. Raising to the power of zero = 1. So that is why the first year works. Thanks for making your models available for download.
I greatly appreciate the downloadable spreadsheet. Thanks.
No problem - happy to help!
THAT IS REALLY BRILLIANT, JUSTIN! I AM WONDERING IF THERE IS ANOTHER WAY TO MAKE THIS FORMULA HAPPEN, SUCH AS IF FORMULA OR SUMIF. THANKS
This is the simplest way I know of to do this, but I'd recommend whichever method makes the most sense to you. Great to hear you enjoyed the video!
Super helpful, I always get stuck on clarifying this "grey areas" when UW, is it conservative/ make sense to begin grouting expenses immediately and start rent growth at stabilization?
hi, thanks for the video. My question, how if the rent starts in the middle of the year, June for example. how can we automate the growth every june for the next years, assuming we keep the model starts from January
What would you do for multi family?
what happens if you have different year growth?