really love the functionality of the model. I have a couple of questions though. How is the Pre-Reno rent per unit calculated if there is existing vacancy? Do you just look at average income in place for leased units? Also how does the model reflect those vacant units in the renovation roll up and costs associated with them. I would assume that all the vacancies are immediate renovation and would require capital to fund them immediately. Is there a connection between immediate vacancy renos and the capital costs for them or are these going to have to be detailed inputs in the hard cost line?
Keep in mind, the Lender Reserve amount is simply a placeholder value (i.e. blue font cell). So, in practice your lender would provide the amount to use for lender reserve. With that said, the placeholder value I use in the template version of this model is a sum of the first year's Capital Reserve, insurance, and property taxes.
@@adventuresincre Thanks for your reply. But how do I know how much interest I’m paying on the bridge loan ? I was under the impression that the lender reserve amount should equal the total interest you pay on the bridge loan.
@@78g476 Every situation is different. If the cash flow from the property is insufficient to cover operating costs and interest, most lenders will require you to reserve for those shortfalls. This particular model does not automatically calculate shortfalls, but you can see how much shortfall would exist by adding up any negative cash flow in the 'Cash Flow after Financing' line. If there is a shortfall, most lenders will require you to reserve for it (i.e. add up the negative cash flows in the CFAF line and enter it in the Lender Reserve line). Note that most lenders will also require other reserves (e.g. insurance, property tax, CapEx) and so be sure to connect with them prior to making any assumptions about reserves.
@@78g476 See the Debt Service section of the Operating Cash Flow module. In the template file, Debt Service is shown in lines 156:159. The bridge would be row 156 (and possibly 157).
Hey Mark - The Std.Dev in those cells determines the slope of the S-Curve for forecasting development cash flows. Dividing the Std.Dev by six steepens the curve to something more appropriate. You can learn more about the s-curve math/concept here: www.adventuresincre.com/development-budget-distributing-cash-flows-using-the-s-curve-method/
make an update please. One that flows with the new model! LOVE YOU GUYS!! THANKS FOR ALL YOU DO!!
such a beautiful , and thoughtful presentation, never seen before..
Great job. I can't wait for - TUTORIAL #3 - USING THE MODEL TO ASSESS A STABILIZED ACQUISITION
Great presentation and would be an amazing deal
Thanks Ryan - and agree it would be a great deal!
not able to download the case study note. thanks a lot.
really love the functionality of the model. I have a couple of questions though. How is the Pre-Reno rent per unit calculated if there is existing vacancy? Do you just look at average income in place for leased units? Also how does the model reflect those vacant units in the renovation roll up and costs associated with them. I would assume that all the vacancies are immediate renovation and would require capital to fund them immediately. Is there a connection between immediate vacancy renos and the capital costs for them or are these going to have to be detailed inputs in the hard cost line?
Do you know if this works for MacBooks yet?
Is the lender reserve amount equal to the interest or debt service you pay on the bridge loan during it's term?
Keep in mind, the Lender Reserve amount is simply a placeholder value (i.e. blue font cell). So, in practice your lender would provide the amount to use for lender reserve. With that said, the placeholder value I use in the template version of this model is a sum of the first year's Capital Reserve, insurance, and property taxes.
@@adventuresincre Thanks for your reply. But how do I know how much interest I’m paying on the bridge loan ? I was under the impression that the lender reserve amount should equal the total interest you pay on the bridge loan.
@@78g476 Every situation is different. If the cash flow from the property is insufficient to cover operating costs and interest, most lenders will require you to reserve for those shortfalls.
This particular model does not automatically calculate shortfalls, but you can see how much shortfall would exist by adding up any negative cash flow in the 'Cash Flow after Financing' line.
If there is a shortfall, most lenders will require you to reserve for it (i.e. add up the negative cash flows in the CFAF line and enter it in the Lender Reserve line). Note that most lenders will also require other reserves (e.g. insurance, property tax, CapEx) and so be sure to connect with them prior to making any assumptions about reserves.
@@adventuresincre So which line shows how much interest is being paid on the bridge in V0.92 ?
@@78g476 See the Debt Service section of the Operating Cash Flow module. In the template file, Debt Service is shown in lines 156:159. The bridge would be row 156 (and possibly 157).
Please see cell EV24:EV28, why is Standard Deviation divided by 6?
Hey Mark - The Std.Dev in those cells determines the slope of the S-Curve for forecasting development cash flows. Dividing the Std.Dev by six steepens the curve to something more appropriate. You can learn more about the s-curve math/concept here: www.adventuresincre.com/development-budget-distributing-cash-flows-using-the-s-curve-method/