This Financial Model &Valuation System is focused on Developments of the Multi-Family Type, Condo, Apartments, and Houses.
The Financial model is in three separate parts for differing aspects.
The first part is a 20 year Three Statement Analysis for the Developer who wishes to develop and hold the stock for lease/rental purposes. The model only requires 20 x basic input fields and all financial statements are automated. You are able to choose the pace at which the development takes place, the amount of gearing required, funders rates, and reinvestment rates. The model is simple yet powerful in that it will automatically re-value your stock dependent on the growth factors you have chosen, The value of the stock is determined by a cap rate chosen by yourself and the exit values/revaluation amounts are dependent on this. The second Model within this Finacial Model will take you through the process of a development whereby you intend to sell the units.
Accurate measurement of returns can only be measured by making use of XIRR and XNPV formula. as these are the date-sensitive equivalents of IRR and NPV. Fundamental to this valuation and the calculation of profitably, is the timing of cash flows. Hence the reason why we make use of a QS type style whereby you input cash flows and the dates that you expect these cash flows to take place, The old GP method simply does not take into account the TVM effects.
The third part of this Model is a quick comparison model if you are faced with multiple development opportunities (this being for the sales-type development. You will simply, input cash flows and dates and the model will compare the Investments returns with XIRR and XNPV so that you may quickly assess the most viable of projects.
These models have been designed in a manner that any novice may operate and understand the numbers being generated, yet it is powerful enough to take to any funder or investor.