Self-Storage Operating and Investment Ramping Model (1-6 Deals)
This is probably the best reason I have seen to build a financial model. It is for anyone that wants to startup and be involved in the self storage business and potentially invest in up to 6 deals over a period of 16 years. The model shows each deal individually as well as their aggregate effect. The assumptions are clean and easy to understand for each of up to 6 deals. Financing assumptions for the joint ventures have simple percentage inputs and IRR hurdle waterfalls.
The user can see their financial expectations as an LP (Limited Partner) or a GP (General Partner) participant or if it is just you as the sole equity investor that is fine and the contribution percentages can be adjusted to account for just a single-sided deal.
The model output reports shows monthly and annual pro forma summaries for each deal and in aggregate. Additionally, each view as a DCF Analysis, IRR, Equity multiple results.
One of the main uses of this template is to configure the assumptions so that you can see the minimum equity required in order to start the first deal, exit it and start the second, and so on all the way up to six. This is nice because the user can plan out a one time investment and configure assumptions to see how that could grow over 16 years without contributing another penny if so desired.
The dashboard will show a view for each deal / fund on the following metrics:
Initial Equity Contributions (%)
Total Cash Returned
Discount Rate for NPV
NPV (per monthly cash flows)
IRR (per monthly cash flows)