Simplified Multifamily Development Model - Buil-to-Sell Scenario
Originally published: 24/05/2021 15:50
Publication number: ELQ-38584-1
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Simplified Multifamily Development Model - Buil-to-Sell Scenario

Short Multifamily Development Model for Screening And Fast Evaluation

Description
This is a simple version of my ready-to-use multifamily development financial model/pro forma. The model considers a post development immediate sale scenario.

It will take less than 10 minutes to make all the inputs.

This model is short and sweet, yet gives all the essential metrics for the initial feasibility of the project, which is built-to-sell.

This model will serve you perfectly for a quick and easy analysis of a real estate residential development opportunity with a commercial component option. The development period can be stretched up to 24 months.

MAIN ADVANTAGES OF THE MODEL

This model is for you, if you are looking for a quick analysis of a multifamily built-to-sell development property and would like to measure profitability and returns.

To make things as easy as possible for you, I have included an instructions summary tab, which provides main explanations on how to use the model.

This model is:
- Clean and transparent;
- Professional;
- Reliable;
- 100% dynamic;
- Easy to use, understand and modify;
- Prepared by an industry professional with a significant track record;
- Includes only useful information.

MAIN PURPOSE OF THE MODEL

This simple version of multifamily built-to-sell development model will help you to:

- Estimate profitability and returns of the development project;
- Check feasibility of various floor plans;
- Assess a range of construction budgets and timing assumptions;
- Assess a range of exit scenarios.


MAIN CONTENTS

The package includes 1 Unlocked Excel File with instructions summary.

The model consists of 3 interconnected tabs.

- Assumptions Tab: flexible assumptions with up to 24 months of the construction period.

- Summary Tab: Includes 3 years of monthly cash flow, flexible sales revenues, flexible sales period, development costs distributed based on the construction timing, mortgage financing calculations, and main metrics summary: IRR, Equity Multiple, Profit Margin, Net Profit.

- Construction Schedule Tab.

All residential and commercial units are sold after the development. The model takes into account a pre-sale period with 10% deposits (adjustable input). The sales revenue is calculated on the basis of the average sales price for all apartments. The sales period is flexible.

For residential-only projects, the commercial unit assumptions can be cleared out.

This Best Practice includes
1 Unlocked Excel File

Acquire business license for $40.00

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Further information

A quick analysis of a multifamily/apartment development opportunity.

Suits for a development project which includes a flexible number of apartment units and a flexible number of commercial units.
The model can be used for plain residential developments or residential projects which include commercial components.

The model will not suit for complex commercial developments and financing structures requiring re-financing of the construction loans.

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