New Housing Development Real Estate Model - Lot-based

Description
I developed a comprehensive financial model template for real estate projects involving land acquisition, development, and sales.


This tool simplifies financial planning, helping to evaluate project feasibility, forecast revenues, and maximize return on investment.


Key Features:

• Ability to define costs, timing, and sales metrics for each lot individually, supporting up to 500 lots (expandable if needed).
• Monthly and annual cash flow pro forma and an IRR hurdle waterfall for joint venture analysis.
• A 'bank balance' row in the monthly detail to visualize how changes in timing and assumptions affect investment requirements.

Lot Assumptions:

• Dynamic start and sale month inputs for each lot.
• Define sale amount per lot.
• Specify land cost, total build/construction costs, and the percentage of build costs paid 'n' months from the start month.
• Automatic allocation of total fees and interest across all lots to calculate profit per lot.
• Option to include a builder's share of profits per lot.

General Assumptions:

• Model up to 60 months of activity.
• Option for an interest-only loan with manual draw amounts, dynamic interest calculation, and manual repayment.
• Selling costs defined as a percentage of the sales price.
• Fee options for origination, valuation, draw fees, underwriting/processing fees, and timing of cash flow impact.
• GP fees for construction, disposition, and ongoing asset management if it's a joint venture.

Waterfall Tab:

• Includes monthly and annual conventions.
• Configurable IRR hurdles (up to three).

Project Summary and Return Metrics:

• High-level overview of total costs, total proceeds, and net profit.
• Levered and unlevered IRR and equity multiples.
• IRR and equity multiples for project cash flows.
• User-defined distribution of the bank balance to investors, with logic to distribute based on the previous month's balance.

This model is also included in the real estate models bundle and the all models bundle.