Refinancing a loan can be an invaluable strategy to save money. People generally refinance loans on their commercial real estate projects to either get a lower interest rate, or more favorable loan terms. Refinancing a loan works by taking out a second loan to pay off the first loan, and is done when the second loan can provide better terms than the original.
Read MoreOperating expenses are incurred through the day to day costs required to operate and maintain a property (AKA normal business functions). These expenses do not factor in any sort of improvements and additional purchases. Most commonly, these include taxes, insurance, and maintenance fees
Read MoreRefinancing a loan can be an invaluable strategy to save money. People generally refinance loans on their commercial real estate projects to either get a lower interest rate, or more favorable loan terms. Refinancing a loan works by taking out a second loan to pay off the first loan, and is done when the second loan can provide better terms than the original.
Read MoreStabilized returns can be a useful metric for any investors that base their purchases on buying “value add” properties. Stabilized returns are a more holistic metric which will reflect the yield of a deal after a business plan has been executed.
Read MoreThe EFFECT function is an extremely useful and versatile function used in finance to determine the actual interest rate on a loan. It is used in the calculations for interest rates on funds, waterfall models, and returns on investments.
Read MoreThe millage rate, or effective property tax rate, is the rate used to determine the local property taxes. The tax expense is calculated by dividing the millage rate by 1000 (100 in TSM) and then multiplying that number with the assessed value of the property. This value will be displayed as a property tax expense in the operating expenses section of the cash flow model.
Read MoreCustom formatting is a feature in Excel that allows you to create and add custom number formats to your data. This allows you to display data with additional descriptors without hardcoding and jeopardizing the integrity of your model. With custom formatting, Excel will still be able to read numbers for function calculations but display them in the chosen format.
Read MoreManagement fees are an expense that will take care of day-to-day operations for your individual property needs. They are multifaceted and if not negotiated properly, can cost you more than previously expected.
Read MoreThe Format Painter feature of excel allows you to copy the formatting of a cell to one or multiple other cells within the spreadsheet. When referencing formatting, this can refer to the number format of the cell (general, percentage, currency, etc.), font size, color, or characteristics (Italicized, bold, etc.), or even the cell’s fill or border settings.
Read More
