The =IF() function is a function in Excel that allows one to make logical comparisons between a value and what to expect. There can only be two results in an =IF() function, true or false. It is used to check for errors within existing data in Excel spreadsheets, and does not explicitly compute new data.
Read MoreAn equity placement fee, commonly referred to as an equity origination fee, is a fee charged upfront by a broker to obtain limited partners, equity investors, or some sort of silent partner. When a real estate project is being underwritten part of the project is funded by debt (a loan from the bank) and the rest is funded by investor equity as well as general partner equity. If the GP does not readily have investors accessible they hire brokers to find limited partners. The GP must then pay a fee to the broker, similar to a finder’s fee, for finding investors to put equity into the project. Equity placement fees are typically anywhere from 0.5% - 2% of the total equity requirement.
Read MoreThe results from the Center across selection and Merge Cells look the same, but center across selection is better as it leaves the excel structure intact, allowing edits to be made easily.
Read MoreIn real estate, Capital Expenditures, or CapEx, refers to expenses incurred to create future value. These expenses are long-term investments intended to increase the profitability of a property in the long run and can include things like upgrades to the property or material improvements.
Read MoreThe checkmarks we use in our models allow our clients to see a visual representation of whether or not there are errors in the formulations within their financial models. Using the check symbol within your personal Excel sheets will allow you to accomplish the same thing. You will be able to give your audience a visual way to understand your data and facilitate the understanding of your data. Whether you use the check symbol to showcase what is correct or incorrect or what tasks have been completed or not completed, the check symbol will help your Excel sheets look more credible and professional.
Read MoreNon-revenue units are units that do not produce any sort of income. There are two main types of non-revenue units: employee units and model units. Employee units are units that the property staff or property manager occupy and the multifamily complex does not charge them in return for their services to the property. Model units are units that the multifamily complex shows to prospective tenants to entice them to sign a lease.
Read MoreUtilizing color coded formatting within excel is a great way to further enhance your financial model. Having various colors of text and shading allows for a more efficient navigation throughout your spreadsheet as it creates a more user-friendly experience.
Read MoreLoan Origination fees are the fees charged by lenders in order to be compensated upfront for processing new loan applications. These fees are used by the lender to make more money and turn a higher profit per loan and are charged based on a percentage of the loan amount, typically ranging between 0.5%-1%.
Read MoreWhile there are many important statistics that help real estate professionals assess how much net profit a property can generate, Cash Flow after Vacancy and Reserves is arguably the most important as it is the most accurate, all-inclusive metric of the earning capability of a given property. It is an excellent baseline statistic to read before going into a deep analysis of the specific revenues and expenses of a property, as it nets all of those values into one clean value.
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