Hemp Farm Development Model
 
 

FIND THE PERFECT MODEL THAT BEST SUITS YOUR NEEDS BY PURCHASING OUR CUSTOMIZABLE MODEL

 
 
 
 
 
 

OVERVIEW OF MODEL

For the past few years, the need for farm development models have been on the rise and as a result have become one of the most popular models in our library.

Our clients often ask us to do two things: provide additional detail on our hemp farm development models, and highlight features of our hemp farm development model and compare them to other competitors.

This guide will exclusively cover the hemp farm development model. If you would like to know more about real estate investing or Excel, please check out our blog. If you want to learn how to underwrite an investment, please check out our Real Estate Finance Certification Courses at Top Shelf® Academy.

 

PRODUCT FEATURES

 
 
 

Video Walkthrough of Our Hemp Farm Development Financial Model in Excel

 
 
 

Note about Models

The hemp farm development model has been used to underwrite $74 million in hemp farm transactions.

Models downloaded from Top Shelf Models are continuously being updated and improved.

Version Notes: v1.1

For the past 18 months, we have thoroughly tested and vetted these models internally.

  • Additional conditional formatting

  • Extra functionalities added to:

    •  Assumptions Tab

    • Taxes Tab

    • Construction Budget Tab

 
 

MODEL OBJECTIVES

 

+ ACCURACY

The hemp farm development model must be accurate. If you are investing millions of dollars into a hemp farm development project, the model needs to be precise and exacting with zero formulaic errors. Without an accurate model, the capital requirements or expected returns could be misstated. Our hemp farm development model is a 100% unlocked Excel file with fully transparent formulas. While the model is fully customizable, we are confident that it will contain everything you need.

+ EFFICIENT AND INTUITIVE

All tabs need to have a purpose, and all inputs should be organized in a logical way that is easy to follow. Anyone should be able to open the model and understand your assumptions. At TSM, this is important to us because we know that you will be sharing the results of your customized model with your investors, lenders, and partners. Each farm development model includes an easy to use, step-by-step instruction manual. This manual guides you tab by tab, and cell by cell, in order to help you underwrite your very own hemp farm development project.

+SPECIFICATION

The problem with most generic hemp farm development templates is that they are standard and not able to be customized. You will either be required to add additional calculations or remove the sections you do not need. At Top Shelf Models, we have a proprietary Custom Model Builder where you are able to pick and choose the features you need. Some of these features include the ability to refinance, addition of mezzanine debt, as well as an option to choose how many tiers of waterfall calculations. The result is a model with exactly what you need, nothing more and nothing less.

+VISUAL APPEAL

A good-looking hemp farm development model gives the audience confidence that the project is organized and thoughtful. We have included a pre-formatted investor summary tab that can be printed and used for internal and external reports. We also have a model output tab that summarizes the project in a single location so you or your marketing/investor relations team can copy the formatted reports and paste them directly into your OMs or PPMs. We have included several drop-down boxes, elevator buttons and consistent colors/formats using our trademarked formatting style.

 
 
 
 
 

WHY TOP SHELF MODELS?

 

+ CUSTOM MODEL BUILDER

This guides you through a series of questions, allowing you to achieve the exact model you need. Our competitors usually have one hemp farm development model template for hemp farm development, whereas we have a customizable version of our hemp farm development model to cater to your individual needs.

+INPUTS

Competitor hemp farm development models are too simple. They might only have 2-3 tabs in total which sounds great, but that means you are inputting assumptions directly into the cashflows which is not a good practice. It could also mean that the hemp farm development model is missing some much needed complexities that institutional investors look for. The TSM farm development model has dedicated inputs found on the Assumptions and Startup Budget tabs. Also, most competitor models don’t use iterative calculations. Without iterative calculations, the sizing of the debt is incorrect. Our models use iterative calculations to calculate the construction interest so there is no need for manual plugs that you could forget to update.

+PRECISION

Our hemp farm development models are precise and easy to use. Look at the version history of other competitor hemp farm models and you will see the number of mistakes and miscalculations that have been supposedly fixed. It is almost as though the competition is using their customers to vet their own products! We have tested all the calculations and functions in our models BEFORE we offer them to our customers.

+FUNCTIONALITY

We generally have more functionality and control over the assumptions. There are countless examples, but our hemp farm development models have annual control over the revenue and expense inflations. For the exit value calculation, you can select if the cap rate is applied to a forward 12 NOI or a trailing 3-month NOI. For Debt, we have the ability to have fixed/floating loans, SOFR caps/floors, and can size the debt based on an LTV calculation. Again, there are too many examples to list out, but you get the idea.

+EXPERTISE

We are experts at waterfall calculations. Our founder regularly teaches on private equity waterfall calculations at Harvard Business School. Our waterfalls in our hemp farm development models can be either driven off promote or as a percentage of cashflows.

+EASE

We have made the underwriting process as easy as possible. We have included instruction manuals inside each hemp farm development model and all models include 30 minutes of free consultation with one of our financial analysts to answer any questions you have on the model or underwriting a specific investment. We are based in Dallas, Texas and can always be reached by email or phone to support you.

+CRADLE TO GRAVE

We have designed our hemp farm development models to be used cradle to grave. Our competitor’s models have been designed to simply underwrite deals. Our hemp farm development models have been built out to be updated during the operations of the project and include reforecasts of budgets within the monthly cashflows.
 
 
 

PURCHASE OUR FULLY CUSTOMIZABLE HEMP FARM DEVELOPMENT MODEL WITH 4 TIERS OF WATERFALL CALCULATIONS, AND BOTH A STARTUP LOAN AND PERMANENT LOAN.

 
 
 

RECENT BLOG POSTS

Blog
Ability To Refinance Explained

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 More →
What Are Operating Expenses?

Operating 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 More →
Excel Functions for Private Equity: Comment vs. Note

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 More →
Stabilized Returns

Stabilized 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 More →
Excel Formulas for Private Equity: EFFECT

The 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 More →
Millage Rate in Real Estate

The 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 More →
Excel Tips for Private Equity: Custom Formatting

Custom 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 More →
What Are Management Fees?

Management 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 More →
Excel Functions for Private Equity: Format Painter

The 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 →
Unit Mix in Financial Modeling

Unit mix is defined as a mix of different number of bedroom apartments in a development or apartment complex. Normally, the number of bedrooms ranges from one to five, and any given apartment complex will have a mix of bedroom options and different floor plans for each type. Every development is trying to achieve the perfect “mix” of each type of apartment for their property, to maximize profit and keep the property occupied year round. 

Read More →