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  • #693

    Pratikk
    Participant

    Hi Spencer

    I wanted to check the construction loan draw down on development interest calc TAB.

    It seems that the draw down calculation on row 24 allows to draw down more than the loan available.
    It seems there is a breach of facility .
    Please correct me if this is not the case.

    Regards
    Pratik

  • #694
    mm
    Spencer Burton
    Keymaster

    Pratik,

    Thanks for pointing this out! You are correct, when we added the Lender Fees section to the Budget tab recently, we did not configure the loan correctly to pick that up. I’ll include a fix in the upcoming version of the model

    Spencer

  • #695
    mm
    Spencer Burton
    Keymaster

    Quick follow-up on this issue.

    As it turns out, while the Loan Remaining row on the Dev-Interest Calc tab (row 24) is calculating incorrectly, the sources and uses cash flows that ultimately flow into the DCF (and affect returns) are calculating correctly. You can see this be looking at cells U5:CD23 on the S&U tab and comparing that to the DCF (Property CF tab) rows 81 and 82.

    The only real impact of this error, is that the reported Construction Loan amount and the Interest Reserve on the S&U tab (cells C7 and C8) are not correct. The total of the two is correct, which the total is the total construction loan, but the interest reserve is too high and the construction loan before the reserve is too low.

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