Thanks for the model. Where/how would I go about entering fees we charge as developers? We have many fees, two are charged at the beginning (Acquisition Fee & Development Fee) then we charge an Asset Management fee each year, then we have a few fees that we take at a capital event such as guarantor fee and additional property management or equity sourcing fee. Any advice is appreciated.
In the case of modeling a development, land acquisition and development fees would be entered in the construction budget as line items on the Budget tab.
In terms of sponsor fees (e.g. asset management fees, fees charged at sale, etc), the model does not have the option to model those. Given that sponsor fees are partnership-level expenses, rather than property-level expenses, they should be modeled as part of the waterfall (Equity CF tab).
Every partnership is slightly different, and so creating a one-size fits template for these types of situations is difficult. I’d suggest customizing the waterfall (Equity CF tab) for your specific partnership structure to account for those fees. It wouldn’t be especially difficult – just subtract the non-development fees you expect to be paid to the sponsor from the ‘Property Levered Before Tax Cash Flow’, and then add those same fees back into the Sponsor’s ‘Total Sponsor Distributions’ line.
