[Spencer Burton]

4 years, 2 months ago in reply to: Selling Building in Portfolio Before Analysis End Year #3016

Unfortunately, out of the box it’s not possible to have a partial sale prior to the end of the analysis period. But glad to hear you’ve been able to figure it out manually.

I’ll look into what it might take to make this functionality dynamic.

Thanks for the suggestion!

[Spencer Burton]

4 years, 2 months ago in reply to: Capitalizing TI & LC #3012

Hi SamMorris,

Thanks for the question. The solution to this would be to use the Development module, set Operation Begin to month 1, and enter all capitalized costs on the Budget tab. The “Land Cost” would include property acquisition in month 1 of the analysis, and any subsequent costs meant to be capitalized are entered in the project budget.

I have planned to create a tutorial in the coming weeks to explain this concept, as this question has come up several times recently. I’ll look to update this thread when that tutorial is live.

Spencer

[Spencer Burton]

4 years, 3 months ago in reply to: Lender Reserves (Perm Debt tab) #2936

No, E22 is for visualization purposes only. An All-in-One user asked me to add something to help estimate reserves that a lender make request, and so I created that simple module. But the results of E22 do not flow into the actual analysis.

Spencer

[Spencer Burton]

4 years, 3 months ago in reply to: Legacy Debt #3318

This is a really good question. At some point I’ll put a tutorial together on how to do this, as loan assumptions are fairly common and the model isn’t especially intuitive around this concept.

To enter an existing loan into the model, you’ll first need to know the following information:

1) Existing loan balance
2) Original amortization in months (e.g. 360 for a 30-year loan)
3) The monthly amortizing payment amount. Also the monthly interest-only payment, if the loan still has IO period left
4) If there is IO left, how many months
5) How many months are left on the loan term

Enter the existing loan balance in cell E12, the original amortization in cell E15, the IO remaining in E18, and how many months are left on the loan term in cell E17.

Then, override the ‘Amort. Payments (Monthly) and ‘IO Payments (Monthly) calculations (cells E19 and E20) with the actual amortizing and IO payments.

With the above values entered, and assuming the loan interest is charged on a 30/360 basis, the model will amortize the loan correctly.

With all of that said, there’s one issue I need to fix (I’ll include this in the next release). The Perm. Debt module didn’t originally allow for a mid-hold refinance. When I added the Refinance Debt module, I failed to account for a self-amortizing loan payoff mid-hold. As a result, if the existing loan’s term ends during the analysis period, the ‘Loan Payoff’ row (Perm. Debt row 16) will output an erroneous payoff in the payoff month.

To correct this, simply set the amount in cell E21 to 0.

Thanks for your contribution to the model!

[Spencer Burton]

4 years, 3 months ago in reply to: AI1 – Sponsor Split with No Capital Invested #3316

Hi drdc1135,

Thanks for the comment! Unfortunately, out-of-the-box, this is not yet supported; although it should be! I’ll add this to my feature request list and include it in the next version of the model.

Now if you’re looking for a workaround. Go to the Equity CF tab and set the Sponsor equity contribution percentage (cell C11) to 0.0001%. This will trick the model into keeping the Equity CF module on, while limiting the Sponsor’s contribution to essentially 0. From there, you can set the Sponsor Promote to 30% (cells F18:F20) based on the hurdles you set in cells D18:D20.

Best of luck!

Spencer

[Spencer Burton]

4 years, 3 months ago in reply to: Difference between Monthly and Annual LP Total Contributions in Equity CF tab? #3314

Hi AC_VT,

Appreciate the kinds words – glad you’re finding value in our site!

And you’re correct, when using the construction module with a value-add scenario, the annual cash flow module isn’t going to tell you much. This is because time zero is not used when the construction module is turned on. And since with annual analysis there’s only one cash flow period per year, the impact of the large negative cash flow early in the year is offset by the positive cash flows in that same year. And so that one annual cash flow nets out to a value that is not representative of the actual situation.

This is especially pronounced in the Partnership-Level returns (i.e Equity CF), but also in the Property-Level returns. And so my recommendation is to ignore the Annual Returns when using the Construction Module. The Annual Operating Cash Flow reports (e.g. ORI-OpSt) are helpful to visualize the year, but otherwise the volatility of the cash flows early in the analysis period make annual periods for return calculation purposes suspect.

Spencer

P.S. If you’re wondering about treatment of Time Zero in the All-in-One, check out this post.

[Spencer Burton]

4 years, 3 months ago in reply to: Period headers – ORI-RR #3008

In the initial launch of the All-in-One, rent bumps occurred on the annual anniversary of the operation begin month. This of course was less precise, since in practice annual rent bumps tend to occur on the annual anniversary of each lease’s start month.

In a later release, I built logic that bumped rent annually based on the lease’s start month. As a result, the rent bump month for each tenant is different and so the previous header cells were no longer accurate. So instead, I changed the header to read: “As of Start of Lease Year:” 1, 2, 3, etc.”

[Spencer Burton]

4 years, 3 months ago in reply to: Lender Reserves (Perm Debt tab) #2932

Thanks for the heads up! If you look at the latter half of the Lender Reserves formula, the MF-OpSt!J34/12 portion should read ORI-OpSt!J34/12.

I’ll include a fix in the next version of the model.

[Spencer Burton]

4 years, 3 months ago in reply to: Sponsor Disposition Fee Not Accounted For in Sponsor Cash Flows? #2930

Hi mhagan,

On my end the disposition fee is appearing both in the ‘Sponsor Fees’ line (row 144 of Equity CF tab) as well as in the ‘Total Sponsor Distributions’ line (row 122 of Equity CF tab). Perhaps we’re looking at different lines?

Opening up the Equity CF tab of v0.761 and going to cell DV122, the formula is:

=IF(DV113=””,””,DV161+DV176+DV191+DV198+DV144)

DV144 is the Sponsor fees line, and if you dig into DV144 you’ll find the cell is equal to asset management fees in that period plus disposition fee.

Let me know if I’m looking at the wrong cells.

Thanks again for digging into the model!

Spencer

[Spencer Burton]

4 years, 3 months ago in reply to: One-Time, Non-Core Asset Dispositions #3312

Hi Eddystone,

This is a great suggestion. Out of the box, the model does not have this capability. But I’ll add it to our list and see if it’s a feature we can include in a future release.

Appreciate the contribution!

Spencer

[Spencer Burton]

4 years, 3 months ago in reply to: Student Housing Module #2950

Hi Rooshi,

I responded to your inquiry via email (sent over some OM’s I was able to scrounge up). I haven’t created a walkthrough of the Student Housing module for the Ai1, but I’ll add that to my to-do list. Not sure I’ll get it done before you need it though, so email me if I can answer any other questions you have.

Best of luck on Friday!

Spencer

[Spencer Burton]

4 years, 3 months ago in reply to: v.76 of All-In-One Model – Property CF Funding Starting in Month 1 #2928

Hi mhagan,

Good catch! I’ve released an update that fixes the issue.

In update v0.76, I’d changed the permanent debt funding month to be an optional input – previously it had been driven by stabilization date, which lacked the flexibility some needed. The unintended consequence of doing that, is that it broke the graphs in the development module. To fix the graphs, I had to set the PermDebt_Funding_Month named range to be equal to the greater of the actual permanent debt funding month or 1. The problem is, the actual funding for the permanent debt had been driven by the PermDebt_Funding_Month named range! Such that when the development module is turned off, the permanent debt funding month is 1 – even when the input is set to 0.

I created a new named range to get around the issue and it appears to be working properly now.

Thanks for finding this bug!

Spencer

[Spencer Burton]

4 years, 5 months ago in reply to: All-in-One Mezz piece for development loan #3298

Unfortunately, the nuances of the backend make adding mezz during development nearly impossible in the All-in-One model. I’m starting to map out a massive update to the model for 2020/21 that would completely rebuild and simply the backend, but that’s at least 6 months to a year away.

In the meantime, have you looked at Michael’s hotel development model? While I don’t think it includes the option to model mezz yet, the structure is much simpler and so adding mezz much easier. It’s also a far more complete solution for modeling hotel operating cash flow than the All-in-One. Check out the model here and consider emailing Michael about adding mezz to it:

https://www.adventuresincre.com/hotel-development-model/

[Spencer Burton]

4 years, 5 months ago in reply to: Bug in Construction Model of latest Ai1 Beta v0.7 #2920

Hi Alan,

Thanks for the heads up on this. While the logic written that way won’t change the answer, it’s sloppy! I’ve added this to my list to correct in our next release.

Appreciate the support!

Spencer

[Spencer Burton]

4 years, 12 months ago in reply to: Construction Loan / Line of Credit after Tenants Vacate #3308

Ozzie,

The All-in-One doesn’t specifically contemplate this situation, but you might try using the ‘Junior/Mezz Debt module (Perm. Debt tab) together with the ‘Senior Debt (Refinance)’ module. The Junior/Mezz Debt could be renamed ‘Bridge Loan’ and set to fund in year 4. The Senior Debt (Refinance)’ could then takeout the bridge loan in year 6. The bridge loan would fund all at once as it’s currently modeled, but you could manually manipulate the module to work with your situation.

Best of luck!

Spencer