[Spencer Burton]

7 years, 7 months ago in reply to: Value-Add Office Investment #3148

This is a great question; one that requires more than a simple response on this thread. So, I’m working on a written and video tutorial showing you how I would model the scenario you describe, together with a few other things to keep in mind when using the Ai1 to model value-add opportunities. I hope to have the walkthrough completed by the end of the week, if not sooner. Standby!

[Spencer Burton]

7 years, 7 months ago in reply to: Increasing the number of unit types in Multifamily RR tab #3146

Unfortunately, there is no easy way to add additional unit types to the MF module. I would recommend adding a new tab to the model, drop in all of your unit types in that custom tab, and then combine similar unit types in that custom tab to get to 25. Then link your custom tab to the MF-RR tab.

[Spencer Burton]

7 years, 7 months ago in reply to: Cannot download – link expired #3140

Glad to hear it! To those who’ve paid for the model, I send out a new link each time I update the model.

[Spencer Burton]

7 years, 7 months ago in reply to: Multi building phased development #3142

Hi,

Great question. There are two ways to model a multi-phase development. The first is to model each phase in a separate file, as if they were two separate properties. You would do this if each phase had a unique ownership structure, and/or you wanted to view/understand the cost, operations, and value of each phase separately. This option would also allow you to model separate construction loans and permanent loans for each phase.

The second way is to model the two phases in one file. You would set your ‘Development Length’ (Summary tab cell M13) to the total of the two phases, but set your Operation Begin date (Summary tab cell M16) to the date when Phase I delivers with the Stabilization date (Summary tab cell M17) to the date when the project (phase I + phase II) is fully stabilized.

Keep in mind with option two, you would still only have one construction loan and one permanent loan. The permanent loan funds at stabilization.

[Spencer Burton]

7 years, 7 months ago in reply to: Cannot download – link expired #3136

Links downloaded from A.CRE expire after seven days. We do this for a variety of reason. One, we don’t want links to old versions of our models active when newer versions of the model exist. Two, there are server-side issues with having too many active links in circulation and thus we’re forced to put an expiration date on the links.

The assumption is, that recipients of our links will download the model to their desktop within seven days of receiving the link. I recognize it doesn’t always work this way, but in the great majority of cases this does happen. With that said, if you received a link, and for whatever reason were unable to download the file before the end of the expiration period, you can either 1) return to the download page and request a new link, or 2) email us and we can send you a fresh one.

[Spencer Burton]

7 years, 7 months ago in reply to: Self Storage #2972

Adding functionality for modeling self storage in the Ai1 would be a simple thing. The challenge I have, is I have limited experience modeling this property type. Specifically, I’m not as familiar with the income and expense items typical with self storage. If you, or someone reading this, has a self storage operating statement you’d be willing to share, I could quickly add this property type to the model.

[Spencer Burton]

7 years, 8 months ago in reply to: Add Hotel As Property Type #2968

Thanks for the request. Given how different underwriting hotel investments is, were exploring building a standalone hotel model instead of trying to build a hotel module for the Ai1.

[Spencer Burton]

7 years, 8 months ago in reply to: Loan Fees as Percentage #3336

I appreciate the suggestion and I think it makes sense to implement. I’ve added it to my change request list for inclusion in an upcoming version of the model.

[Spencer Burton]

7 years, 8 months ago in reply to: Monte Carlo #3334

I am considering some basic probability-driven assumptions and Monte Carlo simulations when I build out the scenario analysis portion of the model. With that said, I don’t plan to get into building out the scenario analysis modules until later this year or early next – time permitting.

If you’re interested in reading up on the content we’ve created on this subject, you can check out:
Stochastic Modeling and Monte Carlo Simulations

[Spencer Burton]

7 years, 8 months ago in reply to: Student Housing Module #2946

A Student Housing module was added to v0.5.0, together with a Seniors Housing module. No changes were made to the base methodology of the model in modeling these property types, however nomenclature specific to these property types and labels were updated. Also, in the case of Student Housing, ‘Units’ are changed to ‘Beds’ to reflect that leases (rents) are per bed, not per unit with this property type.

I’m planning on doing a walkthrough on how to model a SH deal using the Ai1.

[Spencer Burton]

7 years, 8 months ago in reply to: After Tax Calculation #2966

Great suggestion. I’ve added it to our feature request list.

Thanks!

[Spencer Burton]

7 years, 8 months ago in reply to: Limiting Entries to Numeric Values #3332

The unnecessary data validation lists in Column G of the Summary tab must have been left over from previous edits. I’ll clean those up for this weekend’s update.

Great idea to add some sort of comp analysis. I’ll see what I can put together for a future release.

[Spencer Burton]

7 years, 8 months ago in reply to: Limiting Entries to Numeric Values #3328

Great suggestion and actually something that’s been on my to-do list. I’ll look to include additional data validation rules in upcoming releases to avoid the errors you mention.

Thanks!

[Spencer Burton]

7 years, 8 months ago in reply to: Construction and Start of Operation Timing #3134

Yes, this is possible. On the Summary tab, you’ll notice a “Operation Begin” date. Just set this date equal to the Analysis Start date and operations will occur concurrent with construction.

With that said, there are some limitations the model presents for this scenario. The first is, modeling downtime during construction will require some finessing. If you expect downtime during construction, you will likely have to apply a manual (custom coded) vacancy assumption to those periods. This can be done in the monthly cash flow section of the OpSt tab. My recommendation would be, if you change the default formula to color the font red to remind you which cells were changed.

Another limitation has to do with financing. By default, when the development module is turned on a construction loan begins funding at analysis start (see Sources and Uses tab for construction financing assumptions). That construction loan is then taken out by a permanent loan (see Perm. Debt tab) at stabilization (per date set on Summary tab). So if you intend to fund acquisition with a permanent loan, and then rely on additional financing for the construction period, you’ll have to customize the debt. Without knowing too much about your situation, one work around for this would be to set the stabilization date equal to analysis start (i.e. no construction debt), and then customize the secondary permanent debt (Perm. Debt tab) to handle your construction financing needs.

Best of luck!

[Spencer Burton]

7 years, 8 months ago in reply to: Macro 'set construction loan amount' won't run #3132

Hi Alex,

That is very strange. I downloaded your file and I’m not able to replicate your issue. When I press the ‘Set Construction Loan Amount’ button on the ‘Sources and Uses tab’ in your file on my end, the Macro runs correctly and the Construction Loan amount (C7) adjusts accordingly. Perhaps it’s a Excel version issue? Can I ask, what operating system and version of Excel are you running?

Quick tip: If the actual LTC (‘Sources and Uses’ cell E8) and the target LTC (‘Sources and Uses’ cell E7) are too close (e.g. 70.0% and 69.9%), when the Macro runs Excel deems the values close enough and nothing happens. To correct this, set the target LTC to some value much less than the target (e.g. 50%) and hit the ‘Set Construction Loan Amount’ button. Then, change the target LTC back to your desired target LTC (e.g. 70%) and hit the ‘Set Construction Loan Amount’ button again and you will get the value you desire. This tip isn’t likely to fix your issue, but is related and for the benefit of others.