Posts

Construction Draw Schedule: Accounting For True LTC
Mitigating A Common and Potentially Costly Error During Development Underwriting
When lenders provide debt for a development project, they lend based on a Loan-to-Cost ratio (LTC), which is simply the percent of the total budget the lender…

Single Family Home Construction Pro Forma for Home Builders
I received a request this week to build a model to assess the financial feasibility of building a new single-family home. Given that I wanted to get a model up before the New Year and that I have a number of single-family home building models…

Real Estate Development Tracker
One of the many challenges of both analyzing real estate development deals and managing development projects is understanding and tracking the numerous differing but intertwining work streams. The more a development team takes the time…

Bonus Content - Gantt Chart and Weighted Average with Multiple Conditions
I have two updates/improvements to previous posts I thought I'd share with our readers today; call it, bonus content! The first, is a dynamic Gantt Chart tool I recently added to my Construction Draw and Interest Calculation Model. The second,…

How to Use the Construction Draw and Interest Calculation Model
As promised, I've recorded a tutorial on how to use my construction draw and interest calculation model. The 20 minute tutorial walks you through how to use the model to forecast construction cash flows during your development period. The model…

Construction Draw and Interest Calculation Model
I've been meaning to include this equity/construction loan draw and interest calculation tool in our library of real estate financial analysis models, and finally got around to uploading it today. I built this awhile back at a time when…

S-Curve Forecasting in Real Estate Development
One of the reasons Mike and I blog, is to force ourselves to be continually learning. I built the first version of my real estate waterfall model, because I wanted to better understand the mechanics of modeling an equity waterfall with…