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Level 2
Level 2: Welcome
With Level 2 comes one of the major components of any development and investment appraisal, finance. While being an easy concept to grasp, it will be the first slightly complicated task you will learn to model. What I have provided in Level 2 is grassroots finance modelling that will become a little more difficult to master the deeper we delve throughout these lessons and add on more tiers. The great thing about modelling finance is that it is generally a standalone module, by saying this I mean once you do it once (and your company adheres to those same debt rules/terms going forward) then you don’t really have to do it again, it can simply be copy and pasted from one sheet to another.
Level 2: About
Level 2: Features
Level 2 introduces;
Construction finance with a simple draw schedule built into the cash flow
Investment finance with a split capital and interest payments
Buildable GIA in square footage (build cost will always be based off this)
A 10 year monthly cash flow – important for modelling precision
Additional cost items
Additional levered results
Excel formulas;
EDATE – Adds on months to any given date. Cell Q10 (Feb-21) is 1 month forward from cell P10 (Jan-21). Use this function to create dynamic cash flow dates off a starting date (G6).
PMT - Is a financial function that returns the periodic payment for a loan. All you need to do is stick in the interest rate, the number of periods of payment and the loan balance. The result will be a combination of both capital and interest repayments, it is up to you to separate them.
MIN – Returns the smallest number in the range/selection. This helps with forcing numbers never to go below a certain set amount of your own choosing.
MAX – Returns the largest number in the range/selection.
XIRR – Because my dates are no longer constant (different amount of days in each month) I need to use XIRR to produce a proper IRR result.
Whilst every effort has been made to ensure complete accuracy, BTR Ireland accepts no responsibility to anyone whatsoever for any errors in this financial model or for any error or loss that may result from using it. Potential investors and their professional advisers should review and carry out their own due diligence on this financial model themselves and form their own views in relation to the reasonableness, completeness, accuracy of calculations and achievability of the projections.
Level 2: Text
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