REIF FAQ
 

We leave no stone unturned and built the ultimate Excel based real estate investment model. We consider all the Moving Parts to deliver Comprehensive Financials and a Consolidated look at your potential investment so you can make a thorough investment decision in 15 minutes. Moving Parts: Cash Inflows, Cash Outflows, Capital Improvements, Loans, Line of Credit, Taxes/Depreciation/1031 Comprehensive Financials: Bank Financials, Income Statement, Cash Flow, Balance Sheet, Rates of Return, Valuation, Opportunity Cost Consolidated: Project Grade and Score, Consolidated Financial Metrics Learn more about our Metrics, Reports, and the Project Grade and Score.

We take into consideration all the moving pieces that come into purchasing an investment property: Cash Inflows, Cash Outflows, Capital Improvements, Loans, Line of Credit, Taxes/Depreciation/1031.

Once we have all the inputs and customizations to that input (if needed) our model will generate... 75+ Financial Metrics: Click the link to see all the financial metrics we calculate. Comprehensive Reports: Click the link to download sample reports. Project Grade and Score: REIF provides over 75 Financial Metrics to evaluate your real project and synthesizes those Financial Metrics into a single, all-encompassing data point – Project Score and Project Grade – to analyze your property quickly and accurately. Fast, comprehensive real estate investment analysis to make a sound investment decision in 15-minutes.

In-depth monthly and annual financial statements, as well as financial metrics that provide detail on your investment: Comprehensive Reports: REIF provides over 75 Financial Metrics that when coupled with additional data inputs generates a variety of reports. You can download samples of each report below by clicking the link. Project Grade and Score: REIF provides over 75 Financial Metrics to evaluate your real project and synthesizes those Financial Metrics into a single, all-encompassing data point – Project Score and Project Grade – to analyze your property quickly and accurately. Fast, comprehensive real estate investment analysis to make a sound investment decision in 15-minutes.

There are no differences between the models. The Free Model has everything the paid version has, just a 3 day trial. There is no difference between the monthly and annual pay models. If you would like a custom report or metrics built to your specifications, please email us at info@buildreif.com.

No. However, you are allowed to share the reports with your partnership group, advisors, banks, etc. We have a License Key on each model that is good for 2 computers.

We do offer onboarding and the cost can vary (starting at free) depending on the complexity and the purchase option. Please reach out to us at info@buildreif.com.

Yes, you must have Microsoft Excel to use the model. Excel must be on a Windows computer or partitioned Windows on a Mac. If you're interested in the model, please email us at info@buildreif.com.

No, if you can do data entry you can use our model. We have guardrails, instructions, and notes throughout the model to guide you along. If you can read and follow detailed instructions, you should be able to figure it out. To learn more about how REIF is easy-to-use, please click the link here.

The model has a lot of formulas that can bog it down. Depending on the power of your computer, it could move fairly slow. This is not unusual.

No. We have guardrails, instructions, and notes in the model to guide you along. If you can read and follow detailed instructions on the “How To” tab/sheet you should be able to figure it out. We have more information on how REIF is easy-to-use here. The numbers often speak for themselves, so assuming you put in the correct data and can interpret the Financials tabs/sheets you will be able to get the answers you need. Our settings come pre-set so much of tabs (see more here) can be ignored unless you want to adjust to your preference as the settings are already entered. A good understanding of finance and researching what you should target in terms of your financials would be helpful.

We realize with all the sheets/tabs, assumptions, customizations, and summary the model may be a bit overwhelming when you first open it. The best place to start is to read our blog post - https://www.buildreif.com/post/where-to-start-your-reif-model. This walks you through the various tabs in the model to get you started on the right track. We would also encourage you to read through the red "How To" tab in the model. As you have more questions, take a look at our Model How To Table of Contents - https://www.buildreif.com/post/model-how-to-table-of-contents.

To enter data, you go to the Input sheets/tabs, which are designated by their yellow color. The most logical of these “Assumptions” tabs to start are the “Model Basics” and "Project Summary" tabs. Before you start inputting data in the "Assumptions" sheet/tab, read through the sheet/tab and the various input options. Take a look at each section and input, read through the notes, and outline what matches your situation. Once you have a good idea on that you can start inputting the data that matches your real estate investment. The best place to get an idea of where to start is to read our blog post - https://www.buildreif.com/post/where-to-start-your-reif-model. This walks you through the various tabs in the model to get you started on the right track. We would also encourage you to read through the "How To" tab in the model.

To enter data, you go to the Input sheets/tabs, which are designated by their yellow color. If you want to customize those linear formulas, you can learn more about that here - https://www.buildreif.com/post/customize-formula-data. Only you know your unique real estate investment situation and can edit your data entries accordingly. Further, the model has guardrails, instructions, and notes in the model to guide you along. If you have a question the answer can likely be found in the notes. Our blog post on data entry does a good job of walking you through the process - https://www.buildreif.com/post/data-entry-made-simple.

Your data inputs on the yellow tab/sheets can be customized on the Output sheets/tabs, which are designated by their brown color. Values are entered on the yellow Input sheet/tab and then flow to the corresponding Output sheet/tab. For example, Expenses assumptions are entered on the “Expense INputs” sheet/tab. This then creates a formula that flows to the “Expense OUTputs” sheet/tab where it can be customized away from the formula value. This custom value is what is used in the Financials tabs/sheets. If you don't need a lot of customization, it doesn't matter. You don't need to change any of the corresponding brown Output sheets/tabs. The values you enter on the yellow Input sheet/tab will create a formula value that will still flow to Financials sheets/tabs where you can make your observations. The yellow Input sheets/tabs are built to create a linear output. For example, Expenses have the following inputs: amount, start and stop, the growth rate, are they paid monthly or annually, are they paid every year or every few years. The formula is then created based on these inputs and flows to the brown Output tab/sheet. If you like the formula as is and don’t need customization, simply do nothing at all or ignore the Output tab/sheet and that formula value will flow to the Financials sheets/tabs. The Output sheets/tabs are designed for when you don't have a more linear output you can easily update the values to meet your real estate investment. Our blog post on customization does a good job of walking you through the process - https://www.buildreif.com/post/customize-formula-data.

The “ChickenScratch” tabs are there to give the option to build custom formulas that will flow to other parts of the model. You can leave these blank if you have no need for custom formulas or create your own if you don’t like the layout.

How you interpret is up to you. Everyone has their own unique real estate investment and priorities. What may be financially advantageous for one, might not be the same for the other. We recommend reviewing the Financials with your management team, financial advisors, accountant, or anyone else who might be able to help you make the best financial decision for yourself. You can learn more about our metrics and reports at the links below: Comprehensive Reports: REIF provides over 75 Financial Metrics that when coupled with additional data inputs generates a variety of reports. You can download samples of each report below by clicking the link. Project Grade and Score: REIF provides over 75 Financial Metrics to evaluate your real project and synthesizes those Financial Metrics into a single, all-encompassing data point – Project Score and Project Grade – to analyze your property quickly and accurately. Fast, comprehensive real estate investment analysis to make a sound investment decision in 15-minutes.

The “Project Grade and Score” was formulated so you can do a thorough 15-minute real estate investment analysis. In our view, it’s the single biggest reason to purchase the model and provides everything you need summarized and detailed in one easy to read report to make your investment decision. REIF provides over 75 Financial Metrics to evaluate your real project and synthesizes those Financial Metrics into a single, all-encompassing data point – Project Score and Project Grade – to analyze your property quickly and accurately. You can choose up to 15 Key Financial Metrics and up to 5 Key Years. You then weight each of those Financial Metrics and Key Years you selected to generate the Project Score and subsequent Project Grade. Learn more here - https://www.buildreif.com/post/project-score-and-project-grade.

Conditional Formatting helps highlight values that are better or worse than your Target Metrics. The different colors allow you to analyze the values more quickly for your analysis. In the model, Green = positive outcomes that exceed the target bogey and Red = negative outcomes below the target bogey. If you don’t want conditional formatting, you can turn it off on the “Report Settings” tab. Learn more here - https://www.buildreif.com/post/visualize-data-through-target-metrics-and-conditional-formatting.

The model will run both Nominal and REAL values. REAL values take future values and calculate them in today’s dollars. Nominal is the actual value at that date.

Cells and fonts are different colors to designate either: You can fill in a value or drop down and select a value You entered a customized value that is different from the formula value (this is okay, just outlines you did so) No value needs be entered given your inputs on prior assumptions The value can't be changed and is set given the formula A new section or a heading Learn more about data entry here - https://www.buildreif.com/post/data-entry-made-simple.

Notes are in cells (mostly data entry cells) where some level of instruction or clarification may be needed. Notes contain details to help you figure out how the model works. Notes are in every cell where there is a little red triangle in the right corner. When you scroll over them, they pop up and provide info on the data input in that cell and how it's used. By reading the notes, they can guide you through the model making sure the data you're entering matches your financial situation and providing instruction and detail where needed in the model. The image below details the what, where, and how the notes operate.

If you can't click on a cell, change data in that cell, or enter certain data in a cell this is by design to make sure the formulas flow properly. If a cell is blacked out that means data need not be entered in that cell given prior data you entered. These are the guardrails noted in the prior questions. We have the model set up so you can only click on the cells where the data can be changed to prevent formula errors. Cells where data flow by a formula can't be changed. This is to prevent the wrong data from being entered. The cells are white. Cells that you can click and change data are light blue or tan. If a message pops up that says "The value doesn't match the data validation restrictions defined for this cell." That means we restricted the cell from improper data from being entered so the formulas flow properly. For example, when entering an Expense the value needs to be positive for our formula to work. Thus, if you try to enter a negative value the model prevents that from happening. Cells are blacked out to designate data entry that is not needed or possible to remove assumptions that are not currently being used. However, these cells will stop being blacked out if they are needed. For example, if you’re doing a “Fixed Mortgage” for your loan type then the “ARM Period” will be blacked out; however, if you select “ARM” for your loan type the cell will no longer be black and you can enter the “ARM” term. Learn more here - https://www.buildreif.com/post/data-entry-made-simple.

We tried to build the model with safeguards so this would not happen. However, if it does please send us an email (info@buildreif.com) with the model and explain what happened. Perhaps you entered data improperly or we have a faulty formula.

On the top left of some sheets/tabs you will see a cell that says "Cells: View or Hide" with a little arrow in the bottom right. Click that arrow and uncheck "Hide" and then click "OK". Only the cells that are visible will be shown now. If you add data (e.g. new Cash Flow), simply run the above again and the cell will now appear as it was hidden initially.

Those are links that take you within the model to the Table of Contents and Project Score and Project Grade when clicked. The Table of Contents links to every worksheets within the model. This way you can quickly navigate to any other worksheet in the model. For example, let's say you're entering expenses and want to see how it changes the cash flow. You can enter the data on "Expense INputs" then click "TOC", from there you can click on the Monthly or Annual "Financials" link, which will take you right to that worksheet. The "Scorecard: " links directly to the "Inv Sum Scorecard" worksheet. Next to "Scorecard: " you will also see the current grade for the project, that way you can see how changes in assumptions will impact your Project Score and Project Grade.