If you just purchased REIF, here are a list of key places to begin model. REIF has all the inputs and customizations you need to evaluate your real estate project and is also easy-to-use.
The items detailed below (in sequential order) are the starting points and perhaps all you need to build your model as our calculations will do the rest.
Our settings come pre-set so much of tabs (see "8) Review Other Data Entry Tabs" below) can be ignored unless you want to adjust to your preference as the settings are already entered.
You can also navigate easily throughout the model by clicking "TOC" in the top left of most tabs. This takes you the Table of Contents tab, where you can click on links to get to all tabs in the model.
Lastly, if you have any further questions after reviewing the information below or you would like a custom report or metrics built to your specifications, please email us at info@buildreif.com.
1) "How To" tab: Walkthrough of how to use the model, how the it flows, color coded tabs and what each input tab does, color coded cells, data restrictions/locked cells, reports details, and more.
2) "Model Basics" and "Project Summary" tabs: Enter general information about your project. Most data here flows to the other Input tabs listed below, though some of it flows directly to the Financial Reports. Below are some key data entry points on the tabs.
Model Basics
Property Name: name for your model
Current Property Evaluation: if you currently own the property and want to evaluate it on a go-forward basis
For more details on using to REIF to make a sale decision on an existing property, see Sale Evaluation in REIF
Number of Partners: general partners on project; breakdown will be pro-rata
About the Property and Property Description: details on the property that will flow to the Project Overview reports
For more details on REIF Reports, see REIF Reports
Project Summary
Acquisition Cost
Value will NOT be used if your model is for a Current Property Evaluation
Initial Development Costs: cost of construction and development build out the property at the start of the model; can spread costs up to 36 months
Development Descriptions will flow to the Project Overview reports
Current Property Evaluation: details on the current value and basis; will be used to determine your "NET Equity of Current Property t=0"
Values will ONLY be used if your model is for a Current Property Evaluation
For more details on using to REIF to make a sale decision on an existing property, see Sale Evaluation in REIF
Sale Inputs: when you plan to sell the property, if ever
You can leave this as "None" if you're unsure and evaluate the model on a yearly basis
Equity Capital Contributions t=0: cash outflows flow to Financial Reports at t=0
"% Down" will flow to the "Loan INputs" tab where financing terms can be adjusted
Cash Reverses (e.g. Start Up Costs, Working Capital, etc.") flow from the "Months" and data entered on the respective INput tabs.
Return: Equity Capital Contributions t=0: "Equity Capital Contributions" + "Adjustment" to be used for Financial Metric Return calculations (likely the same as "Equity Capital Contributions t=0")
For a Current Property Evaluation, the Net Equity at t=0 will be used
"Current Loan Balances" will flow from the "Loan INputs/OUTputs tabs" and "LOC INput/OUTput" tabs
For more details on using to REIF to make a sale decision on an existing property, see Sale Evaluation in REIF
Capital Stack: Summary of Equity and Debt financing that flows to Financial Reports
3) "Loan INputs" and "LOC INput" tabs: Enter the various loan financing terms (type, duration, interest rate, etc.) as needed to build the formula. Some values may flow from the "Project Summary" tab, but can be adjusted. Values can be customized on the "Loan OUTputs" and "LOC OUTput" tabs, which are brown and located toward the end of the model.
4) "Cash Inflow INputs" tab: Enter your Cash Inflows (e.g. Rental Income) and the various parameters (date, amount, etc.) needed to build the formula. Formula values can be customized/adjusted as needed on the "Cash Inflow OUTputs" tab.
For more details on customizing REIF data, see Customize Formula Data
5) "Expense INputs" tab: Enter your Cash Outflows (e.g. Expenses; do NOT include Renovations/Capital Improvements) and the various parameters (date, amount, etc.) needed to build the formula. Formula values can be customized/adjusted as needed on the "Expense OUTputs" tab.
6) "Cap Imprv INputs" tab: Enter your Renovations and Capital Improvements, if you plan on doing any, and the various parameters (date, amount, line of credit, etc.) needed to build the formula. Formula values can be customized/adjusted as needed on the "Cap Imprv OUTputs" tab.
7) "Inv Summary Settings" and "Report Settings" tabs: Enter settings for Financial Reports, Metrics, Conditional Formatting, and the Project Grade and Score.
8) Review Other Data Entry Tabs:
Cash Acct INputs/OUTputs: Enter Cash Account settings - Minimum Balances, Interest Rate, Discretionary Distributions, Line of Credit Pull (Cash Flow Deficit)
Property Value INputs/OUTputs: Enter Property Growth Settings (e.g. % Growth vs Cap Rate)
Comps INput: Enter data for comparable properties to generate a Discount/Premium, which will flow to Financial Reports
Cap CONTRIB/DISTRIB INputs/OUTputs: Enter your Contributions and Distributions and the various parameters (date, amount, etc.) needed to build the formula. Amounts will flow to Financial Reports, regardless of Cash Flow.
For Discretionary Contributions and Distributions, please see the "Cash Acct INputs/OUTputs" tabs.
Inc Tax INputs/OUTputs: Enter Income Tax settings, which may flow to Financial Reports depending on your selection.
Chicken Scratch: Create custom formulas, which you can use to flow elsewhere in the model.
9) Review Model Reports - Blue Report tabs: Review all the inputs you entered and customized above and make your investment decision!
The " Project Grade and Score" synthesizes 75+ Financial Metrics into a single, all-encompassing data point to analyze your project quickly and accurately - fast, comprehensive analysis to make a sound investment decision in 15-minutes.
Support Guarantee: If you have questions or issues using the REIF model, we’ll provide assistance, including a web meeting if needed.