Single Family Real Estate Excel Financial Model Template
This Single-Family Real Estate Excel Financial Model Template is prepared by Oak Business Consultants, includes a complete financial framework to make well-informed, rational, and robust financial plans and projections. This financial Model consists of all relevant financial statements and performance metrics. It enables the user to consider all operational and financial risk factors.
Single Family Real Estate Excel Financial Model Template is highly adaptable and dynamic for forming a 5-year monthly and yearly 3 statement (Income Statement, Balance Sheet, and Cash Flow Statement) financial projection for a startup or existing developer.
Here is what Single Family Real Estate Excel Financial Model has to offer in detail. Starting from the input sheet, investment inflows for a starting business are very critical. Since only a few options are at the desk for a startup firm; keeping the limited availability of funding sources in mind; this model offers 3 investment input sources. Namely, private equity, financing, and equity investment from a 3rd party investor. This mix yields the best outcomes for the purpose of financial valuation, where equity and debt holders share the benefits and risks of their investment. This sheet also gives liberty to incorporate any associated costs that are involved in the process of property acquisition in order to arrive at accurate cash outflows.
Whenever an investor buys an existing building, it needs renovation as per one’s need and business ideology. Single Family Real Estate Excel Financial Model does cater to this, adding a fully loaded renovation cost structure plan in a separate sheet under the operational cost head, which will be covered below. In order to calculate the true cost of financing the project, Single Family Real Estate Excel Financial Model asks for a loan-value ratio, and it automatically calculates the financing amount that is to be arranged by the owner. Monthly borrowing cost is also calculated spontaneously just by entering financing terms and mortgage rates.
Similarly, the investment holding period is ascertained if the user enters its time to renovate, hold, and ultimately market to sell. This three-phase holding period is dynamic enough to cater to the delay if, whatsoever, investor experiences while selling the property in the future. Revenue generation for a single-family structure is primarily based on rental income and that too comes with vacant days in a year, apparently, unoccupied days are a cut on revenue, therefore it is safe to assume as cost charged against business revenues.
Just like, Single Family Real Estate Excel Financial Model, which facilitates in determining true property acquisition cost if an investor wants to sell the property in the future, Single Family Real Estate Excel Financial Model Template adjusts future sales price along with all relevant costs needed to dispose of the asset.
Operational Expenses Sheet
The operational expense sheet is 2nd one in the row, which entails all expected recurring and non-recurring expenditures, which the owner must account for while deciding to invest in a single-family real estate venture. Sheet starts from employees and consultants overhead cost; investors can add up to 15 employees in this sheet, apart from a fixed salary, employees benefit worker compensation provision is also provided so that users don’t have to look around for supplementary payroll expenses, which arise from time to time. Single Family Real Estate Excel Financial Model Template also incorporates expected cash outflows caused by the hiring of any external business advisor/ consultants in support of revamping business strategy.
The capital expenditure section includes long-term investment in property building itself, office furniture, and any additional expense that users would reckon should be included in the Capex calculation. One key feature of our model in Capex calculation is, it gives users an option to choose in which month out of 60 months funds should be spent on long-term assets. Thus, Single Family Real Estate Excel Financial Model is more flexible rather than just one-time Capex input as offered anywhere else.
Recurring expenses are those which kept arising throughout the year, so this model gives special attention to cater to various types of recurring charges. The fixed expense includes insurance and depreciation charged on fixed assets. Insurance expense is given a fixed percentage rise that can be edited by the user if desired. Operating cost and management-related costs are also included in the recurring expense head, with an option of a monthly rate hike should the user foresee expense rising in the future.
Investor/ user might have to renovate the property after the initial purchase, that renovation expense is included as a whole in the input sheet. Renovation expense is considered as an initial outflow rather than a recurring expenditure. The components of total renovation cost are calculated in detail in the sheet operational expenses. Every item in the renovation cost is discretionary, meaning it is up to the user to enter expenses in all renovation cost items or skip some. All expenses, for instance, labor, steelworks, door works, HVAC, plumbing, home appliances, wall decoration roof installation, and many others; all of these are on monthly basis and the month ends where the user enters renovation months in the input sheet. After that month no renovation cost will be charging to the business in the Model.
Office expense also includes or may include meals, client entertainment expense, and business-related traveling expense as well, so our model does give a cushion to include all such outflows while performing financial projections. Similarly, office maintenance expense, utility expense, bank charges, and any license cost are also a part of the operational expenses sheet of the Model.
For convenient user guidance, Single Family Real Estate Excel Financial Model has two sheets where users can enter/edit/alter any input. These sheets are named “Input and operational expense sheet”, all the input cells are in the peach color, and cells having formula are in the color gray. Just for the sake of making calculations more understandable traceable back to the source.
Revenue Analysis Sheet
In the Single Family Real Estate Excel Financial Model, from the “Revenue Analysis’ ‘ sheet and onwards, all sheets are output sheets that yield results based on two input sheets discussed above. Starting from the revenue sheet, where revenues or rental income, should we say, is calculated.
The time it takes to renovate the property is not in a link for revenue calculation, because of the fact that property cannot be rent out before proper renovation. Therefore, the revenue calculation sheet is in link with renovation month input, and if the user extends the “renovation month” period then revenue generation will also move forward.
Calculation of vacancy loss is according to the product of vacancy ratio and the rental income. Calculation of the vacancy ratio is in a link with the input sheet and is linking with vacancy loss in the revenue sheet. The user just has to enter days vacant a year in the input sheet and all the calculations from vacancy ratio to vacancy loss are updating by Single Family Real Estate Excel Financial Model itself.
Monthly Profit & Loss Statement
In the Single Family Real Estate Excel Financial Model, the monthly Profit & Loss statement sheet is the first step in developing full-scale 3-statement financial projections for the business. In this sheet, all the previous sheet’s input/output data is in a link, to arrive at the monthly basis income statement. Here, the revenues are calculating from the previously explained Revenue sheet; vacancy loss is in the category of COGS because apparently; it is a rental income-based business and no tangible product/service is sold. It, therefore, has no material or labor-related associated costs.
By deducting vacancy loss from rental income per month we arrive at a Gross profit. After that, operating expenses like payroll, insurance, entertainment, traveling, operating cost, management expense, depreciation, utilities, bank fees, etc are in link with input and operational expense sheet. Users don’t have to jump into income statements to make alterations if desired. Renovation expense is applicable or deductible for only the stated renovating period time according to the input sheet, and the coming year renovation expense is automatically turning zero.
We reach operating income by deducting all the operating expenses from gross profit. Then we adjust this operating income for non-operating income, in this case, the future net sale price of the property. All outflows relating to sales are reducing the gross sale price of the asset to determine the net sale inflow. The triggering month for the sale of assets is in link with the investment horizon period as it is in the input sheet. The expected disposal period is equal to, renovation time plus holding time plus time requirement of marketing and disposing-off the asset. After adjusting to non-operating income, calculation of tax according to the tax rate input by the user is the last step to figure out the Net income.
Yearly Profit & Loss Statement
All the monthly income and expenses from the income statement are clearly visible in the yearly income statement. Here, the Single Family Real Estate Excel Financial Model, users can access how the business is doing on a yearly basis. Right next to the annual income statement, there is a profitability analysis depiction in a bar chart form. It enables users to quickly compare income and expense on a yearly basis; identify the ongoing trend in income and expense, and ultimately take any subsequent decisions as per desire.
The balance sheet and cash flow statement is a forecast based on the inputs from inputs sheets. Along with a combination of income statement and cash flow statement. Cash in the balance sheet is in link with the cash flows statement. This cash is net cash flow from all operating, investing, and financing activities. Net fixed assets are assets at cost. After adjustment for depreciation expense charged in the income statement.
All of these cells are in the link. So users don’t have to worry about establishing these links. Users just have to feed into the inputs and the whole model calculates and delivers the final balance sheet itself. There are no current liabilities but if any liability arises so, in Account payable functions, Single Family Real Estate Excel Financial Model will adjust it accordingly. In long-term liabilities, Single Family Real Estate Excel Financial Model has a loan from the time of acquisition and mortgage payments. Total capital includes investor’s equity and any private equity funding into the business.
Retained earnings are equal to the sum of the net profit of this month and the previous month’s retained earnings. Again, the Single Family Real Estate Excel Financial Model is dynamic enough that it does not ask users to set inputs for any of the balance sheet items and this is the best thing about Single Family Real Estate Excel Financial Model.
Cash Flow Statement
The cash flow statement is based on the data from the income statement and the balance sheet. The model is using the indirect method to calculate The Cash flow from operations. It starts from taking net income from the current month of the income statement. Then adds back non-cash charges like depreciation. Afterward, an increase in the account receivable is reducing the cash flow. Finally, an increase in account payable is an addition to the cash flows.
Cash Flow from Investment
Investing cash flows are the cash outflows on the purchase of property/asset. So the model will accommodate any asset purchase in any month in the given investment horizon of 5 years. Single Family Real Estate Excel Financial Model also makes some comparisons. It compares the month of investment from the input sheet against the existing month in cash flows. As a result, the Real Estate Excel Financial Model, adds asset purchase price in the given month.
Cash Flows from Financing
Financing cash flows consist of all cash flows that flow into the business. It includes investment by the founder, private investor, and borrowings from a lender. All these cash flow figures are coming from the input sheet. The user enters his financing mix so the Excel Financial Model adjusts the financing cash flows accordingly. It requires zero user interference in the cash flows statement.
Repayment of the mortgage sheet is coming from the monthly mortgage payment calculator in the input sheet. And the cash flows statement is also updating automatically. Moreover, the Financial Model stops mortgage payment automatically the loan re-payment is complete.
Net Cash is the total cash in the given month. The opening cash balance of the past month and any increase/decrease in the cash flow activities. Cash flow activities are namely, cash flow from operating, investing, and financing activities. This net cash balance is then showing Cash in the balance sheet. The user does not have to deal with all these complex inter-statement formulas. All 3 statements are taking information directly from the assumptions laid down into the two input sheets.
Project Valuation Sheet
Project valuation sheet is very critical. It is giving the directional strategy to an investor whether the project is good for investment or not? This sheet is connecting to all financial statements projected earlier and asks for little input from the user. WACC, the weighted average cost of capital is the sum of equity and debt holder’s return expectations.
The initial investment is equal to the total cost of the project. The user is inputting it in the input sheet. Equity and debt values in the project investment sheet are also coming from the input sheet. The terminal growth rate is the rate that users foresee, the business might earn after a five-year forecast. The user is inputting this rate, keeping in view a specific industry, country, and region in mind.
The sole purpose of the project valuation sheet is to use the DCF model. It discounts back all future expected cash flows of the firm, at a discount rate or WACC (set by user). The model then determines the NPV/ free cash flows to the firm (both equity and debt holders). It shows if the project has positive or negative net cash flows. To arrive at free cash flows to equity holders the model reduces Debt/ Loan amount. The IRR function in Excel is calculating the IRR. It shows if a project’s IRR is greater than or less than the discount rate.
Startup Summary Sheet
The startup summary sheet provides a quick look at funding needs. Also, for fixed and variable expenses and funding sources. It shows the utilization of the funds in terms of costs. This sheet is a very useful and time-saving tool. It helps in analyzing costs and decide whether to reduce or manage. It helps the company to free up the limited funding available at the investor’s discretion.
The dashboard sheet is about the graphical representation of different ratios and financial metrics. Business owners can use this sheet; to present and market the business to investors in order to seek additional funding.
Diagnostic Tool Sheet
The diagnostic tool sheet again is a compact pitch book for fund generation marketing strategy. Here probable investors can quickly analyze and access profit margins, cash flows, and break-even metrics. Helping them to decide; if to invest in this business or not. All the outcomes of the dashboard and diagnostic tool sheets are Dynamic. The Single Family Real Estate Excel Financial Model calculates diagnostic ratios automatically. It requires little user interference, thus saving time and cost for the business owner.
Why Invest in a Single Family Real Estate Excel Financial Model?
The investment in purchasing Single Family Real Estate Excel Financial Model from Oak Business Consultant is worthwhile, given the cohesiveness, dynamic structure, full-scale projections, investor decision making convenience, built-in & fully integrated business marketing tools for funding purposes make it a must buy. If a start-up business is keen to progress, save its costs, analyze the true picture of financials, and wants to pitch to investors. Then this Single Family Real Estate Excel Financial Model is the ultimate tool to cater to all these business needs.
In short, One can easily edit/modify our Single Family Real estate development financial model in Excel. With only basic knowledge of excel and finance by adding inputs itself. All matrics are updating automatically after adjustment in the input sheet. Here you will find all the necessary financial and valuation reports, including Cash flow, Startup Cost plan, Balance sheet, and income statement. A high-quality financial model like Single Family Real Estate Excel Financial Model makes it possible to foresee the cash flows for the future. It also enables the user to make wise decisions.
Get this detailed Financial Model today at the most affordable price
An Oak Business Consultants Provides Various Financial Model Templates; each industry model has unique revenue and input assumptions based on the industry nature and operation requirement. We have dug into almost every industry and have built 100+ models for every specific niche market.
For Example; a website has a general base model for e-commerce business and several other businesses that come under the E-commerce industry like Online Clothing Business and Online Toy Store, etc.
The pre-built financial models are made to help an entrepreneur, by giving them financial projections for their business. These models provide a prebuilt detail and structure to those who have a similar business revenue model as already available on the website. However, if you have a business model which is unique and have several different revenue streams. Therefore, you need Buy Customization Plans financial model services where you can avail of modeling services as per your business nature and operation requirements.
All pre-built models are Comprehensive and dynamic, designed by expert professionals by considering all the elements any business requires while computing the financial feasibility of the business. The financial model template will provide the assistance to compute the startup summary, detailed monthly and yearly profit and loss statement, balance sheet, cash flow Analysis, and Break-Even Output summary. The template also has project evaluation reports and diagnostic sheets which will allow you to determine the company’s performance in a specified period of time. Moreover, a visual representation of these reports is compiled on a dashboard to make a convenient report overview for the user.
The models will be in Microsoft Excel file format, and they are immediately available for download after making the purchase. A model can redownload at any time in the future from the same account.
The optimal way to use the model is to familiarize yourself first with how the model is linked and structured. There are already detailed instructions on howdetailed how to use the description mentioned under each product profile.
Moreover, then start with the input sheet with the most important assumptions, and start filling in the inputs as per your business information which is clearly labeled and formatted in a pink color cell. For Example; If your region tax rate is 25% so fill it under the tax field, which is already highlighted so then a model will automatically compute all related calculations. The same procedure will go with all operating and variable cost sections, which are mentioned in the model.
Next comes the revenue-related input; then go through the inputs around growth rate, churn rate, prices, and cost of sales, etc. These inputs will be changed from industry to industry; however, the basic structure is the same.
So far, you’ll get basic forecast reports, and now it comes down to looking at the Summary and Key Reports sheet(s) to see if the estimation makes logic: net income, gross margin and net cash flow, etc. Refine and iterates the inputs until you get a final result that makes sense for your business and your industry.
The Financial models are in xls. File format. We would recommend to use Excel or Google Sheets to develop and edit financial models. In practice, We use Excel to build and edit models and Google Sheets to share with clients. Because Excel is usually a faster software for building and designing with so many features, however, Google Sheets can make it convenient for sharing models with the user.
Our models can be used in both Excel and Google Sheets interchangeably; simply upload the Microsoft Excel model template into Google Sheets, and everything will be ready to go.
Undoubtedly Yes! All formulas’ cells and sheets are completely editable and open. Therefore, you can edit anything as per your requirement. But, you must need to consider the cell linkage first before making any change.
How to Edit the Mode?
All peach Areas are your INPUT CELLS. Please fill the PEACH AREA as per your Business situation. All WHITE and COLORED CELLS are CALCULATED and LINKED CELLS.
The Model is easy to use, dynamic and Transparent. We did not use complex formulas to build the Pre-built Financial Model or Financial Template.
Yes, We provide Half an Hour of free consultancy. We help you to explain
- The flow of Pre- Built Financial Model
- Explain Financial Terminology
- Explain How the Pre-built Financial Model work.
You can fix a meeting time with our Expert Financial Consultant and avail yourself of this opportunity to have one to one call with him/her.
By selecting the right model, analyze your industry first and decide under which category you’re business is falling in.
For More Detail, visit our Financial Model Template Shop