Spreadsheet?

8 Replies

Hello

Any one has a downloadable speed sheet they use for buy and hold?, U understand bigger pocket has their own which I intend to use as well, but I like to practice detailed analysis of deals. Preparing myself.

Thank you! 

@Michael Blank analyzer is probably the best one Ive seen for complex deals and commercial size deals.  @Brandon Turner has a very easy to use spreadsheet available on his website, which I use for most of my analysis.

Originally posted by @Russell Brazil :

@Michael Blank analyzer is probably the best one Ive seen for complex deals and commercial size deals.  @Brandon Turner has a very easy to use spreadsheet available on his website, which I use for most of my analysis.

 Can you provide a link to @Brandon Turner's spreadsheet? I would greatly appreciate it!

@Abou C. I live and breathe Excel and have underwritten multi-million syndications. My best advice would be to (only applies in commercial):

  • steer clear of "mentors" and their spreadsheets - most mentors give their students one set of spreadsheets and use a different set for themselves
  • develop your own models (invest the time to learn now) and if not, hire someone who's a professional (not a marketing or IT guy who happens to run this as a side income project)
  • good to see that you want to look @ details. I have come across multiple people who've told me that the model/calculator/deal analyzer indicated that it was a good deal (without providing context around the #). The problem with spreadsheets is that they will ALWAYS follow your instructions. Without context and color around your #s, you won't know why something is happening.
  • hiring a finance professional will add a level of financial sophistication and credibility because you just don't want to provide your lenders/equity partners a spreadsheet print out. You need to be able to talk about all the #s to sketch out the entire picture.

@Omar Khan I think you make lots of good points, however ... some nuances need to definitely be added.

1. Spreadsheets really only offer guidance and the final decision maker should be the investor. So, nobody should ever really say "I made this purchase because spreadsheet xyz told me to do so". 

2. As you mentioned well, Spreadsheets only do what they have been told to do. Just like computer Software. They are programmed by human being and can only deal with data and formulas they have been taught. Go-no-go decisions should involve a lot of information, lots of which cannot be added to a spreadsheet.

3. A Spreadsheet represents also someone's snapshot of knowledge in time. As we grow and learn (I'm sure "Gurus" also grown and learn), newer versions are created to reflect the additional knowledge gained. Same as software, there is version 1.0, 2.0, ... etc. 

4. Spreadsheets should really only complement other criteria. Crime rates, School rankings, Population growth, Investor experience, ... etc cannot be entered into a spreadsheet. Those should have a weight into the final decision.

5. I used multiple spreadsheets, some from "gurus", some I wrote myself ... But, I also have my own check list which reflect my comfort level , my expertise level at the time of the deal, ... etc. 

6. As you learn and grow as an investor, you need to make sure to update your criteria/checklist.