All Forum Posts by: Jason Moore

Thanks for the emails.

When you are creating financial models for an investment, do you normally print and send or do you share the actual spreadsheet?

I'm just afraid to send the actual spreadsheet in case there are any problems that I cannot catch.

Unfortunately there is no shortcuts. Since real estate is a pretty tight knit community, I'd take with Brokers, appraisers etc. and ask if they recommend anyone in the area. I've found that sometimes a small firm is best and other times a larger firm is more advantageous.

In new markets that you are not very familiar with, what I like to do is do a rent survey and make a list of 10 or so properties that are comparable. Then, do some due diligence and research who manages the property. If there is a property that is managed by a particular firm and I think their strategy and positioning of the comp would work for our property than I'll go talk with them.

I like to focus on the strategy of the property management firm since some firms just cannot manage properties that fall outside of their niche.

I always try to separate primary inputs (independent variables) from the actual model so that they are easier to organize and find if your model continues to grow. For example, on the first sheet you will only enter primary inputs (ie. purchase price, vacancy, discount rate etc). Then the second sheet is the actual model (Discounted cash flow, etc). The third sheet might be a sensitivity analysis or case scenario. The forth sheet can then be a printable report or summary.

The primary inputs will drive everything from the DCF to the sensitivity etc. If you inputs are all over the place, you end up having to go from page to page searching for the inputs. Additionally, with complex models you will constantly be fine tuning and there is nothing worse than deleting a primary input b/c you forgot that an independent variable was embedded in the model.

Let me know if this doesn't make sense and I can look through some old spreadsheets and try to find an example.

D.

Hello,

I am in dire straights and need some advise/help from you veterans.

Here is the short version. I'm in contract on a mixed use building with 2 retail spaces & 7 residential units above. I'm putting up 25% equity and have an investor who is putting up 25% equity.

We had a commitment letter from a local bank for a 50% loan on the property, both of us were going to guarantee. The bank has informed me that they will be unable to fund the loan as they are experiencing extreme financial difficulties.

I have two and a half weeks to raise the additional 50% from other investors or to arrange for a new lender to fund the 50% or I lose a pretty substantial deposit that will kill me financially. The seller is not willing to give us an extension since we already got one. I have meetings set up for early this week with a couple potential investors and another local lender. They've asked me to send over a property packet with all the financials and property information before the meetings.

I do have some materials that I've created over the years and have a solid APOD but nothing that will impress anyone. I'm hoping some of you have some example packets & presentaitons that you can share with me and that I can use as a template? I want to present my investment as professionally as possible, especially with the new lenders since I have never worked with them before. I cannot drop the ball on this.

If anyone has a lot of experience creating good marketing packets and wants to earn some extra bucks or if anyone knows a good company that can help create offering packets please let me know. I need to have everything ready to go by this Tuesday.


Sincerely,

Jason