What is Financial Modelling?
Financial Modelling includes creating a detailed representation of the financial performance and viability, of a real estate project, focused on the building and operations of apartment complexes. This process typically includes the analysis of various financial aspects to aid decision-making and attract potential investors.
Who Benefits?
- You, the developer
- Your partners
- Your investors or potential investors
- Your financiers
- Your potential buyers
What Are The Key Benefits?
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First and foremost – does the project “pencil out?”
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Decision-making tool – helps attract potential investors
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Other considerations:
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Do returns meet partners or potential JV partners return objectives?
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Are you comfortable with the worst-case scenario?
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Have enough equity in the deal OR do you need more $$
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Determine your maximum borrowing power.
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