I'm currently a credit analyst at a commercial bank that doesn't forecast cash flow (insane right) and I haven't had a lot of real world modeling outside of basic stress testing and DSCR tests. Going into year 2 and realizing I want to be in an acquisitions role, specifically for commercial real estate, possibly residential (multi family), I began interviewing at multiple CRE firms. Every single one of them balked when I said I didn't have LBO or DCF experience :( This series has taught me so much more than I ever could have expected a UA-cam series could and I truly believe anyone who goes through with this course will kick ass in any financial modeling role that comes their way. Thanks Joshua. If I get an offer, I owe you a few drinks.
Hi Josh, Great Videos! I have a question on how to model for future debt in the middle of your project. Say you are doing a long term 20 year hold on commercial retail property. In year 12, you undergo a $600k CAPEX project. You take out a promissory 10 year note at 3.75% interest of $600k to fund this project. On your cash flow model, should you show the $600k as income at first in month 1 and then show the $600k expenses in the various CAPEX GL accounts (example, $200k of that goes to a new roof, another $200k goes to remodeling outside of building, and another $200k goes to electric, paint, etc....) FOLLOWED by the monthly payments of $6004? Or should you only be showing the monthly $6004 payment in the same way you are showing the principal & interest expense as the mortgage debt? It seems like if I do it the first way I'm double dipping the expenses... does that make sense?
I appreciate your content and you channel. However, I would suggest you don't make formulas change every minute. I would think it's much easier to follow if you just build it properly the first time. That way it's easier to understand the formula, rather than going back with little changes
Nope. It’s an organic process. While I hear what you’re saying, I think it’s good for people to see the evolution of how to work through a problem. Building a financial model has more in common with a creative act such as painting. I don’t want to just take a photo of a painting and hang it on a wall. I want people to learn how paint.
I'm currently a credit analyst at a commercial bank that doesn't forecast cash flow (insane right) and I haven't had a lot of real world modeling outside of basic stress testing and DSCR tests.
Going into year 2 and realizing I want to be in an acquisitions role, specifically for commercial real estate, possibly residential (multi family), I began interviewing at multiple CRE firms. Every single one of them balked when I said I didn't have LBO or DCF experience :(
This series has taught me so much more than I ever could have expected a UA-cam series could and I truly believe anyone who goes through with this course will kick ass in any financial modeling role that comes their way.
Thanks Joshua. If I get an offer, I owe you a few drinks.
Thank you. Single malt Scotch, 12 year. Good luck. :)
you are by far a way better teach than any of my college professors ever were
Thank you. I appreciate that.
this is amazing! its so easy to follow. your a great teacher!!!
Thank you very much. I appreciate it.
mind blown, loving this series though :)
This would render the Op Ex on the assumptions page unnecessary, right?
These videos are great - thank you!
Glad you think so. Appreciate the note.
To download the Excel file I used in this video, go to: www.kahrrealestate.com/free-stuff/
i appreciate your work!
Thank you. And I appreciate your comment. :)
Hi Josh,
Great Videos! I have a question on how to model for future debt in the middle of your project. Say you are doing a long term 20 year hold on commercial retail property. In year 12, you undergo a $600k CAPEX project. You take out a promissory 10 year note at 3.75% interest of $600k to fund this project. On your cash flow model, should you show the $600k as income at first in month 1 and then show the $600k expenses in the various CAPEX GL accounts (example, $200k of that goes to a new roof, another $200k goes to remodeling outside of building, and another $200k goes to electric, paint, etc....) FOLLOWED by the monthly payments of $6004? Or should you only be showing the monthly $6004 payment in the same way you are showing the principal & interest expense as the mortgage debt? It seems like if I do it the first way I'm double dipping the expenses... does that make sense?
Thanks you!!
WOW
what if it is monthly cash flow and prop taxes are paid once a year?
Run the model on a monthly basis. Then use a function like a SUMIF to roll up the months into years.
I appreciate your content and you channel. However, I would suggest you don't make formulas change every minute. I would think it's much easier to follow if you just build it properly the first time. That way it's easier to understand the formula, rather than going back with little changes
Nope. It’s an organic process. While I hear what you’re saying, I think it’s good for people to see the evolution of how to work through a problem. Building a financial model has more in common with a creative act such as painting. I don’t want to just take a photo of a painting and hang it on a wall. I want people to learn how paint.