A National Homebuilder Builds Single-family Homes and Condominium-style Townhouses. The Excel File

I'm often asked to share models centered around residential development and dwelling house building. This is an area of existent estate I'm completely comfy in, since I spent the first 10 years of my career in new residential development.

Non surprisingly, I've assembled a decent size library of Excel pro formas for land developers and dwelling house builders over the years. Withal, besides many of those models are overly complex and in some cases downright messy. Then, a few years back I prepare out to build a robust, however easy-to-use Excel pro forma for dwelling builders to apace vet potential build opportunities and/or to quickly do a (residual) lot value calculation.

Since that time, various improvements take been fabricated to the model. Near recently, I congenital new module for assessing multiple home building projects. Every bit of v2.0 of the model, you lot'll find a 'Projects' tab where you can 'Add New Homes' to the analysis. It's still possible to use the model for standalone projects; simply apply one home. Or you can analyze multiple home structure projects out three years.

You might too similar my residential state development pro forma.

When to Employ the Single Family unit Home Construction Pro Forma

This pro forma is still meant to be a back-of-the-envelope model, although the functionality added in v2.0 of the model makes it more than comprehensive. So you might use this model when a lot (or multiple lots in a subdivision) buying opportunity comes upward, when moving into a new market, or just to refresh your numbers before the first of a new build.

The entirety of analysis for each home is built in i Excel worksheet (tab), while the aggregate analysis of multiple homes is shown on the 'Projection' tab. To assess more than ane home, simply click the 'Add New Dwelling' button on the 'Projection' tab and a new home structure analysis worksheet volition appear between the 'Domicile—>' and 'End' separator tabs.

When y'all open a fresh copy of the model, you'll immediately find v tabs along the lesser:

• Version – The version tab lists what'southward new in the model and provides helpful links to resources (such as this).
• Projection –  On this worksheet, you'll perform multi-dwelling house analysis. To add together homes to your analysis, simply click the bluish 'Add New Home' button. You can also name the Project and prepare the Analysis Start date on the Project tab.
• Home—> – This worksheet is a divider, together with the 'Stop' worksheet. Any Home Assay tab inserted between these ii dividers volition be included in the analysis shown on the 'Project' tab.
• Home #ane – This is where the bulk of your analysis volition exist performed. The model includes a dummy property with the tab labeled 'Domicile #1'. Feel free to modify the proper name of the tab (right-click the tab and click rename), and and then follow the directions below for completing the Home Construction Assay.
• End – This is the second divider tab inside which all homes included in the analysis are placed.

In addition to the above visible worksheets, at that place is one hidden worksheet. That worksheet is called 'Dwelling house Template' and it'south the template abode assay tab that is duplicated each time you click the 'Add New Dwelling' button. Basically, when you click to add a new dwelling house, the model duplicates the 'Home Template' worksheet, places information technology between the 'Habitation—>' and 'Stop' tab dividers, and asks you lot to rename the worksheet.

It'due south recommended that you leave the 'Home Template' worksheet hidden.

Components of the Single-Family unit Domicile Construction Pro Forma

As described higher up, when opening a fresh copy of the model y'all'll find a 'Home #i' tab. It's hither where all of the individual property assay is done. The name of the tab is meant to exist changed to the name of the home site you're analyzing. To modify the tab's name, hover your mouse cursor over the tab proper noun and correct click. Select 'Rename' and proper noun the tab whatever you wish.

The Single-Family Home Construction Pro Forma analysis tab includes eight sections plus a cash flow adding section. The viii sections are:

1. Summary – a debrief of the results of your inputs. This includes a projected profit and loss, the total projection length in days, the turn a profit margin (net turn a profit ÷ gross sales price), the full builder cash required (i.e. builder equity), and the total builder cash required less overhead.
2. Timing – where the user inputs a uncomplicated projection timeline. Here you volition include the project showtime appointment, the structure start twenty-four hours, the construction end day, and the day the domicile closes.
3. Domicile Description – information about the physical characteristics of the build. This includes the name of the neighborhood, the lot and cake, the lot size in square feet, the address with urban center and state, the name of the home plan, the size of the home, and the specifics of bed, bathroom, and garage.
4. Home Costs – a very simple project upkeep. In this section y'all'll build out your projection budget. The period (i.e. day) when each item starts and ends , and the duration of each is too calculated and shown here.
5. Dwelling Sale Pro Forma – a breakup of the gross sales price and a summary of the associated costs required to build the home. There is only one input in this section – the expected home sales price.
6. Sources and Uses – a list of the sources (due east.one thousand. debt, equity) and uses (e.g. land cost, hard costs, etc) for the projection. Here is where you'll determine the construction financing amount that you'll need to complete the projection.
7. Other Return Metrics – an unlevered and levered greenbacks period calculation, which allows the model to calculate unlevered and levered internal rate of return besides equally unlevered and levered equity multiple.
8. Data Validation – a data entry section, it is here where you'll list the nomenclature of the home type or stories driblet-down menu establish in the Project Description section.

In improver to the eight sections listed in a higher place. Cash flows by period (i.east. day) are shown on the correct-hand side of the model. The calculations are made on a per period ground, with each menstruation representing 1 twenty-four hours. The maximum number of periods is 1095 or in other words, the maximum project length is three years.

Watch the Video on How to Utilise the Home Construction Pro Forma (Pre-Version two)

I recorded a short video showing you how to utilize the model. The video is based on v1.0 of the model. This video is helpful for learning how to analyze an individual property. In one case you've finished watching this video, review the second video below on how to include additional homes, if necessary.

How to Utilise the New Home Construction Model – Version two and After

In mid-2020, I updated the model to clarify multiple homes as part of a large "Project". With this update I added a 'Projection' tab, which sums up the cash flows from the various abode construction projects. The tab then estimates the Source, Uses, Cash Flows, Pro Forma, and Returns of the combined homes. In this video, I discuss the differences and testify y'all how to navigate the diverse changes in version two.

Note that v2 is a major update, and therefore may comprise errors. Please let united states of america know if you spot annihilation needing fixed.

---

Download the Unmarried Family Habitation Construction Pro Forma

To brand this model accessible to everyone, it is offered on a"Pay What You're Able" basis with no minimum (enter $0 if you'd similar) or maximum (your back up helps keep the content coming – typical real estate Excel models sell for $100 – $300+ per license). Just enter a price together with an email address to ship the download link to, and so click 'Continue'. If yous take any questions nearly our "Pay What You're Able" plan or why nosotros offer our models on this basis, delight reach out to either Mike or Spencer.

We regularly update the model (see version notes). Paid contributors to the model receive a new download link via email each time the model is updated.

IMPORTANT (COMPATIBILITY): This model is ONLY compatible with versions of Excel newer than 2013. The file is an .XLSB (i.e. Excel Binary Workbook) and as such, if your version of Excel isn't uniform information technology volition announced equally if the file is a zipped/compressed file – Larn more than hither.

---

Version Notes

v2.iii

• Fixed effect where additional Homes added did non take 'Forecast Method' logic included
• Updated VBA code

v2.2

• Simplified forecast formulas to prepare for 'Forecast Method' logic
• Added the power to select a 'Forecast Method' for modeling cost line items (e.g. hard costs on an s-bend, soft costs straight-line)
  • Drop-downwards menu created in cells M42:M50 of Home worksheet (Straight-Line, South-Curve, Manual Input)
  • Updated formulas in rows 42:50 to model cash flows based on 'Forecast Method' input for each line item
• Misc. formatting and placeholder value enhancements

v2.one

• Fixed event with XIRR() formula on Project tab
• Fixed issue where levered cash flows were non accumulation correctly at Project level
• Moved 'Stories' input to cell E33, from G33

v2.0 (Major Update)

• Converted to a .XLSB file to amend speed and size
• Added ability to analyze a multi-habitation projection
  • Now includes 'Project', 'Homes–>', and 'Finish' worksheets
  • Duplicated previous 'Analysis' worksheet, renamed 'Dwelling house Template', and ready to be hidden
  • Analysis' tab renamed 'Home #i' to denote ability to add additional homes
  • Built 'Project' tab to whorl up greenbacks flows from all 'Homes' tabs placed between the 'Homes–->' and 'Cease' tab
  • Wrote macros to add Homes to the Projection
  • Inserted clickable shape on 'Project' tab and assigned the 'Add together New Home' macro to the shape
• Renamed heading labels to reflect 'Project' and 'Habitation' naming convention
• Changed tab color to differentiate betwixt 'Habitation' tabs, 'Project' tabs, and separator tabs
• Recorded video tutorial for using the new 'Project' feature
• All-encompassing formatting changes

v1.two

• Rename underwriting tab to 'Assay'
• Make 'Analysis' tab printable
• Added Data Validation to Timing Inputs
• Removed lite gray groundwork on Analysis tab
• Added Floor Plan + Lot/Block to header
• Linked lot closing date to construction get-go date by default
• Misc. formatting improvements

v1.i

• Added appointment header row to detailed cash flow section
• Set detailed cash flow section to 'show', by default
• Updated version tab with a link to the model tutorial, other similar models
• Simplified header row formula to avoid errors
• Added return metrics section
• Calculated unlevered and levered greenbacks menses by day
• Calculated unlevered and levered internal rate of return
• Calculated unlevered and levered equity multiple
• Misc formatting edits

v1.0

• Initial release

utzdaint1946.blogspot.com

Source: https://www.adventuresincre.com/new-sf-home-construction-pro-forma-excel/

Share this post