New Housing Development or Condos: 10 Year Real Estate Financial Model

 The financial analysis of a new housing development involves assessing the costs and potential returns associated with the project. It includes evaluating factors such as land acquisition, construction costs, financing options, projected sales, and operating expenses. By conducting a comprehensive financial analysis, developers can make informed decisions about the feasibility and profitability of the housing development before proceeding with the project. You get a detailed and ready-to-work template out of the box with this file.

$45.00 USD - Build to Sell Version

$45.00 USD - Build to Rent Version

After purchase, the financial model template will be directly available to download. It comes with a blank version and a filled in version. It is also included in this real estate template bundle as well as the construction spreadsheets bundle.

Build to Sell Screen Shots

Build to Rent Template Overview:

Build to Rent Screen Shots

new housing development

Template Features:

  • Update: On the build to sell version, I've added an IRR sensitivity table.
  • Update: On the build to sell version, I've added an option to have interest reserve be required or not (yes/no selector). If it is, then the user can select the amount of months the interest reserve must account for (paid up front). If no interest reserve is required, then interest will just hit cash flow each month as it is incurred. This is all of course if debt is utilized.
  • Use for up to a ten-year period (monthly and annual views).
  • Great for build and sell developers.
  • Up to ten unit types can be configured (with arbitrarily large quantities of units)
  • For each unit type, define count of units started per month and count of units sold per month (two rows for each)
  • Includes two joint venture options if you are raising money from investors.
  • Robust set of configurable GP fees.
  • Easily define high level assumptions on the Global tab and see how it effects final return on investment metrics.
  • Output summary includes IRR, NPV, ROI, Equity Multiple, and more for GP, LP, and the overall project.
  • Granular cost schedule to define the various costs for each unit type in detail.
  • Separate cost schedule for ongoing costs not directly related to building the units (land acquisition, architecture fees, property taxes, and more). There are plenty of slots to account for any size deal.
I have put many years into building real estate models for all sorts of clients. This specific template took me about five hours to build, but years of learning and experience to even know where to start. For the cash flow waterfalls, I used the preferred return model and IRR hurdle model as starting points. All the other assumptions and summaries were built from scratch.

There were all kinds of decisions that I had to make in order to build the best template that would help actual real estate developers. One of the primary areas of focus was to make it easy to manually enter data if needed. The user will have smart assumptions, but if they just want to plug in their actual data into high level areas, that can work without much trouble. This is especially true for the debt draw, draw amount, timing of the draws, timing of the repayment, and total development costs per month vs. total financed amount per month.

When considering the logical flow of finance for a new housing development project, there are unique aspects that never have come up in other models. This is one of the big reasons why I wanted to create something in this industry. Most of the other real estate models are build / acquire and then rent for years before selling. This is specifically built to build and then sell with no rental period at all.

Note, the download includes a blank version and a version of the template that is filled out with the data you see in the video.

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