All-in-One SBA & Joint Venture Real Estate Underwriting Model

Video Overview:

If you like quick underwriting with most of the inputs all in a single spot and the waterfall on its own tab as well as clear cash flow organization, this template will fit your needs. One of the main uses of this tool is to model the purchase of a business and the real estate it operates in.

1. Straightforward Financial Inputs for NOI

   • Feature: The template only requires basic data points—gross revenues, salaries, wages, and other expenses—to calculate Net Operating Income (NOI). You can choose to enter yearly expenses as fixed amounts or use an expense ratio.
   • Why It’s Useful: By focusing on just a handful of critical inputs, you save time and simplify your workflow, avoiding the clutter and complexity of large multi-tab spreadsheets. It also reduces the likelihood of errors from overly detailed entry requirements.

2. Flexibility in Modeling & Refinancing

   • Feature: You can project cash flows for up to 10 years and choose from different financing structures (SBA 504 for real estate, SBA 7(a) for the business portion, or replace the 504 with a conventional/assumed loan). A built-in option to refinance in a future year allows you to restructure all existing debt simultaneously.
   • Why It’s Useful: This flexibility accommodates a variety of real estate and business purchase scenarios, making the tool adaptable for different deal structures or investment strategies. The option to refinance provides a realistic approach to long-term planning and portfolio management.

3. Minimal Tabs for Quick Underwriting

   • Feature: The template is laid out with only the essential tabs, focusing on the major assumptions and outcomes rather than every possible detail.
   • Why It’s Useful: Underwriters and investors can quickly see the most important metrics, speeding up the due diligence process. This clarity helps keep your attention on what truly impacts the deal rather than getting stuck in spreadsheet complexity.

4. Preferred Return Waterfall

   • Feature: The model includes a configurable return waterfall that can accommodate different distribution structures, catering to various GP/LP agreements and investor preferences.
   • Why It’s Useful: Waterfall structures can become complicated quickly. Having a built-in, easy-to-adjust framework saves time and ensures accuracy. It also helps stakeholders clearly understand how proceeds are allocated among investors.

5. Sources and Uses Summary (with Reserve Calculation)

   • Feature: A dedicated summary tab clarifies the total project costs, how much is needed (sources), where the funds will be allocated (uses), and determines appropriate reserves.
   • Why It’s Useful: Staying on top of your capital requirements and cost allocations is crucial. A concise sources and uses overview supports clear communication with lenders, investors, and partners. Automatically solving for reserve requirements adds another layer of risk mitigation.

6. Robust Output Metrics

   • Feature: The model presents key performance metrics such as LP/GP IRR, Equity Multiple, DCF (Discounted Cash Flow) analysis, and Debt Service Coverage Ratio (DSCR).
   • Why It’s Useful: These industry-standard measures help investors and lenders compare the project’s performance to benchmarks and assess viability. Having them calculated automatically ensures consistency and saves time.

7. Eight Built-In Visualizations

   • Feature: The template generates visual charts and graphs to illustrate trends, cash flows, and returns over time.
   • Why It’s Useful: Visual aids make it easier to grasp large sets of data, which helps you and other stakeholders communicate insights more effectively—whether in presentations or internal reviews.

8. Fully Unlocked & Editable

   • Feature: The spreadsheet is not password-protected, so you can modify formulas, layouts, or formats as needed.
   • Why It’s Useful: Every deal is unique, and the ability to customize the model ensures it remains relevant across different projects and investor requirements. You’re not locked into a rigid template and can adapt it as needed.

Overall, these features make the template a one-stop solution for streamlined underwriting and scenario analysis—providing the essential outputs, offering flexibility in deal structuring, and reducing the time spent on building (and troubleshooting) complex models.