Getting a working model developed is critical to the decision-making process during the planning stages of a real estate project. Financial models are used by the developer and owner for initial determination of financial feasibility. As the model is fine-tuned, lenders and tax credit investors can use it to develop pricing for their tax credit investments. A basic version of the model works well for some circumstances but often an expanded version is needed that includes additional schedules.
The process usually includes:
- Meeting with key personnel to determine project scope and goals
- Gathering documents and cost information
- Constructing the initial model
- Revising the model
- Finalizing the version