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ProCash, an Economic Model for Income Properties

Construction Financing:More Complicated

The input array CSF allows for specifying as many sources of financing as desired (each row of CSF is a different financing instrument). Since all inputs are optional, the user may simply enter two columns of CSF with the loan ceiling and interest rate for each credit line, and the model will draw from each until it is exhausted, and then it will draw from the next. Repayment will be "last drawn down/first repaid" unless specified otherwise. The inputs allow for greater complexity if needed.

More elaborate construction financing can be specified by use of the input array CSF. Each row of this special input matrix corresponds to a different loan. They are taken in succession, so that borrowing requirements are met to the extent possible first by the first row of CSF. Obviously, the last loan inputed through CSF may not be fully drawn down if not required by the project. The columns of CSF provide for specifying input assumptions for each loan:

Another input called CSFLIMIT allows a detailed specification of how much can be drawn against in each period on each line of credit if desired.

CSF[;2]Const.fin.terms: Interest rate 542  4
CSF[;3]Const.fin.terms: Source of fin. (which entity) 542  4
CSF[;1]Const.fin.terms: Loan ceiling 542  3
CSF[;11]Const.fin.terms: Account(s) which cannot be drawn on 542  3
CSF[;7]Const.fin.terms: Repayment terms 542  2
CSF[;9]Const.fin.terms: Repay method 542  2
CSF[;10]Const.fin.terms: Accrue interest (default=pay currently) 542  2
CSF[;15]Const.fin.terms: Sequence of draws & repayments 542  2
CSF[;4]Const.fin.terms: When financing available 542  1
CSF[;5]Const.fin.terms: When fin. must be fully repaid 542  1
CSF[;6]Const.fin.terms: Holdback decimal 542  1
CSF[;8]Const.fin.terms: Draw/repayment rounding factor 542  1
CSF[;12]Const.fin.terms: Starting interest balance 542  1
CSF[;13]Const.fin.terms: Starting principal balance 542  1
CSF[;14]Const.fin.terms: Period/date to start calc. interest 542  1
CSF[;16]Const.fin.terms: Capitalize interest (0=expense 100%) 542  1
AVI[34]Holdback:pct.costs withhold before takeout AVI[36] 542  
AVI[35]Holdback:front money $ or pct. of perm mtge amt 542  
AVI[36]Holdback:continuing holdback pct.of current costs 542  
HLDBK Input:Holdback terms 542  
AVI[153]1st column of is account code 542  
AVI[169]Construction interest capitalized (0 means expense 100%) 542  
AVI[178] Structure:5 if method 1,11 if method 2,other if 3 542  
AVI[184]Construction loan balance as of cost to date 542  
CSFLIMIT Input:Limits on construction financing draws 542  
MV[79]New model for calculating interest ° 542  

viewtypecase studyviewfile sizecomplexityhelp#comment
InputsExecutive Plaza (Under Const., office)(construction financing) 3059 20 542 
Belle Glade 72 Units Deal A(construction financing) 3193 45 542 
ABCO Joint Venture (office)(construction financing) 3406 69 542 

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