Sensitivity Analysis - What-If Scenarios In Real Estate Financial Modeling

Sensitivity Analysis - What-If Scenarios In Real Estate Financial Modeling // In real estate financial modeling, when you're analyzing a deal, your assumptions aren't always going to be 100% correct. A sensitivity analysis can give you a what-if scenario analysis that can test what happens to your real estate investment return metrics if your exit cap rises, or your rent growth slows, or any other manual input in your model is changed. But how do you actually build this in Excel? In this video, we'll build a real estate sensitivity analysis from scratch so you can analyze multiple scenarios for your next real estate deal.

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[brianaskey]

Do you have the excel example available for download?

[g]

I have this annoying issue where every time I include a sensitivity analysis, the numbers keep changing in Excel. So I go to the formulas tab and click on "calculate sheet". It works after a few iterations but when I click on an empty cell, the numbers change again. How can I fix this issue?

[lardon.]

Hey, I'm having the same issue of the data displaying the same figure, despite automatic calculations being on incl data tables. Would you be able to upload the file again?

[moh.basloom]

How I can fix of the issue if the input cells are not originally from the same sheet of the data table, For example If I want to show the result in Cash Flow sheet not assumption sheet

[margaritakyriakou]

Hi Justin....i press the button F9 but i dont have any changes on my table. Can you please help?...thank you

[johnadair]

Justin, I really get a lot out of your videos, but it would be helpful if you had a spreadsheet that we could download with them. I have to build a spreadsheet each time, which is fine. It's just that sometimes I have a good bit of trouble figuring out the formulas. Or, if you just would actually click in the cells with a formula and simply take a few seconds to point out where you got the calculations. It doesn't need to be a lot of detail. For example, just take a few seconds and say (after clicking in cell B16), "To get the Unlevered IRR, use the XIRR function, and you see the values are in cell E15:O15, and the dates are in E2:O2." Then move on the next unique formula. That's maybe 12-15 seconds per formula. You only have 11 unique formulas. So that's just 2-3 extra minutes. It's just a suggestion. Thanks again for these great videos.

[anukritlamichhane]

Hi Justin, I was wondering: how may we adjust the sensitivity for holding periods? I am having trouble making my model dynamic enough to have the exit date as a dynamic variable. Right now I have to manually adjust the entire model's cash flows to the specific date I want but I feel like there is an easier method where I can simply change the exit date and have the entire model update accordingly.

Thanks in advance!

[duncantwyman]

Hey Justin, which one of your courses covers sensitivity modeling? I am trying to buy this course on Udemy

[ksmksy]

Hi, thanks for the video. Is there any way we could set up a blended sensi table for two or more assets?

[mullehetz]

I tried to create a sensitivity analysis similar to this to determine the XIRR, using the interest rate and entrance cap rate as the variables. Once I put the entrance cap and interest rate as my row and column input respectively, the output calculates the correct XIRR output for ONLY the entrance cap, however the interest rate area of the data table does not change at all as the interest rate input increase. What am I doing wrong?


The column and row of the data is all hardcoded, and my interest rate and entrance cap are both tied to a "dynamic part" of my model. I have pressed F9 repeatedly and saved the spreadsheet.

[nayefalomar]

Hello Justin,

I've tried to do the same on my financial model but yet all values show the same values I hit F9 tho but when I downloaded your model it worked. Is there any condition to make it work?

thanks in advance Justin

[alkadhy]

Hi Justin, thanks for your videos, they are very helpful.
Is it possible to do sensitive analysis for occupancy that is changing every year by different levels. For example in year 1 you have 30% occupancy and in year 2 you have 40% and in year 3 you have 55% occupancy?
Thanks in advance

[johnadair]

When I hit F9, it didn't do anything. All of my values are 7.72%. I have Office 365.

[AB-srhf]

hello, unable to access the downloadable template unfortunately @BreakIntoCRE. Any idea where I may download it? Thank you so much in advance