Basic Information Section
Welcome to this video. After the overview of Argus Multi-Family model video. We will go through the model section by section. In this video, we will cover the basic model information section on the top left of input tab.
Before we jump in to it, I would like to introduce the overall structure of the model. As a regular user, I only need to input my assumptions in the input tab，unit mix tab and uses and sources tab. In very rare cases, I might hardcode something into other tabs.
Let’s go back to the basic model information section. We see close dates, holding period, and deal name in this section. The first two are mandatory inputs and the last one is optional input. What we mean by mandatory is the input is required in order for the model to work properly. And optional means the input is information-based. In other words, it is nice to have it because it shows more information to someone looking at your model. Some might argue that deal name is essential to every investment. That is true but we are talking about what is essential to the model calculation here. I will input ABC as the deal name. However, the deal name is not involved in any calculation in the model, so it is defined as optional.
On the other hand, close date is mandatory input. I type in October 1st 2023. Basically, this is the date you plan to buy the assets and complete the transaction. We click on the monthly CF summary tab. We can see the first date shows up is October 2023. This date is also the start date of our projection.
Now we are going to cover one of the most important inputs in the model – holding period. The model is designed to have a maximum holding period of 20 years. If I try to input a number outside that range, Excel will prompt me to type in a valid number. Actually, how further into the future I define my unit mix assumptions will also put a cap on the holding period. I will save this topic when we cover the FIX EVERTHING button as the button will tell me if I exceed that cap. There are quite a few things that change with this holding period parameter. Let’s put 5 years here and go to the annual cash flow tab. We can see 5 columns are nicely laid out here. If I go back to change the holding period to 10 years, we can see the number of visible columns become 10. We can see this kind of automatic column adjustment throughout the model.
This is all for this video, thank you for watching.