Fix Everythig Button - Part One
Welcome to this video. In this video, I will cover the Fix Everything button in the ARGUS Portfolio Model. The Fix Everything button is one of the most powerful features in the ARGUS Portfolio Model. I highly recommend clicking on this button before checking out the final underwriting results.
Let’s go to the Annual Cash Flow tab first. I can see that the cash flow is negative in year 9 because of a huge amount of tenant improvements and leasing commissions. The FIX EVERYTHING button is supposed to detect this negative cash flow. Going back to the Input tab. I click on the FIX EVERYTHING button. This button does three things. First, fully recalculate the ARGUS Portfolio Model. Second, fix all circular references in the model. Third, check on the five critical errors in the model.
Every time the FIX EVERYTHING button is clicked; a full calculation is triggered automatically. This calculation is different than a regular calculation by hitting F9 in Excel. A full calculation checks every link and formula in the model and redoes the calculation in them. This is particularly important because there are thousands of rows in the ARGUS Portfolio model and a regular excel calculation will not do the trick. The circular references are also fixed automatically when the FIX EVERYTHING button is clicked. A circular reference is fixed by turning on and off a circular break. There are plenty of materials online covering this topic. I will leave a link for one of the resources below (https://www.ablebits.com/office-addins-blog/2015/12/15/circular-reference-excel/) It is saying that there are negative cash flows in the forecast. It has successfully detected the negative cash flow in year 9. I will click the Calculate Future Reserve Deposits. The system is doing the work for me. Now everything looks good. I will click Okay.
Now I am going to show you all the things that are checked by this button. This snapshot shows all the critical errors. They are calculating future reserve deposits, checking if the close date assumption is empty, checking if the total reserve cell is empty, and at last, checking if the uses equal the sources. These assumptions are essential for underwriting, so I am going to take a look at how the FIX EVERYTHING button checks them and helps the user to fix them if they are incorrect.
Thanks for watching this video. I will cover the rest of the features of the FIX Everything button in the next video.