FIX EVERYTHING BUTTON - PART TWO
Welcome to this video. In this video, I will cover the rest of the features of the Fix Everything button in the ARGUS Excel Model. Let’s get into it.
Checking Holding Period
The button will check if the holding period cell is empty. Let’s delete the 5-year holding period and click on the button. The error message is saying that the holding period cell is empty. Click on the Input Holding Period button. I will type 5. Click Ok. Now the error message goes away. Click Okay to close the window.
Checking Close Date
Let’s delete the close date. Click on the FIX EVERYTHING button. The error message is saying that the close date cell is empty. Click on Input Close Date. Type October 1st, 2018. Click Ok. Now the error message goes away. Click Okay to close the window.
Checking Total Reserve
Let’s scroll down the total reserve cell. I sum up the 2 reserve items in the uses in this cell. I am going to delete it. Click on the FIX EVERYTHING button. The error message is saying that the total reserve cell is empty. Click the Go To Total Reserve Cell button. It takes me to the empty total reserve cell. If I do not have the reserve items in the uses, I would type in 0 as a placeholder. In this case, I will sum up the 2 reserve items. Click the FIX EVERYTHING button again. Everything looks good now.
Maximum Holding Period
Let’s extend the holding period to 20 years. The lease terms are about 5 years in the market leasing profile and there are 2 rollovers in the ARGUS Excel model so roughly a 10-year cash flow is modeled out, which is less than the holding period. This creates a conflict. I want to model a 20-year holding but the cash flow spans only 10 years. Click on the FIX EVERYTHING button. The error message is saying that the period of the rent roll is shorter than the holding period. The easy way to fix this is to click on the Correct the Holding Period button to automatically shorten the holding period or go back to the market leasing profile to make the lease term longer. I am going to click the button this time. It seems like that the extended holding period creates a new error but I am going to ignore it as I am focusing the holding period. Close the window. I can see the holding period is automatically shortened to 10 years, which is the maximum holding period the current cash flow can support. I am going to change it back to 5 years.
Let’s go through the last type of error. The FIX EVERYTHING button checks if the uses equal the sources in the ARGUS excel model. Let’s add 100 dollars to the HC Capital’s equity. Then click the FIX EVERYTHING button. The error message is saying that the total uses and the total sources do not match. Click the Go To Uses and Sources button. The whole Sources and Uses section is highlighted. I will delete the 100 dollars to fix this problem. I finish going through all the features of FIX EVERYTHING button.
Thanks for watching this video. I will see you in the next one.