Build It Together | Amortization Schedule Table

In this free “build it together” tutorial from Real Estate Financial Modeling, you will learn the collection of technical skills and best practices for modeling a senior mortgage loan with a high degree of scenario flexibility.

With assumptions provided for you, you will be guided through the programming of individual amortization schedule columns including:

• Fixed and Floating Rates: 30/360, Actual/360, 365/365
• Amortization Period
• Beginning Balance
• Interest
• Principal
• Repayment from Permanent Loan
• Repayment from Residential Component Sale
• Repayment from Retail Component Sale
• Repayment from Shortfall Draws (Equity)
• Ending Balance.

• base variable rate and fixed spread
• three alternate bases of interest calculation
• interest-only period integration
• repayment from multiple sources
• repayment shortfall funding from equity.

This is a hands-on-the-keyboard course. You will watch the video and pause it to complete exercises in the associated Excel.

Our approach to help you learn most efficiently is to not force you to build the model from scratch. Rather, we provide you with a pre-formatted, pre-labeled model “skeleton” so that you can focus on learning the business underpinnings of the formulas that you will be writing, and the formula mechanics themselves. Real estate is a business, and the business models, analytical conventions and operating realities must be understood intimately so they can manifest correctly in the Excel-based logic statements and calculations.

Our teaching and learning format not only allows you to learn more deeply, but also allows you to do so 20% faster than if you were to start from a blank worksheet.

You are of course welcome to re-build the spreadsheet from scratch at any time, but in the interest of getting you to learn quickly in your limited study time, we choose to give you the skeleton and teach from that point of progress forward.

Rest assured that you will work very hard in this course programming dozens of lines to fully populate the model skeleton, and you will learn a tremendous amount about real estate and financial modeling in the process.

The video running time is 49 minutes. Watching the video and replaying parts where desired and completing the exercises will take approximately 1 to 3 hours, depending on the individual.

Upon successful completion of this course, you will:

• Have gained a holistic understanding of the elements of an amortization schedule
• Be able to model periodic loan payments and balloon repayment for multiple interest rate and capital event types
• Be confident in your ability to compare loan options through use of the tool.