3:I[5613,[],""]
5:I[1778,[],""]
4:["slug","commercial-real-estate-financing-financial-model-example","d"]
0:["B1ezAHU6N5k79QgSZtZFB",[[["",{"children":["industries",{"children":["real-estate",{"children":[["slug","commercial-real-estate-financing-financial-model-example","d"],{"children":["__PAGE__?{\"slug\":\"commercial-real-estate-financing-financial-model-example\"}",{}]}]}]}]},"$undefined","$undefined",true],["",{"children":["industries",{"children":["real-estate",{"children":[["slug","commercial-real-estate-financing-financial-model-example","d"],{"children":["__PAGE__",{},["$L1","$L2",null]]},["$","$L3",null,{"parallelRouterKey":"children","segmentPath":["children","industries","children","real-estate","children","$4","children"],"loading":"$undefined","loadingStyles":"$undefined","loadingScripts":"$undefined","hasLoading":false,"error":"$undefined","errorStyles":"$undefined","errorScripts":"$undefined","template":["$","$L5",null,{}],"templateStyles":"$undefined","templateScripts":"$undefined","notFound":"$undefined","notFoundStyles":"$undefined","styles":[["$","link","0",{"rel":"stylesheet","href":"/_next/static/css/dd3786e789bd89d0.css","precedence":"next","crossOrigin":""}]]}]]},["$","$L3",null,{"parallelRouterKey":"children","segmentPath":["children","industries","children","real-estate","children"],"loading":"$undefined","loadingStyles":"$undefined","loadingScripts":"$undefined","hasLoading":false,"error":"$undefined","errorStyles":"$undefined","errorScripts":"$undefined","template":["$","$L5",null,{}],"templateStyles":"$undefined","templateScripts":"$undefined","notFound":"$undefined","notFoundStyles":"$undefined","styles":null}]]},["$","$L3",null,{"parallelRouterKey":"children","segmentPath":["children","industries","children"],"loading":"$undefined","loadingStyles":"$undefined","loadingScripts":"$undefined","hasLoading":false,"error":"$undefined","errorStyles":"$undefined","errorScripts":"$undefined","template":["$","$L5",null,{}],"templateStyles":"$undefined","templateScripts":"$undefined","notFound":"$undefined","notFoundStyles":"$undefined","styles":null}]]},[null,["$","html",null,{"lang":"en","children":[["$","head",null,{"children":[["$","meta",null,{"name":"robots","content":"index, follow, max-image-preview:large, max-snippet:-1, max-video-preview:-1"}],["$","link",null,{"rel":"icon","href":"/images/website-icon.svg"}]]}],["$","body",null,{"itemScope":true,"itemType":"https://schema.org/SoftwareApplication","className":"b1","children":[["$","meta",null,{"itemProp":"applicationCategory","content":"Business Planning Service"}],["$","$L3",null,{"parallelRouterKey":"children","segmentPath":["children"],"loading":"$undefined","loadingStyles":"$undefined","loadingScripts":"$undefined","hasLoading":false,"error":"$undefined","errorStyles":"$undefined","errorScripts":"$undefined","template":["$","$L5",null,{}],"templateStyles":"$undefined","templateScripts":"$undefined","notFound":[["$","title",null,{"children":"404: This page could not be found."}],["$","div",null,{"style":{"fontFamily":"system-ui,\"Segoe UI\",Roboto,Helvetica,Arial,sans-serif,\"Apple Color Emoji\",\"Segoe UI Emoji\"","height":"100vh","textAlign":"center","display":"flex","flexDirection":"column","alignItems":"center","justifyContent":"center"},"children":["$","div",null,{"children":[["$","style",null,{"dangerouslySetInnerHTML":{"__html":"body{color:#000;background:#fff;margin:0}.next-error-h1{border-right:1px solid rgba(0,0,0,.3)}@media (prefers-color-scheme:dark){body{color:#fff;background:#000}.next-error-h1{border-right:1px solid rgba(255,255,255,.3)}}"}}],["$","h1",null,{"className":"next-error-h1","style":{"display":"inline-block","margin":"0 20px 0 0","padding":"0 23px 0 0","fontSize":24,"fontWeight":500,"verticalAlign":"top","lineHeight":"49px"},"children":"404"}],["$","div",null,{"style":{"display":"inline-block"},"children":["$","h2",null,{"style":{"fontSize":14,"fontWeight":400,"lineHeight":"49px","margin":0},"children":"This page could not be found."}]}]]}]}]],"notFoundStyles":[],"styles":null}]]}]]}],null]],[[["$","link","0",{"rel":"stylesheet","href":"/_next/static/css/5ad7baf19918e3f0.css","precedence":"next","crossOrigin":""}]],"$L6"]]]]
7:I[4699,["6081","static/chunks/6081-34deb2fa2ebb58a3.js?v1740148189000","3842","static/chunks/3842-90ad98b73050a768.js?v1740148189000","6142","static/chunks/6142-d09ed4195d118873.js?v1740148189000","1635","static/chunks/app/industries/real-estate/%5Bslug%5D/page-99f2a15ec0ff839e.js?v1740148189000"],""]
8:T2eb0,{"id":"cG9zdDo4MTU4","title":"Commercial Real Estate Financing Financial Model Example","content":"<p>Our Commercial Real Estate Financing Financial Model Structure covers all the essential aspects you need to consider when starting or scaling a Commercial Real Estate Financing business. By following this structure, you can better understand your revenue streams, costs, and assets, helping you optimize profitability and strategically plan for growth.</p>\n<h2>The Commercial Real Estate Financing Financial Model Structure</h2>\n<p>Financial planning for a Commercial Real Estate Financing business is a crucial exercise that ensures the effective allocation of resources and the achievement of business objectives. By constructing a well-defined Commercial Real Estate Financing financial model, businesses can anticipate revenues, manage costs, streamline operations, and gauge potential profitability. Such models also unlock new and profitable revenue streams that entrepreneurs may not have initially considered. A strategic financial model includes a comprehensive understanding of revenue streams, cost of goods sold, necessary personnel, operating expenses, required assets, and potential funding options.</p>\n<p>A Commercial Real Estate Financing financial model outlines the typical revenues, direct costs, employees, expenses, and assets required when starting or expanding a business in this sector. Not only does it help in navigating the financial landscape, but it also presents opportunities for uncovering unexplored revenue streams.</p>\n<h3>Revenues</h3>\n<ul>\n<li><strong>Interest Income:</strong> Calculated as the interest rate multiplied by the outstanding loan amount.</li>\n<li><strong>Origination Fees:</strong> A percentage of the loan amount charged at the initiation of the loan.</li>\n<li><strong>Servicing Fees:</strong> Recurring fees for administering the loan, calculated as a percentage of outstanding loan amount or a flat fee.</li>\n<li><strong>Referral Fees:</strong> Income from referring clients to other financial services, calculated as a percentage of the referred business.</li>\n<li><strong>Underwriting Fees:</strong> Fees for evaluating the risk of a client, usually a flat rate or a percentage of the loan.</li>\n<li><strong>Consultancy Services:</strong> Income from advisory services, based on hourly rates or project-based pricing.</li>\n<li><strong>Late Payment Charges:</strong> Fees charged for late payments, calculated as a flat fee or a percentage of the delayed amount.</li>\n<li><strong>Investment Income:</strong> Earnings from investments made by the business, such as from real estate properties or securities.</li>\n</ul>\n<h3>Cost of goods sold</h3>\n<ul>\n<li><strong>Interest Expenses:</strong> Costs incurred from borrowing funds to lend to clients.</li>\n<li><strong>Loan Servicing Costs:</strong> Expenses related to managing and maintaining loans.</li>\n<li><strong>Underwriting Expenses:</strong> Costs associated with evaluating potential borrowers.</li>\n<li><strong>Referral Payouts:</strong> Payments given to third parties for client referrals.</li>\n<li><strong>Consultancy Fees:</strong> Costs paid to external advisors or consultants.</li>\n</ul>\n<h3>Employees</h3>\n<ul>\n<li><strong>Loan Officers:</strong> Responsible for loan origination and client relationship management.</li>\n<li><strong>Underwriters:</strong> Evaluate loan applications and assess risk.</li>\n<li><strong>Compliance Officers:</strong> Ensure the company adheres to legal and regulatory requirements.</li>\n<li><strong>Financial Analysts:</strong> Conduct financial modeling and analysis.</li>\n<li><strong>Accountants:</strong> Manage financial records and prepare financial statements.</li>\n<li><strong>Administrative Staff:</strong> Handle office tasks and support senior staff.</li>\n</ul>\n<h3>Operating expenses</h3>\n<ul>\n<li><strong>Rent:</strong> Cost for office space lease.</li>\n<li><strong>Salaries and Wages:</strong> Compensation for all employees.</li>\n<li><strong>Utilities:</strong> Electricity, water, and other utility costs.</li>\n<li><strong>Training and Development:</strong> Budget for employee training programs.</li>\n<li><strong>Marketing Expenses:</strong> Costs for advertising and promotional activities.</li>\n<li><strong>Technology and Software:</strong> Costs related to software and hardware necessary for operations.</li>\n<li><strong>Legal &amp; Professional Fees:</strong> Fees for legal, consulting, and audit services.</li>\n<li><strong>Office Supplies:</strong> Expenses for necessary office amenities.</li>\n<li><strong>Insurance:</strong> Policies protecting business assets and liabilities.</li>\n<li><strong>Travel and Entertainment:</strong> Costs for business travel and client entertainment.</li>\n</ul>\n<h3>Assets</h3>\n<ul>\n<li><strong>Office Equipment:</strong> Desks, computers, and furniture required for daily operations.</li>\n<li><strong>Software Systems:</strong> Loan management and customer relationship management software.</li>\n<li><strong>Real Estate:</strong> Properties owned for business operation or investment.</li>\n<li><strong>Vehicle Fleet:</strong> Cars used for client meetings and business travel.</li>\n<li><strong>Financial Instruments:</strong> Investments in securities or partnerships.</li>\n</ul>\n<h3>Funding options</h3>\n<ul>\n<li><strong>Bank Loans:</strong> Traditional financing from banking institutions.</li>\n<li><strong>Private Equity:</strong> Fundraising from private investors or venture capitalists.</li>\n<li><strong>Angel Investors:</strong> Individual investors providing capital at the start-up phase.</li>\n<li><strong>Lines of Credit:</strong> Credit facilities from financial institutions providing short-term funds.</li>\n<li><strong>Government Grants:</strong> Available funding from governmental bodies.</li>\n</ul>\n<h2>Driver-based financial model for Commercial Real Estate Financing</h2>\n<p>A driver-based financial model for Commercial Real Estate Financing is essential. A truly professional model is based on <a href=\"https://blog.falcony.io/en/10-most-common-kpis-in-commercial-real-estate#:~:text=In%20commercial%20real%20estate%20(CRE,optimize%20operations%2C%20and%20drive%20profitability.\">operating KPIs</a> (known as &#8220;drivers&#8221;) that are relevant to the business. These KPIs provide insight into the most impactful elements of the business operations and are crucial in building a robust financial plan.</p>\n<ul>\n<li><strong>Loan Approval Rate:</strong> The percentage of loan applications approved.</li>\n<li><strong>Average Loan Size:</strong> The mean amount of money loaned to clients.</li>\n<li><strong>Loan Repayment Rate:</strong> The percentage of loans repaid on time.</li>\n<li><strong>Client Acquisition Cost:</strong> The cost associated with acquiring a new client.</li>\n<li><strong>Delinquency Rate:</strong> The percentage of loans with delayed payments.</li>\n<li><strong>Net Interest Margin:</strong> Difference between interest income and expenses.</li>\n<li><strong>Employee Productivity:</strong> The amount of revenue generated per employee.</li>\n<li><strong>Customer Satisfaction Score:</strong> Assessed through client feedback and surveys.</li>\n<li><strong>Operating Margin:</strong> The percentage of revenue left after covering operating expenses.</li>\n<li><strong>Return on Assets:</strong> Efficiency of asset use in generating profit.</li>\n</ul>\n<p>Driver-based financial planning is a process of identifying the key activities (also known as ‘drivers’) that have the highest impact on your business results, and then, building your financial plans based on those activities. It allows you to establish relationships between the financial results and the resources that you need to achieve those results (such as people, marketing budgets, equipment, etc.).</p>\n<p>If you want to know more about driver-based financial planning and why it is the right way to plan, see the founder of Modeliks explaining it in the video below.</p>\n<p><iframe loading=\"lazy\" title=\"Unleashing the Secrets: Dominating Driver-Based Financial Planning\" width=\"640\" height=\"360\" src=\"https://www.youtube.com/embed/TRMzfKz9OOw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen></iframe></p>\n<h2>The Financial Plan Output</h2>\n<p>The objective of financial forecast outputs should enable you and your management team, board, or investors to:</p>\n<ul>\n<li>Quickly comprehend how your Commercial Real Estate Financing business is likely to perform in the future.</li>\n<li>Gain assurance that the plan is thought through, realistic, and achievable.</li>\n<li>Recognize what investment is necessary to implement this plan and what the return on that investment will be.</li>\n</ul>\n<p>To achieve these goals, here is a one-page template to effectively present your financial plan.</p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"/images/cms/WhatsApp-Image-2024-09-27-at-09.52.52.jpeg\" alt=\"Commercial Real Estate Financing financial plan\" width=\"800\" height=\"520\" /></p>\n<p>Besides this one-page overview of your plan, you will need the three projected financial statements:</p>\n<ul>\n<li><strong>Profit and Loss:</strong> Statement showing revenue, costs, and profit over a specified period.</li>\n<li><strong>Balance Sheet:</strong> Snapshot of the company’s assets, liabilities, and equity.</li>\n<li><strong>Cash Flow Statement:</strong> Summary of cash inflows and outflows over a period.</li>\n</ul>\n<h2>Commercial Real Estate Financing Financial Model Summary</h2>\n<p>The financial model summary for Commercial Real Estate Financing is paramount. However, it’s important to note that clarity in presentation is crucial.</p>\n<p>A professional Commercial Real Estate Financing financial model will help you think through your business, identify the resources you need to achieve your targets, set goals, measure performance, raise funding, and make confident decisions to manage and grow your business. Through a structured approach to financial planning, businesses can effectively align their strategic goals with their financial capabilities, driving sustainable growth and success. However, this process requires careful consideration, because it involves numerous variables that can impact outcomes. Although challenges may arise, focusing on these factors will strengthen overall performance.</p>\n<p>If you need help with your financial plan, try <a href=\"https://modeliks.com\" target=\"_blank\" rel=\"noopener\">Modeliks</a>, a financial planning solution for SMEs and startups or contact us at <a href=\"mailto:contact@modeliks.com\">contact@modeliks.com</a> and we can help.</p>\n<p>Author:<br />\n<a href=\"https://www.linkedin.com/in/blagojahamamdziev/\">Blagoja Hamamdjiev</a>, Founder and CEO of <a href=\"https://www.modeliks.com/\" target=\"_blank\" rel=\"noopener\">Modeliks</a>, Entrepreneur, and business planning expert.</p>\n<p><em>In the last 20 years, he helped everything from startups to multi-billion-dollar conglomerates plan, manage, fundraise, and grow.</em></p>\n","slug":"commercial-real-estate-financing-financial-model-example","date":"2025-02-04T08:47:17","featuredImage":{"node":{"id":"cG9zdDo4MTU3","sourceUrl":"/images/cms/main-image-PhYq704ffdA.jpeg","altText":"Commercial Real Estate Financing financial structure"}},"seo":{"metaDesc":"Discover a comprehensive Commercial Real Estate Financing financial model designed to evaluate investments, assess risks, and optimize funding strategies.","title":"Commercial Real Estate Financing Financial Model Example - Modeliks"},"industryName":{"industryName":["real-estate"],"category":["financial-model"]},"h1":"Real Estate Business Plan | Modeliks"}2:["$","$L7",null,{"post":"$8","isBusinessPlan":true}]
6:[["$","meta","0",{"name":"viewport","content":"width=device-width, initial-scale=1"}],["$","meta","1",{"charSet":"utf-8"}],["$","title","2",{"children":"Commercial Real Estate Financing Financial Model Example - Modeliks"}],["$","meta","3",{"name":"description","content":"Discover a comprehensive Commercial Real Estate Financing financial model designed to evaluate investments, assess risks, and optimize funding strategies."}],["$","meta","4",{"name":"keywords","content":"real estate business plan, how to write a real estate business plan, real estate business plan software, business plan for real estate company, real estate business plan example, real estate business plan template, real estate business plan template free, commercial real estate business plan, real estate agent business plan"}],["$","link","5",{"rel":"canonical","href":"https://www.modeliks.com/industries/real-estate/commercial-real-estate-financing-financial-model-example"}],["$","meta","6",{"property":"og:title","content":"Commercial Real Estate Financing Financial Model Example - Modeliks"}],["$","meta","7",{"property":"og:description","content":"Discover a comprehensive Commercial Real Estate Financing financial model designed to evaluate investments, assess risks, and optimize funding strategies."}],["$","meta","8",{"property":"og:url","content":"https://www.modeliks.com/industries/real-estate/commercial-real-estate-financing-financial-model-example"}],["$","meta","9",{"property":"og:site_name","content":"Modeliks"}],["$","meta","10",{"property":"og:locale","content":"en_US"}],["$","meta","11",{"property":"og:type","content":"article"}],["$","meta","12",{"name":"twitter:card","content":"summary"}],["$","meta","13",{"name":"twitter:title","content":"Commercial Real Estate Financing Financial Model Example - Modeliks"}],["$","meta","14",{"name":"twitter:description","content":"Discover a comprehensive Commercial Real Estate Financing financial model designed to evaluate investments, assess risks, and optimize funding strategies."}],["$","link","15",{"rel":"icon","href":"/favicon.ico","type":"image/x-icon","sizes":"16x16"}]]
1:null