We offer premium consulting services to large real estate investors and developers who are struggling with Excel.
Excel is widely used for predictive modelling, but reliability varies and in the wrong hands can become a liability. Poor spread sheet design can lead to poor investment decisions, and misrepresentation to investors. We can work or rework Excel‐based solutions; or help migrate you to a more robust solution.
Whether you’re using Excel-based financial models; are considering Cougar™, Argus®, Cognos® TM1® or another planning software; or you already have dedicated analysis systems in place – Millar’s modelling principles remain the same.
The three components of a real estate investor’s balance sheet are like intertwined rings. Millar’s approach is to treat Assets, Liabilities and Equity like a 3‐tiered waterfall, where the residual from each level cascades to the next. Millar designs robust financial models with integrity. The more complicated the investment structures, the more important it is that you have someone you can trust to cut through and clarify fundamental concepts.
Asset models form the basis of any reliable analysis. These can be any combination of operational or development properties. In Millar’s experience, these include commercial, industrial, retail, and residential properties and hotels. The common thread is that you can value assets, and with that you can buy or sell them.
Entry and exit valuation requires reliable cash flow forecasts, which rely upon a combination of actual financials, details of lease, sale and other contracts, and reasonable assumptions.
The results from Asset modelling flow to Liability modelling. Liabilities can be any combination of development or operational loans or swaps, with varying liens, and they can be with external or related counter‐parties.
Loans are drawn down, serviced and repaid according to the results of the Asset model, and other, higher‐ranking loans. We can also test loans against their covenants and under varying interest rate scenarios.
The results of Liability modelling flow to Equity modelling, which sits atop the analytical hierarchy. Equity takes many forms, and Millar’s experience covers fund modelling, joint‐venture waterfalls and simpler REIT and company structures.
The focus here is return on equity, which can be measured in many ways including Net Cash Flow after Debt, Internal Rate of Return, and Fair Market Value; as well as Distributions to individual investors.
Clients rightfully worry that they make the right software choice. However, it’s equally important to implement the chosen software properly.
Millar offers a range of services with emphasis on solution design.
Millar’s experience is primarily in Funds Management and Asset Management, but also includes Property Management and Accounting. Funds Management is highly specialised, often with minimal users and great complexity. The key to reliable investment reporting here is strong foundations at the base, and ensuring consistency throughout.
Millar helps audit your current business processes and map your future state before selecting the right software. Your current state often suffers from an over‐reliance upon Excel and other manual processes; so your future state should aim to automate these and streamline the flow of information.
Real estate software almost never operates in isolation, because no single vendor offers a viable “single-stack” solution. Therefore, it’s critical to partner with someone with the integrity of Millar Financial to help you select software that can be implemented effectively.
Reporting results or issuing forward‐looking guidance to your board or to investors comes with a degree of risk, but with Millar’s solution design services you can understand and manage that risk. Millar brings unique skills to designing real estate solutions by combining wide and first-hand systems experience with deep modelling knowledge.
As a Solutions Architect, Millar’s experience includes identifying the data required from property management & accounting, and configuring software to ensure effective and reliable budgeting & forecasting; valuation; asset, portfolio & funds management; and management & investor reporting.
Good real estate systems can be poorly implemented leading to project failure. It’s critical that your project team is led by someone with Millar’s skills and experience.
As the Project Lead, Millar runs design & discovery sessions; coordinates with others to select, develop & oversee an effective implementation team; understands the complete vision, goals and design as well as the client’s proposed usage; guides the team members through execution of the vision; escalates risks & issues; works with the vendors’ research and develop team to validate new capabilities; and systemically applies knowledge to the project.