The TODAY and NOW function don’t require any arguments, as they use the internal clock of the computer to return a value. The TODAY function, returns today’s date, and changes every time you open the spreadsheet on a different day. The NOW function returns today’s date and the current time precise to the second. This accuracy is unlikely to be required in real estate models. In addition given that it changes every second it will also force your spreadsheet to recalculate every second, and will therefore slow down your model.

Legal definition of the IRR

The Internal Rate of Return (IRR) is open to wide interpretation and error. Different Analysts can and do in many cases produce dramatically different IRRs when set the same project. This is of critical importance to anyone involved in a joint venture, or lenders requiring thresholds based on IRR measures to be maintained. There is no legal definition of an IRR, nonetheless a definition of IRR will be required in joint venture agreements and some loan documentation. It is important that parties to an agreement understand the potential misinterpretation of the IRR and set out clearly how the cash flow is to be constructed and returns calculated.
Bayfield Training’s Real Estate Analyst course discusses the IRR in considerable depth, and uses different techniques to check for errors in the IRR as well as looking at the acceptable range of assumptions that can be made and suggesting alternatives to the IRR where appropriate. Bayfield Training’s Real Estate Funding Models course teaches delegates how to calculate IRRs in jointventure agreements.


Switching languages in Excel

If you want to use different languages and settings in Excel you need to change the regional settings on your PC.
First go to the Control Panel from your Windows Start button and select Regional and Language Options. Choose the country whose settings and formats you want from the drop down list on the Regional Options tab and the appropriate language from the Details window on the Languages tab.
Then open Excel and check that for date and currency formats Use System Separators is ticked on the International tab under Tools and Options. You may also want to switch the dictionary language via the Spelling tab on the Options window.