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hi everyone its Mike here from adventures in CRE comm this is the companion video for the post titled construction draw schedule accounting for true loans a cost the model that you can download on the website in this video will help show you how to accurately account for the interest reserved in the construction draw schedule and will therefore help you properly allocate the total dollar amount both debt and equity okay so as mentioned in the post its really tricky at first thought to build a model that will calculate the interest reserve off the initial budget edit back to the budget and then reallocate the total budget so that total costs are properly split among debt and equity so to further elaborate on this point by adding the interest reserve back to the budget youre actually changing the budget that the interest azar was created from the first place and so what this means is you have a new budget and the equity requirements are going to be different your debt requirements are
