Prompt Column and Model Consistency

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Model Consistency & Prompts

You know what they say? Even a caveman can do it! That's how easy it is to use the model. But no matter how easy, it is imperative that consistent entries be made to the LDM input page.

Because of the model's powerful 'what-if' capability, users frequently modify land development components to measure variations in profitability. Given this regularity, it is important that users have absolute confidence that unnecessary entries are not made to the model and that required input are literally and accurately entered. A prompt column and model consistency section are incorporated to the LDM input page to ensure entry errors or ommissions are not made. Notations in the column and/or section identify input errors or inconsistencies and direct you to the corrective measure.

The prompt column of the LDM input page includes a series of directing and correcting prompts. Note the correcting prompts on lines 8 and 11 below. They indicate entry errors have been made - lines 4 and 8 must match (total number of lots) and the number of phases must be consistent.

Note the directing prompts on lines 3, 4, 5, 6, 7, 9 and 10. They tell you what to do! All you need to do is follow directions. Because this is a 2 phase project, the directing prompt on line 7 says '< make no entry'. If this were 3 phase project, line 7 would read '< enter # of lots in phase 3'.


		Input Column	Prompt Column	Output Tables & Schedules

	Identification & Date	Use Tab Key	To Bottom	Annual Profit Table

1	Name of Project	Oak Hollow	< Enter Project Name	Annual Cash Flow Table
2	Data Entry Date	7/1/2009	< Enter Date
				Project Summary Table
	Lots & Phases
				Profit By Phase
3	# of Phases	2	< Enter 1, 2 or 3
4	Total # of Lots	83	< Enter Total # of Lots, All Phases	Lot Sale Schedule

5	# of Lots in Ph 1	38	< Enter # of Lots in Ph 1	Key Variables
6	# of Lots in Ph 2	44	< Enter # of Lots in Ph 2
7	# of Lots in Ph 3		< Make No Entry	Cash Inflow & Loan Reduction
8	Total # of Lots	82	< Error, # of lots on Lines 4 & 8 must be equal	Interest Calculation
				Interest CalculationIInterestCCas

	Land Cost, Timing of Land Purchases, Options & Project Type

9	Total Land Cost, All Phases	$1,500,000	< Enter Total Land Cost, All Phases

10	Project Type	3 Phase - No Options	< Enter Project Type
11	Project Type ID	-	< Error, # Phases on Lines 3 & 10 must match

The bottom part of the LDM input page (questions on lines 57 through 71 below) will let you know if you have been consistent with the entry of land development components. The answers to all these questions must be 'Yes' or 'N/A', or you have made one or more entry errors. Note lines 58, 59, and 67 below. Lines 58 and 67 instruct you to check the prompt column, and line 59 specifically tells you to check line 8. Just follow the simple directions and you will be okay! If you follow the prompts the model consistency section will look like this. If not it may look something like this.


	Model Consistency?

57	Is Model Free from 'Make No Entry' Errors?	Yes	< Model Consistency Results
58	Profit & Cash Flow Indicators' Consistent?	No, check prompts	Must be 'Yes' or 'N/A'.
59	Total Lots & Total Acres Consistent?	No, check line 8	If this is not the case,
60	If Applicable, is the Amt of Seller Financing OK?	Yes	observe the prompts.
61	If Applicable, is the Term of Seller Financing OK?	Yes
62	Are Entries Made to All Required Fields?	Yes
63	Are Absorption and Project Duration in Line?	Yes
64	Does Absorption Meet Model Parameters?	Yes
65	Is the Project Completed Within 120 Months?	Yes
66	Are Loans Paid Off By End of Project?	Yes
67	Are Interest Calculations Consistent?	No, check prompts
68	Is a Target Profit Entered (Non-Mandatory Entry)?	Yes
69	Are Total Acres Consistent (Non-Mandatory Section)?	Yes
70	Are Total Acres Entered (Non-Mandatory)?	Yes
71	Is Sum of Total Acres Consistent (Non-Mandatory)?	Yes	To Top

Another illustration of the prompt column and model consistency section of the LDM is displayed below. Note the directing prompt on line 49 - '< make no entry'. Note also that an entry of 54 acres has inadvertently been made on this line. A correcting prompt on line 54, '< incorrect acres' should alert you to the faulty entry.

	Input Column		Prompt Column

	Total Acres, Acres/Phase
	(Entries Not Mandatory for Profit Calculation)

47	Acres in Entire Project	54	< Enter Total Acres

48	If No Option Agreements, Total Acres	54	< Total Acres
49	Acres in Phase 1	54	< Make No Entry
50	Acres in Ph 1 & Ph 2 Combined		< Make No Entry
51	Acres in Phase 2		< Make No Entry
52	Acres in Ph 2 & Ph 3 Combined		< Make No Entry
53	Acres in Phase 3		< Make No Entry
54	Acres in Entire Project	108	< Incorrect Acres

55	Beg Balance of A&D Loan	$754,925
56	Cash To Project By Developer/Investor	$245,075

Don't worry if you miss the correcting prompt on line 54. The model consistency section will provide you a second chance! Note lines 69 and 71 below. Its really hard to make a mistake.


	Model Consistency?

57	Is Model Free from 'Make No Entry' Errors?	Yes	< Model Consistency Results
58	Profit & Cash Flow Indicators' Consistent?	Yes	Must be 'Yes' or 'N/A'.
59	Total Lots & Total Acres Consistent?	Yes	If this is not the case,
60	If Applicable, is the Amt of Seller Financing OK?	Yes	observe the prompts.
61	If Applicable, is the Term of Seller Financing OK?	Yes
62	Are Entries Made to All Required Fields?	Yes
63	Are Absorption and Project Duration in Line?	Yes
64	Does Absorption Meet Model Parameters?	Yes
65	Is the Project Completed Within 5 Years?	Yes
66	Are Loans Paid Off By End of Project?	Yes
67	Are Interest Calculations Consistent?	Yes
68	Is a Target Profit Entered (Non-Mandatory Entry)?	Yes
69	Are Total Acres Consistent (Non-Mandatory Section)?	Make No Entry Error
70	Are Total Acres Entered (Non-Mandatory)?	Yes
71	Is Sum of Total Acres Consistent (Non-Mandatory)?	No, check line 54	To Top


Line #	Total Acres, Acres/Phase	Input Column	Prompt Column
	(Entries Not Mandatory for Profit Calculation)

47	Acres in Entire Project	54	< Enter Total Acres

48	If No Option Agreements, Total Acres	54	< Total Acres	Clear Acres Button
49	Acres in Phase 1		< Make No Entry
50	Acres in Ph 1 & Ph 2 Combined		< Make No Entry
51	Acres in Phase 2		< Make No Entry
52	Acres in Ph 2 & Ph 3 Combined		< Make No Entry
53	Acres in Phase 3		< Make No Entry
54	Acres in Entire Project	54	< OK

55	Beg Balance of A&D Loan	$754,925
56	Cash To Project By Developer/Investor	$245,075			Avg Annual ROE	63.54%


	Model Consistency?

57	Is Model Free from 'Make No Entry' Errors?	Yes	Model Consistency Results
58	Profit & Cash Flow Indicators' Consistent?	Yes	Must be 'Yes' or 'N/A'.
59	Total Lots & Total Acres Consistent?	Yes	If this is not the case,
60	If Applicable, is the Amt of Seller Financing OK?	Yes	observe the prompts.
61	If Applicable, is the Term of Seller Financing OK?	Yes
62	Are Entries Made to All Required Fields?	Yes
63	Are Absorption and Project Duration in Line?	Yes
64	Does Absorption Meet Model Parameters?	Yes
65	Is the Project Completed Within 5 Years?	Yes
66	Are Loans Paid Off By End of Project?	Yes
67	Are Interest Calculations Consistent?	Yes
68	Is a Target Profit Entered (Non-Mandatory Entry)?	Yes
69	Are Total Acres Consistent (Non-Mandatory Section)?	Yes
70	Are Total Acres Entered (Non-Mandatory)?	Yes
71	Is Sum of Total Acres Consistent (Non-Mandatory)?	Yes	To Top

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302 West Lafayette Road
Medina, OH 44256
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