PowerPoint Presentation
Analyze futureapartment cash flowsCome to a decision about the
price for purchase or listing of a multi-family / apartment for
purchase or listing based on all the future cash flows that you
estimate. Ratios and measures like cap rate, cash-on-cash, IRR, Net
Present Value, will be used along with sensitivity analysis. All
areas of the cash flow will be covered including revenues,
expenses, loans, and capital spending with unlimited detail and
after tax.www.planease.comAnalyze the cash flow for investments
like Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc1At the end you can do this!Create a micro website
that has all the cash flows and explains the ratios, measures, and
assumptions with a password. Just send the URL to whoever you want
to have see the analysis.
Of course you and print the analysis as well.
www.planease.comAnalyze the cash flow for investments like
Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc21. Starting Point - Entering General
InformationVideo 3:15 MinutesClick on File/New Assumptions on menu
bar.
Investment Name - 'Los Amigos Apartments'APOD Purpose -
'Broker's Recap'Property Location - '1000 Mayfair Avenue'Property
Type - 'Apartment Complex'Square Feet or Units - '42'Fiscal Year
Starts on - 'Jan 1'Comments - Leave Blank.And click OK.
Verifying Your Entries- Click on Basic button to bottom right.
When the Basic Analysis screen appears, choose the Vertical view
(at the bottom right of the screen). When done, click on
Exit.www.planease.comAnalyze the cash flow for investments like
Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc3Play along?Enter the analysis with the tutorial
using the full functioning free trial. You can follow the tutorial
step by step, or enter you own analysis instead.FREE
TRIALwww.planease.comAnalyze the cash flow for investments like
Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc42. Investment Page(Purchase and Sale)
Video 3:30 MinutesPrice of Property - '6000000'Closing Costs -
'1'Date of Acquisition - '1.16'Holding Period - '10'Inflation Rate
- '4'Sale Price MethodSelect Capitalize Next Year's NOISale Price
Parameter - '8'Selling Costs - '6'
Verifying Your Entries- Click on Basic button to bottom right.
When the Basic Analysis screen appears, choose the Vertical view
(at the bottom right of the screen). When done, click on
Exit.www.planease.comAnalyze the cash flow for investments like
Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc53. Investors Page(Tax & PV Discount
Rates)
Video 3:21 MinutesClick on the'T'button next to General Vacancy
& Credit LossTax Rate First Year - Federal 35 State 9.3Tax Rate
Following Years - Federal 35 State 9.3Capital Gain Rate - Federal
20 State 0Cost Recovery Recapture Rate - Federal 25 State 0Click
Paste to paste the Tax Rates.General Vacancy & Credit Loss
0Present Value Discount Rate Before Debt - 10Present Value Discount
Rate Before Tax - 10Present Value Discount Rate After Tax - 10
Verifying Your Entries- Click on Basic button to bottom right.
When the Basic Analysis screen appears, choose the Vertical view
(at the bottom right of the screen). When done, click on
Exit.www.planease.comAnalyze the cash flow for investments like
Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc64. AddingDepreciation(For after tax analysis)
Video 2:30 MinutesPage Title - BuildingDepreciable Amount -
83(Any number less than 100 is a % of the Price)Depreciable Life -
27.5(Residential 27.5 / Commercial 39)Leave all the other default
values as is.
planEASe permits you to enter any life or method so you can
depreciate any type of item. If a property you are analyzing has
more depreciable items than this tutorial, you can repeat this
Edit/Add Page process until all depreciable items are entered.
Check the Audit Window at the bottom left of the screen to view the
cash flows you have just entered. It should look as shown here. The
smaller value in the first (and last) year is due to application of
the IRSs half-month rule.
Verifying Your Entries- Click on Basic button to bottom right.
When the Basic Analysis screen appears, choose the Vertical view
(at the bottom right of the screen). When done, click on
Exit.www.planease.comAnalyze the cash flow for investments like
Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc75A. Revenues(Group Units by Type ~ Multiple
income streams)
Video 5:50 MinutesType One Bedroom Units in PageClick on
the'C'button next to Annual Revenue.The pop up Calculator will
appear, and can be configured to operate in Unit or SqFt mode, with
rates entered as Months or Annual.:Units - 10$ / Unit / Mo -
1000SqFt / Unit - 650and click Paste to paste the calculation into
the Annual Revenue.
Revenue Growth Method Select Annual (@ %> Inflation)Revenue
Growth Rate 0 (at the Inflation Rate)Management Fee 5Vacancy Factor
3
This completes the One Bedroom Units revenues. The rents are
growing at the inflation rate (4%).
Verifying Your Entries- Click on Basic button to bottom right.
When the Basic Analysis screen appears, choose the Vertical view
(at the bottom right of the screen). When done, click on
Exit.www.planease.comAnalyze the cash flow for investments like
Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc85B. Revenues(Group Units by Type ~ Multiple
income streams)
Page Title - Two Bedroom UnitsRevenue Growth Method - Select
Annual (@ %> Inflation)Revenue Growth Rate - 0 (at the Inflation
Rate)Vacancy Factor - 6Management Fee - 5
Click on the'C'button next to Annual Revenue:Units - 32$ / Unit
/ Mo - 1200SqFt / Unit - 750click Paste to paste the calculation
into the Annual Revenue.
Verifying Your Entries- Click on Basic button to bottom right.
When the Basic Analysis screen appears, choose the Vertical view
(at the bottom right of the screen). When done, click on Exit.Video
5:50 Minutes
Click on Edit/Add Revenue Page on menu bar. A new Revenue
Assumption Page appears for you to input more revenues. You can
enter as many Pages as you desire.You have now completed the Two
Bedroom Units revenues. Look at the Assumption Page List to top
right and you will see Rev One Bedroom Units and Rev Two Bedroom
Units now appear in the list. Ensure your Audit Window appears as
shown here. These units are growing at the inflation rate (6%)
annually.www.planease.comAnalyze the cash flow for investments like
Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc95C. Revenues(Group Units by Type ~ Multiple
income streams)
Page Title - LaundryAnnual Revenue - 3600Revenue Growth Method
Select Annual (@ %> Inflation)Revenue Growth Rate - 0(at the
Inflation Rate)Vacancy Factor - 5Management Fee - 5
Verifying Your Entries- Click on Basic button to bottom right.
When the Basic Analysis screen appears, choose the Vertical view
(at the bottom right of the screen). When done, click on Exit.Video
5:50 Minutes
Click on Edit/Add Revenue Page on menu bar. A new Revenue
Assumption Page appears for you to input more revenues. You can
enter as many Pages as you desire.You have now completed the
Laundry revenue. Look at the Assumption Page List to top right and
you will see Rev One Bedroom, Rev Two Bedrooms, and Laundry now
appear in the list. Ensure your Audit Window appears as shown here.
These units are growing at the inflation rate (5%)
annually.www.planease.comAnalyze the cash flow for investments like
Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc106A. Expenses(Multiple expense items)
Video 5:22 MinutesPage Title - Property TaxesAnnual Expense -
1.2(1.2% of Property Price)Expense Growth MethodSelect Annual(@
Growth Rate)Expense Growth Rate - 2Leave all the other default
values as is.
Verifying Your Entries- Click on Basic button to bottom right.
When the Basic Analysis screen appears, choose the Vertical view
(at the bottom right of the screen). When done, click on Exit.This
completes the Property Tax Expense Assumption Page. Taxes are
growing at 2% - selecting Annual (@ Growth Rate) for the Expense
Growth Method and entering 2% for the Expense Growth Rate will
increase the expense every Jan by 2%. Check the Audit Window at the
bottom left of the screen to view the cash flows you have just
entered. It should look as shown here. Look to the top right
Assumption Page List and you will see Exp Property Taxes is now on
the list.www.planease.comAnalyze the cash flow for investments like
Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc116B. AddingExpenses(Multiple expense items)
Insurance Annual Expense 9000Pool Annual Expense 2400Gardener
Annual Expense 1000Utilities Annual Expense 7200Expense Growth Rate
2Resident Manager Annual Expense 10000Maintenance Annual Expense
5000Reserve Annual Expense 5000Miscellaneous Annual Expense
1000
Verifying Your Entries- Click on Basic button to bottom right.
When the Basic Analysis screen appears, choose the Vertical view
(at the bottom right of the screen). When done, click on Exit.Video
5:22 Minutes
Click on Edit/Add Expense Page on menu bar, then type in
specifications below for each expense page listed below. Select
Annual@%>Inflation for each expense leaving the Expense Growth
Rate at the "0" default except for
Utilities".www.planease.comAnalyze the cash flow for investments
like Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc127. Loans(Debt Coverage Ratio or Loan to
Value)Video 2:40 MinutesPage Title - USA BANKLoan Amount - 80 % LTV
or "1.2" DCR (Whichever is lower)Loan Interest Rate - 8Original
Loan Period - 20Loan Points Charged - 1Leave all the other default
values as is.
Verifying Your Entries- Click on Basic button to bottom right.
When the Basic Analysis screen appears, choose the Vertical view
(at the bottom right of the screen). When done, click on Exit.Your
loan is now entered into your planEASe analysis. The Loan Amount
can be entered in three different ways; as a dollar amount (any
amount over 100) as a percentage of the price/loan to value (any
number between 3 and 100) as done with 80 here as a debt coverage
ratio (any number less than 3 will be a DCR based on the NOI the
year the loan starts) Additional loans can be entered the same way
when needed in an analysis. Check the Audit Window at the bottom
left of the screen to view the loan you have just entered. It
should look as shown here. Of course, the number of loans for a
property is unlimited.www.planease.comAnalyze the cash flow for
investments like Apartments, Self-Storage, Mobile Home Parks,
Marina Slips, Multi-Family, etc138. Adding Capital Spending (Enter
a cost item with a 5 year life Straight Line using the Half Year
rule.)Page Title - RefrigeratorsDepreciable Life - 5Expenditure
Date - 6.16Depreciable Start Date - 6.16
Assuming the refrigerators will be purchased 5 months after the
building is acquired (on 1 June 2005) so the dates have to be
changed from the acquisition default date.
Click on'C'next to Depreciable Amount to bring up Calculator,
type in the following specifications, then click Paste.
Units - 42$ / Unit - 550
Verifying Your Entries- Click on Basic button to bottom right.
When the Basic Analysis screen appears, choose the Vertical view
(at the bottom right of the screen). When done, click on Exit.Video
3:10 Minutes
Click on Depr Building in the Assumption Page List to the top
right, then click on Edit/AddDepreciationPage on menu bar. Remember
how you added more Revenue and Expense Assumption Pages? You use
the same steps to add more Depreciation Assumption
Pages.www.planease.comAnalyze the cash flow for investments like
Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc149. Adjustment Time - Sensitivity Analysis (Vary
assumptions for 'What If's')Video 7:24 MinutesYou can vary any
assumption that you entered, and see the resulting returns or
ratios. Just to get you started here are a few to do.Click on
Sensitivity button to bottom right. You are now in Sensitivity
Analysis. You are going to vary the price of the property and see
how it affects the IRR After Tax.Click on Price of Property to top
left, then click onRate of Return After Tax (IRR)to bottom left.
Type in the specifications below, and press the Run button.
Starting at 5500000" Stopping at 6000000" In Steps of 50000You will
see planEASe calculates the Price of Property versus Rate of Return
After Tax for the values you entered. The After Tax IRR takes all
the assumptions over the 10 year holding period into account. All
assumptions that are link to the Price of Property (like Closing
Costs and the Depreciation Amount) are changing at the same
time.Click on Another to Top right. Click on Price of Property to
top left, then click onNet Capitalzation Rateto bottom left. Go
ahead and do a few more, the video will give you more examples.
www.planease.comAnalyze the cash flow for investments like
Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc15Suggested Reports for Unit InvestmentsFor
presenting you can create a website from the analysis very quickly
by selecting File/Publish to Web, and then email the URL to your
selected audience.Alternativly you can printout as paper or to a
PDF print driver, individual reports or packages that you create.
Here is a list of some of the reports:
APOD Video 4:45 Min Detail and Basic Analysis Video 3:05 Min
Acquisition Report Video 0:55 Min Sale Report Video 2:35 Min
Proforma Income Statement Video 10:35 Min Rent Roll Report Video
1:40 Min Annual Statements Video 1:42 Min Assumptions Report Video
2:20 Min Title Pages Video 1:37 Min
www.planease.comAnalyze the cash flow for investments like
Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc16Extra VideosAdjustable LoansVideo 3:15
MinutesCompare LoansVideo 3:43 MinutesCompare InvestmentsVideo 1:47
MinutesCombine InvestmentsVideo 2:45 Minutes
www.planease.comAnalyze the cash flow for investments like
Apartments, Self-Storage, Mobile Home Parks, Marina Slips,
Multi-Family, etc17