Real Estate Investment Analysis - RealData

1 real Estate Investment Analysis Version User s Guide RealData Inc. P. O. Box 691 Southport, CT 06890 1982-2010, RealData Inc. RealData is a registered trademark of RealData , Inc. real Estate Investment Analysis Version 1982-2010, RealData Inc. All rights reserved. This software and manual are both protected by copyright law (Title 17 United States Code). Unauthorized reproduction and/or sales may result in the imprisonment of up to one year and fines of up to $10,000 (17 USC 506). Copyright infringers may also be subject to civil liability. Trademarks RealData is a registered trademark of RealData , Inc.; Macintosh is a trademark licensed to Apple Computer Corp.; Windows, Windows95, Windows98, Windows NT, Windows ME, Windows 2000, Windows XP, Vista, Microsoft Word and Excel are trademarks of Microsoft Corp; Acrobat is a registered trademark of Adobe Corporation.

2 RealData Inc. P. O. Box 691 Southport, CT 06890 real Estate Investment Analysis , Version User s Guide RealData , Inc. iii. Table of Contents Chapter 1. Introduction and General 1 What s New in REIA, Version 1 System 2 Excel License 3 Additional 3 Files, Worksheets and 3 Opening and Using Files and 3 RealData 5 Printing 6 Printing Reports to a PDF 7 Entering 8 The 21st 10 Chapter 2. Welcome, Quick Start and 11 The Welcome 11 The Quick Start 11 What the General Worksheet 11 Entering Data in the General 11 Property 11 Month and Year Analysis Begins, Date of 12 Investor and Report Prepared For and 12 12 Analysis 12 Safe Rate, Reinvestment Rate, and Discount 13 Checkbox to Display REIA 14 Checkbox to Hide Report-Only 14 Canadian 14 On-Screen 15 Currency, Length and Area 15 Chapter 3.

3 Quick 17 What the Quick Analysis Worksheet 17 Entering Data in the Quick Analysis 17 Purchase 17 Financing 18 Annual Property Operating 19 Resale 20 Capital 21 Quick Analysis 21 Chapter 4. Basic 23 What the Basic Income Worksheet 23 Entering Data in the Basic Income 23 Chapter 5. Commercial 25 What the Commercial Income Worksheet 25 real Estate Investment Analysis , Version User s Guide RealData , Inc. iv. Entering Data in the Commercial Income 25 Summary 25 The Unit 26 Adding, Editing or Deleting a 26 Additional Rent 28 Rollover 29 Total Base 31 Expense 31 Other Revenue and 31 Tenant 31 32 Total Unit 32 The 21st 33 33 33 Chapter 6.

4 Annual Property Operating Data (APOD).. 34 What the APOD Worksheet 34 How to Use the APOD 34 Entering Data in the Annual Property Operating Data 34 34 Gross Scheduled Income - 35 Vacancy & Credit 35 Operating 36 Property 36 Repairs and 36 Other Line 37 Increase All Operating 37 Altering Titles in the Income-and-Expense 38 Expense 38 APOD 39 Projected Income and 39 Chapter 7. Cash Flow and 43 What Cash Flow and Resale 43 How to use Cash Flow & Resale 43 Entering Data in Cash Flow & Resale 43 The Five 44 Assumption One: 44 Assumption Two: 45 Financing: 45 Mortgages: Year and Month the Loan 46 Mortgages: Principal 46 Mortgages: Term of the 46 Mortgages: Interest 46 Mortgages: Payment to Override 46 Mortgages: Loan 47 Mortgages: Interest 47 Financing: Balloon Existing Loans and 48 Assumption Three: 49 real Estate Investment Analysis , Version User s Guide RealData , Inc.

5 V. Assumption Four: 51 Major Provisions Affecting real 53 53 Capital 53 Deductibility of real Estate 53 At-Risk 54 Alternative Minimum 54 Entering Data in Taxes .. 54 Assumption Five: Capital Improvements & Funded 56 Improvements, 56 Cash Flow and Resale 57 Goal 58 Chapter 8. Loan 62 Chapter 9. Executive 63 Chapter 10. Business 64 Chapter 11. Lease vs. 66 What the Lease vs. Buy Analysis 66 How to Use the Lease vs. Buy 66 Entering Data in the Lease vs. Buy 66 Preliminary 66 Starting 66 Ending 66 Tax 66 Rentable 66 Owner Occupant 67 ..Equals first unit on Commercial Income 67 ..Is Manually Entered 67 The Lease vs. Buy 68 Chapter 12. Partnership 70 What the Partnership Analysis 70 How to Use the Partnership 70 Entering Data in the Partnership 70 Type of 70 List of Limited Partners / Non-Managing 71 Partner 71 Allocation and Distribution 71 Preferred 72 Partnership 73 Initial Capital 73 Net Cash Flow to be 74 The Completed 74 Chapter 13.

6 Partnership 76 Chapter 14. Rent Roll 77 Chapter 15. Graphs .. 78 real Estate Investment Analysis , Version User s Guide RealData , Inc. vi. Chapter 16. Sensitivity 79 Chapter 17. Advanced 81 What the Advanced Features Worksheet 81 Entering Data in the Advanced Features 81 Monthly Payment Overrides for Each 81 Rehabilitation Tax 81 Chapter 18. Portfolio 83 Chapter 19. Comparison Analysis .. 84 Chapter 20. 85 real Estate Investment Analysis , Version User s Guide RealData , Inc.

7 Vii. TABLE OF FIGURES Figure 1-1 Excel 2007 Ribbon with RealData 2 Figure 1-2 Excel Worksheet 4 Figure 1-3 REIA Worksheet 4 Figure 1-4 Windows Screen Sizing 5 Figure 1-5 Excel Menu Bar with RealData 5 Figure 1-6 Print Dialog 7 Figure 1-7 Radio Buttons & Check 10 Figure 2-1 Property 11 Figure 2-2 Property 11 Figure 2-3 Analysis 13 Figure 2-4 REIA 14 Figure 2-5 15 Figure 2-6 Completed General 16 Figure 3-1 Purchase 18 Figure 3-2 Financing 19 Figure 3-3 Annual Property Operating 20 Figure 3-4 Resale 20 Figure 3-5 Capital 21 Figure 3-6 Quick Analysis Report Print Dialog 22 Figure 4-1 Basic Income - Unit 24 Figure 5-1 Commercial Income Summary 25 Figure 5-2 Unallocated Commercial Rentable sf 25 Figure 5-3 The Unit 26 Figure 5-4 The New Unit

8 Wizard Dialog 27 Figure 5-5 New Unit Unit of 27 Figure 5-6 Edit Unit Name Dialog 28 Figure 5-7 Rent Change Schedule (Unit Block).. 29 Figure 5-8 The Rollover Wizard Dialog 30 Figure 5-9 Tenant Improvements (Unit Block).. 32 Figure 5-10 Commissions (Unit Block).. 32 Figure 5-11 Present Value of Net Unit 33 Figure 5-12 Notes (Unit Block).. 33 Figure 6-1 Gross Scheduled 35 Figure 6-2 Gross Scheduled Income - 35 Figure 6-3 APOD Operating Expenses - Data Entry 36 Figure 6-4 Repairs and Maintenance 37 Figure 6-5 Operating Expense Annual Rate of 37 Figure 6-6 Expense Recovery (Pass-Through Check Boxes).. 38 Figure 6-7 Completed Pass-Through 38 Figure 6-8 Expense Recovery Percentage, Commercial 39 Figure 6-9 Projected Income & Expenses, Total 40 Figure 6-10 Projected Income & Expenses, Dollars per Square 41 Figure 6-11 Projected Income & Expenses, Dollars per 42 real Estate Investment Analysis , Version User s Guide RealData , Inc.

9 Viii. Figure 7-1 45 Figure 7-2 Mortgages, First 45 Figure 7-3 Mortgages, Second 45 Figure 7-4 Mortgage 47 Figure 7-5 Entering a Variable Mortgage 48 Figure 7-6 Balloon Existing Loans and 48 Figure 7-7 Estimate Selling 49 Figure 7-8 Capitalize Current or Next Year 50 Figure 7-9 Override Calculated Resale 51 Figure 7-10 Depreciable 54 Figure 7-11 Depreciation 55 Figure 7-12 Investor Active or real Estate 55 Figure 7-13 Investor s Tax Bracket and 56 Figure 7-14 Capital Improvements & Funded 56 Figure 7-15 Apply Funded 57 Figure 7-16 Goal Seek Dialog 59 Figure 7-17 Goal Unobtainable Dialog 59 Figure 7-18 Goal Seek 60 Figure 7-19 Excel s Built-in Goal 61 Figure 10-1 Business Plan Cover 64 Figure 11-1 Lease vs.

10 Buy Preliminary 66 Figure 11-2 Rent Loss Radio 67 Figure 11-3 Value of Owner-Occupant Rent (from Commercial Income).. 67 Figure 11-4 Value of Owner-Occupant Rent 67 Figure 11-5 Lessee Rent 68 Figure 11-6 Lease vs. Buy 69 Figure 12-1 Type of 70 Figure 12-2 List of Non-Managing Members (LLC).. 71 Figure 12-3 Non-managing Member Selection (LLC).. 71 Figure 12-4 Managing Member Name (LLC).. 71 Figure 12-5 Allocation and Distribution Percentages (LLC).. 72 Figure 12-6 Preferred Return (LLC).. 72 Figure 12-7 Partnership 73 Figure 12-8 Initial Capital Investment (LLC).. 74 Figure 12-9 Net Annual 74 Figure 16-1 Update Sensitivity 79 Figure 16-2 Sensitivity 79 Figure 17-1 Monthly Payment Overrides for Each 81 Figure 17-2 Rehabilitation Tax Credit 81 Figure 17-3 Rehabilitation Tax Credit Data 82 real Estate Investment Analysis , Version User s Guide RealData , Inc.