SOFTWARE OVERVIEW

This software consists of processors, forecasting analysis and instruction documentation. The front end processors are called APOD, Mortgage, Cash Flows, Sales, Proforma, Lease Tracking, Returns, ROI 30 Year and Assumptions Variables. Processors pass information between each other to perform specific calculations. Entry fields are marked with a red triangle in the upper right hand corner. Moving back and forth between screens changing input variables and studying analysis allows investors the clearest picture for accurate forecasting, property management and lease tracking. This software is designed to help the investor who needs to understand the big picture precisely in order to maximize their return on investment, manage property and track lease tenants. This software will help individuals fluctuate mortgage loan variables, interests rates, depreciation values, taxes, vacancies, rental income, expense, escalation rates, cap rates and perform precise calculations used for modeling different investment scenarios. Used by the beginning investor to understand purchases before they buy to the expert investor managing seven figure portfolio and multiple properties. Forecasting models help investors look years into the future and better understand returns and how to achieve those results. Used in industries from private investors, real estate sales, mortgage banking, appraisers, investment corporations, title companies and attorneys.

APOD reflects the annual working model of the property acquisition. This analysis represents Net Operating Income and the Cash Flow Before Taxes. Mortgage information and acquisition cost are reflected here. Data that must be input into this analysis is transferred into the cash flow analysis for calculations. All the calculations are automated. Expense items are entered on a monthly basis and converted to annual. The Mortgage data must be entered in the Mortgage analysis and will be carried over to the other analysis.

The first and second mortgage information is entered on this screen. Cost Recovery of improvements and Personal property is also entered here. Mortgage information is posted to all screens for calculations. Tax credits are entered on the mortgage screen and posted for sales and cash flow items.

CASH FLOWS

The CashFlows analysis obtains input from the APOD. The mortgage information is posted on this analysis with the mortgage amount, rate and Payments. Payments will be calculated automatically and will post to the APOD and SALES analysis. Income and expenses on this analysis will escalate with the percentages entered in the Variables analysis. Variables are initialized but may be changed for the property being modeled. Cash Flow Before Tax and Cash Flow After Tax numbers will carry over into the Returns analysis for calculations. The cost recovery and mortgage information is carried over to the Sales analysis for adjustments.

SALES

The Sales analysis calculations are automatically calculated. The projected sales price is calculated by using the net operating income in last projected sales year and applying the cap rate entered in the Variables analysis for each of the projected sales price scenarios. Depreciation and expenses are calculated from all analysis and applied to sales scenarios. The cap rates for each alternative are entered in the Variables analysis and the estimate percentage of expenses for the cost of sale.

PROFORMA

The proforma analysis is used to determine the property psf values from purchase and anticipated sale. The comparison information on this analysis is for the current year estimated income and purchase information. The cap rate is changeable in order for recalculation of estimated sales, comparisons and market analysis.

ROI 30 Year

The forecasted return on investment over a 30 year life is calculated based on all information passed between processors. The calculation is derived after an estimated increase in income and expenses have been calculated with software for cost recovery and applied income.

LEASE ANALYSIS

The lease analysis information allows you to track individual leases of space. This information can be adjusted to determine best pricing for space and estimate net rents. This analysis serves as a separate totaling of income that maybe used to adjust APOD estimated income after you have entered and total lease for property. This analysis functions independently but does access other analysis information for calculations, you may leave this blank, numeric fields must be zero filled and are suppressed. The lease analysis may be duplicated as many times as needed for additional lease tenants. User will typically enter data on lease tracking then take totals and enter this figure into the APOD analysis for estimated rental income.

RETURNS

The returns analysis shows before and after tax return on investment, internal rate of return and net present value on the three alternative investment scenarios. All the calculations derived information from all analysis to model investment scenarios. Return on investment is shown for multiple years to model projected income figures.

VARIABLES

The Variables analysis is the input data for income tax brackets, capital gains tax, depreciation method, rent escalators, vacancy escalators, cap rates and, expense on sale rate. These variables will determine your return on investment and help you manage property over life of investment. The cap rates and expense rates or used in conjunction with all analysis to determine your projected sales.

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